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INTERNATIONAL VAT GUIDE

Last Updated: December 2, 2024

VAT Guide for Businesses with Customers in Malta

This guide provides an overview of VAT (Value Added Tax) in Malta, including applicable rates, registration requirements, invoicing rules, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Malta or with Maltese customers.

Overview

Malta’s VAT system, governed by the Value Added Tax Act (Act XXIII of 1998), aligns with the EU VAT Directive. VAT is applicable on most goods and services within Malta, as well as on imports.

Currency

Euro (€)

VAT Number Format

MT followed by 8 digits (e.g., MT12345678)

Fiscal Representation

Neither EU nor non-EU businesses selling in Malta are required to appoint a fiscal representative

Voluntary Registration

Yes, available for businesses below the threshold.

VAT Rates in Malta

Rate Rate Type Description
18% Standard Rate Applies to most goods and services
12% Special reduced rate Applies to chartering activities 
7% Reduced Rate Applies to accommodation services
5% Reduced Rate Applies to medical supplies, books, and certain essentials
0% Zero VAT rate Certain foodstuffs, prescribed medicines, intra-community supplies, and international passenger transport.

VAT Registration in Malta

Business Type VAT Registration Threshold
Resident Businesses EUR 35,000 [Goods] EUR 30,000 per annum [services]
Non-Resident Businesses No threshold; registration required for any taxable activity in Malta

VAT Filing and Payment Deadlines

Frequency Filing Deadline Payment Deadline
Quarterly 15th day of the month following the quarter 15th day of the month following the quarter
Annual Not applicable Not applicable

Digital Services VAT Information

VAT on Cross-Border Electronically Supplied Services Yes
VAT Rate on Digital Services 18%
Threshold for Registration EUR 10,000 per calendar year for EU-based businesses; no threshold for non-EU businesses
VAT on B2B Sales Reverse charge mechanism applies

Note:

Malta applies VAT on digital services based on the consumer’s location, generally utilizing the OSS system for EU cross-border services.

Digital Services in Scope

  • Website supply, web-hosting, and maintenance
  • Supply of software and updates
  • Streaming or downloading of music, films and games

Exemption

Access to electronic newspapers and periodicals may be exempt under specific conditions, typically for educational or public interest purposes.

E-invoicing Requirements

Malta encourages e-invoicing but does not mandate it for private sector transactions. Public sector suppliers, however, are required to comply with the EU e-invoicing directive.

Digital Reporting Requirements

Malta mandates digital reporting of VAT-related transactions for businesses through an electronic submission system approved by the Maltese tax authorities.

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Disclaimer: This guide is for informational purposes only and may not cover all aspects of Maltese VAT. Consult one of our tax professionals for specific guidance regarding your business.

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