Malta joined the European Union in 2004 and became a member of the Eurozone in 2008, adopting the currency of the Euro.
VAT rates in Malta
The standard rate of VAT is 18%, and reduced rates of 5% and 7% are available.
VAT registration in Malta
The VAT registration limit in Malta for established businesses is €7,000, and zero for non-established businesses.
Distance sales have a limit of €35,000 for VAT registration.
The format for a VAT identification number is: MT 12345678. Every company must hold a number like this in order for accurate taxation.
VAT returns must be submitted quarterly and annual returns are required.
Are there any Intrastat thresholds in Malta?
Yes. There is a limit of €700 for both dispatches and arrivals.
VAT recovery in Malta
- Is VAT recovery permitted for non-established non-EU businesses?
Yes, allows VAT recovery for all non-EU countries.
- Are there any non-VAT recoverable expenses?
Yes, recovery of input tax is restricted on certain items, i.e. business entertainment and cars.
Reverse charge applies to the majority of cross border services. An extended charge applies to services provided by a non-established business to a Maltese VAT registered customer.
Requirements and regulations in Malta
Non-EU companies have the option to appoint a tax representative but one is not required to register for VAT in Malta.
Use and enjoyment rules apply in Malta.
The period of VAT recovery by tax authorities has a timescale of 6 years in order to prevent fraud.
There is no specified period for VAT deductions and refunds.
Please contact us for further information about paying taxes in Malta, and a member of our team will be happy to help you.