Malta VAT - Value Added Tax System
Malta VAT System
Anyone who carries on an economic activity is obliged to register with the VAT department, unless he provides an exempt without credit supply. Such registered persons collect VAT on behalf of the Government therefore, as such, VAT is suffered by the ultimate consumer and not the registered person.
Malta VAT Rates
The standard rate is 18% but a reduced rate of 5% is charged in respect of certain supplies including the supply of electricity, printed material, medical accessories and the repairs of certain products. There is also a reduced rate of 7% charged on the provision of accommodation in licensed holiday premises.
Exemptions from VAT
Exempt importations include:
Exempt intra-Community acquisitions include:
Exempt without credit supplies include:
- goods that are intended to be placed under a customs duty suspension regime
- re-imported goods which are re-imported unaltered
Exempt intra-Community acquisitions include:
- acquisitions of goods whose supply or importation is exempt
- acquisitions that are part of certain triangular transactions
Exempt without credit supplies include:
- the transfer and the letting of immovable property (excluding inter alia commercial letting and hotel accommodation)
- insurance services
- credit, banking and certain investment services
- lotto and lotteries including remote gaming
- health and welfare
- cultural services
- education
Exempt Persons
Persons whose annual turnover is less than the statutory thresholds are entitled to be registered as an ‘exempt person’. An exempt person does not charge VAT but is not to deduct input VAT. Persons whose turnover does not exceed €35,000 (in the case of the supply of goods) and €14,000 (in the case of services) may opt to be registered as an ‘exempt person’.
Malta VAT Returns
A VAT registered person is to submit a VAT return on a quarterly basis (every three months). In certain circumstances, the Commissioner may allow such registered person to report on an annual basis.
For more information about the Malta VAT System, filling in VAT Forms and VAT Exemptions please contact us on info@virtusmalta.com or by filling in the form on the Contact Us page.
For more information about the Malta VAT System, filling in VAT Forms and VAT Exemptions please contact us on info@virtusmalta.com or by filling in the form on the Contact Us page.
