VAT in Malta

1. What is the VAT in Malta?

The standard VAT rate in Malta is 18% and is usually levied on supply of goods and services, intra-community acquisition of goods in Malta and imports from outside the European Union. However, a reduced VAT rate of 7% is charged on accommodation, while electricity, confectionery, medical accessories, printed matters and works of art are subject to a VAT rate of 5%. Zero-rated VAT goods and services include exports, sea vessels, gold, food, pharmaceutical goods and international transport.

2. How can I get a VAT refund in Malta?

VAT can be refunded in Malta if an application form is submitted. A representative of the company can submit the claim with the electronic tax portal in Malta. However, the request cannot be submitted later than nine months after the end of the period for the VAT refund. Before the claim, the representative must first apply for an electronic identity that gives him access in order to upload the application. Nevertheless, the invoices should also be scanned and uploaded together with the form.

3. How can I register for VAT in Malta?

Registration for VAT in Malta is required only if the company’s annual turnover exceeds 10,000 EUR. An authorised person must submit some documents to the tax authorities on behalf of the company in order to obtain a VAT number. Anyway, this number is only issued if the application for VAT registration in Malta is accepted. There is also the possibility to register as “small undertaking” if supplies made in Malta can be exempt from VAT.

4. How does intra-community VAT work in Malta?

Intra-community acquisitions in Malta are subject to VAT if the transaction is proceeded by a person or company that is registered for VAT in Malta. VAT is also levied on intra-community acquisitions when a vendor is not eligible for exemption of VAT in his state, even though he may be part of a “small undertaking” in the EU member state he comes from.