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Malta falls under the EU VAT regime, and is part of the European Union single market economy. VAT Directives are issued by the EU which lay out the principles of the VAT regime to be adopted by the member states. These Directives take precedence over the local legislation.
Click here if you would like free guidance on Maltese VAT and compliance.
Maltese VAT Law
Maltese VAT law is contained in the Value Added Tax Act of 1999 (amended periodically) and various subsidiary regulations. It is administered by the Department for Value Added Tax.
Maltese VAT Registration
Foreign companies may register in Malta for VAT without the need to form a local company – this is known as non-resident VAT trading. There is no VAT threshold in Malta for the registration of non-resident traders, and an application for a VAT number must be received by the VAT Department no later than 30 days from the first taxable supply.
There are strict rules on the situations where a registration is permitted. Common scenarios which require a Maltese VAT registration include:
- Importing goods into Malta;
- Buying and selling goods within Malta;
- Organising live events, conferences etc in Malta;
- Holding goods in a warehouse in Malta as stock;
- Selling goods from Malta to other EU countries;
- Acquiring goods from other EU countries into Malta; and
- Distance selling to private individuals, e.g. internet retailing.
Registering for Maltese VAT generally takes around 2 weeks, although this can vary.
Malta VAT Compliance
There are detailed rules controlling the recording and processing of Maltese transactions. These include guidelines on:
- Maltese invoice requirements;
- Foreign currency invoicing;
- Correcting errors in previous returns; and
- What records must be kept.
maltese VAT Rates
The standard VAT rate in Malta is 18%. There is a reduced rate of 5% for: letting of accommodation; electricity; medical accessories; books and newspapers; and other.
There are many variations to the rates above, including exempt and zero-rated taxable supplies. Please contact us to learn more:
enquiries@tmf-vat.com
maltese VAT Returns
Companies with a Maltese VAT number must submit periodic returns detailing all taxable supplies (sales) and inputs (costs). Generally, returns are submitted quarterly in Malta – although not always in line with calendar quarters. VAT returns in Malta are due 6 weeks from the end of the reporting period.
maltese Intrastat and EC Sales Lists
In addition to VAT returns in Malta, companies may be required to submit additional statistical information. The Maltese Intrastat system, (or supplementary statistical declaration), requires a monthly return listing all movement of goods between Malta and other EU-member states. There are annual thresholds for these filings.
The EC Sales List (ECSL) return contains information on the VAT numbers of customers and the values of sales in the period to them, and must be filed quarterly. ECSL filings can only be submitted online through the VAT Department’s e-VAT services.
Click here to read more about Intrastat and EC Sales Lists
Malta VAT Refunds
If a foreign company is not making taxable supplies in Malta, but is incurring Maltese VAT on local goods or services, then Maltese VAT may recovered through a VAT reclaim.
For more details, click here to read about our VAT Recovery service
To talk about our Maltese VAT services, enquiries should contact TMF’s UK office, which co-ordinates TMF's European VAT services. TMF has offices in Malta.
enquiries@tmf-vat.com
+44 (0)870 067 8881
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