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VAT in Malta

VAT Guide for EU countries within Europe

VAT in Malta

Whether you’re a European or non-European company, establishing certain activities in Malta may mean you need to register for VAT. You can use a fiscal representative or tax advisor to draw up your VAT, Intrastat and ESL returns with total peace of mind in Malta.

If you deal with companies in Malta, you may be able to claim a maltese VAT refund.

Here you can find the specifics of VAT regulations in Malta, which work alongside the harmonised framework of the EU as explained in our guide to intra-Community VAT obligations.

Basic information

EU membership 2004
ISO code MT
VAT introduced in Malta 1999
VAT name in Malta It-taxxa fuq il-valur mizjud
VAT ID format in Malta MT99999999
Territories with special status in Malta n/a

VAT rates in Malta

Standard VAT rate 18 %
Reduced VAT rate (1) 7 %
Reduced VAT rate (2) 5 %
Super reduced VAT rate n/a
VAT parking rate n/a
Zero VAT rate yes

Thresholds triggering VAT reporting obligations in Malta

Intrastat threshold at introduction 700 EUR
Intrastat threshold on dispatch 700 EUR
Distance selling threshold As of 1st July 2021, the threshold is EUR 10,000 for all intra-Community distance sales.

Reporting frequency in Malta

Intrastat declaration monthly depending on threshold
EC Sales List (ESL) declaration
VAT returns quarterly
Reporting currency EUR

VAT-related penalties in Malta

Failure to file a VAT return Maximum penalty of EUR 250 per month of delay. In the event of an obvious error on the return, a penalty of up to 20% of the difference between the amount of VAT declared and the VAT due.
Late payment of VAT Interest on arrears of 0.54% of the amount of VAT due per month of delay.
Failure to report ESL/DEB Penalty of between EUR 700 and EUR 3 500.

Useful links on VAT in Malta

Tax Authorities in Malta Tax authorities
Ministry of Finance in Malta Ministry of Finance
Check a VAT number in Malta Check a VAT number
EU VAT Guide EU VAT Guide
Malta has been a member of the European Union since 1st May 2004 and is its smallest country. Malta is also a member of the 2008 Eurozone.

The Maltese economy is dependent on foreign trade (particularly as a transshipment point for sea freight), tourism and the electronics and textile industries.
Because of the difficulty of competing with the economy of neighbouring Sicily, the island has developed an attractive tax system for foreign companies, which has supported the development of its banking services. In 2006, Malta reached an agreement with the European Commission, which in effect allows Malta to maintain a highly competitive corporate tax regime.

Malta introduced VAT in 1969. The legislation is based on the Community Directives, as well as the Value Added Tax Act (Chapter 406).
All non-established traders must be registered for VAT if they carry out VAT transactions in Malta for which they are entitled to deduct input VAT and for which they are liable for VAT. We recommend appointing a Maltese tax representative to assist with all your returns.

The current VAT rates in Malta are as follows:

  • Standard VAT rate: 18 %
  • Reduced VAT rate (1): 7 %
  • Reduced VAT rate (2): 5 %
  • Super reduced VAT rate: n/a
  • VAT parking rate: n/a
  • Zero VAT rate yes

Certain transactions in Europe may require registering for VAT and filingVAT returns in Malta:

To check if your activities involve VAT obligations in Malta, use our VAT simulator or contact us.

When do e-traders need to register for VAT in Malta?

In Malta just like in other European Union countries, e-traders must register for VAT:

  • when the overall threshold of EUR 10,000 for Intra-Community distance selling is exceeded and they have not opted to pay the VAT in Malta via the One Stop Shop,
  • or when they hold a stock of goods in Malta and must report the stock supply transactions.

What are the VAT obligations for e-traders in Malta ?

In addition to VAT registration, e-traders must:

  • Apply the defined VAT ratesin Malta: standard rate (18 %), reduced rates 1 and 2 (7 % and 5 %).
  • Declare stock transfers between marketplaces‘ storage platforms, as well as the supply translactions for these stocks.
  • File periodic returns (VAT returns, intrastat, ESL), to ensure their VAT compliance in Malta.

> Learn more about the VAT & e-commerce regulations and the VAT regime for logistics platforms in Europe.

Why identify yourself to VAT in Malta?

You may need a VAT number in Malta to fulfil your tax obligations in this country. Indeed, certain activities such as sales, purchases and subcontracting operations may require VAT identification. To check if your activities require VAT identification in Malta, use our VAT simulator or contact us.

VAT maltese is named It-taxxa fuq il-valur mizjudand the VAT numbers in Malta have the following structure: MT99999999.

How do I get a VAT number in Malta?

The administrations in charge of in Malta VAT are the following: Tax authorities, Ministry of Finance.

Registering for VATis a relatively simple formality compared to setting up a company, but in addition to obtaining a VAT number in Maltayou’ll need to file periodic VAT returns to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.

Companies with a VAT number in Malta must complete and submit VAT returns in Malta detailing all taxable income (sales) and expenses (costs), with the following periodicity: quarterly .

Failure to comply with the deadlines imposed by the maltese authorities for the deposit and payment of VAT will result in the payment of penalties . For this reason, it is recommended that foreign companies use the services of an agent or a tax representative.

These penalties are defined as follows in Malta:

  • Penalties for failure to file a VAT return in Malta: Maximum penalty of EUR 250 per month of delay. In the event of an obvious error on the return, a penalty of up to 20% of the difference between the amount of VAT declared and the VAT due.
  • Penalties for late payment of VAT in Malta: Interest on arrears of 0.54% of the amount of VAT due per month of delay.

In addition to VAT returns, companies may be required to provide the maltese authorities with Intrastat & EC Sales List returns:

  • Intrastat returns enable the maltese authorities to compile foreign trade statistics.
    Companies must file these Intrastat returns as soon their turnover reaches the threshold.
    Intrastat threshold at introductio n in Malta (700 EUR HT/an)
    – Intrastat threshold on dispatch in Malta (700 EUR HT/an).
    Failure to comply with the deadlines imposed by the maltese authorities for the filing of these Intrastat returns wil incur a penalty payment for the company.
  • The sales summary returns (EC Sales List or ESL) or purchases (EC Purchases List or EPL) in Malta are for tax purposes.
    Failure to comply with the deadlines imposed by the maltese authorities for the filing of these ESL returns wil incur a penalty payment for the company.

In principle, a non-resident company in Malta can recover all or part of the VAT incurred on its expenses.

There are three different scenarios:

  • The company, whether it is established within the European Union or not, is already registered for VAT in Malta, or is obliged to register for VAT in Malta. In this case, it must apply for a VAT refund via the periodic VAT return filed in Malta, according to a periodicity:quarterly .
  • The company is established within the European Union, is not registered for VAT in Malta and is not required to do so. In this case, a VAT refund should be requested via the tax authorities’ electronic portal in the country where the company is established.
  • The company is not established within the European Union and is not required to register for VAT in Malta. In this case, they must use the services of a fiscal representative to carry out what is required by the maltese authorities on their behalf.
    > Learn more about our VAT recovery services.


*This information is subject to change without notice.

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