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Register for VAT in Malta

Register for VAT in Malta

The main law governing the value added tax in Malta is the VAT Act and its subsidiary legislation which provide for the registration of companies and individuals for this tax. According to the law, both natural persons and legal entities involved in an economic activity, are deemed taxable. The VAT registration in Malta is a process that can be overseen from a legal point of view by one of our Maltese lawyers

 Quick Facts  
  We offer VAT registration services Yes 

Standard rate

18%

Lower rate 

12% for: renting pleasure boats, specific health care services, securities custody services, certain credit and credit guarantee management services

Who needs VAT registration

Companies supplying goods and services on the market

Time frame for registration

Around 4 weeks
VAT for real estate transactions

0%

Exemptions available

0% for exports, certain categories of food, packaged medicine, transportation, international traffic

Period for filing

Trimonthly basis

VAT returns support Yes, on request
VAT refund  Yes, companies can submit VAT refund requests
Local tax agent required Yes
VAT registration in addition to existing activities

If the new activity is being added to your existing business activities under the same VAT number, you need to inform the authorities in writing about the nature of the new activity.

No new registration number is required in this case.

VAT number format

MT + 8 digits

Documents for VAT registration in Malta

– Articles of Association and Memorandum of Association,

– passport and ID of the individual signing VAT registration,

– VAT Certificates from the country of origin (if applied)

VAT registration in Malta for sole traders VAT registration for sole traders in Malta is obligatory for annual turnover exceeding EUR 35,000, with the exception of medical practitioners and certain insurance firms.
VAT exemption without credit

– real estate property (with exceptions),

– insurance and financial services,

– cultural and religious facilities,

– lottery and gambling,

– postal services,

– educational services,

– health facilities,

– the supply of water by authorities

VAT for yacht leasing

The standard VAT applied on yachts in Malta is 18%, but it can change based on the percentage of the lease agreement, depending on the length and type of the yacht.

VAT for buying and selling online products

Individuals who purchase goods from websites and then sell them to end customers need to charge and pay VAT on the sales made.

VAT refund for commercial vehicles and fuel (YES/NO)

Yes, but authorities will evaluate your claim.

Keeping records 

Records must be kept for 6 years. 

VAT registration in Malta for non-profit organizations It depends on the nature of the services provided. 
Invoice content

– company name and business address,

– company registration number,

– VAT number,

– price with and without VAT,

– type of product/service sold,

– VAT rate,

– total amount due paid

Invoice issue time limit

Not later than the 15th day of the month following the chargeable event.

Penalties for late VAT returns

20 euros or 1% of the VAT amount.

If the total VAT amount is less than 250 euros, a fixed fine of 50 euros will be applied.

VAT de-registration situations

– closing companies,

– changing business activities

Other taxes in Malta

– corporate income tax,

– custom duties,

– property taxes,

– social security contributions,

– stamp duty, etc.

Maltese VAT registration for a foreign company

Maltese VAT registration for a foreign company requires attention regarding the formalities imposed by the authorities. In principle, the same rules will be followed as those for local companies that want to register for VAT in Malta. Below we review some points to keep in mind when applying for Maltese VAT registration for a foreign company:

  • If companies from EU member countries do not need a fiscal representative for VAT registration in Malta, non-EU companies are obliged to use such an agent. He must have a residence in Malta, and you can call on the help of our Maltese lawyers in this endeavor.
  • Regarding the necessary documents, Articles of Association and Memorandum of Association are required, as well as VAT Certificates from the country of origin. A passport and national ID are also needed for the company’s shareholders and the appointed fiscal agent, as the case may be.
  • The Office of the Commissioner of Revenue in Malta is the institution that issues the VAT number, and the application can also be made online, with the requested documents.
  • A standard form will be filled out with information about the company, its registration date, shareholders, activities, and purposes for VAT registration in Malta.
  • The authorities can also request planned turnover of the company in Malta.

We recommend that you contact our local lawyers if you want to apply for Maltese VAT registration for a foreign company. You will thus have the assurance that all the formalities are respected and that you can obtain a VAT number in a timely manner. We also remind that you can benefit from the support of our immigration lawyers in Malta if you decide on relocation. Immigration to Malta is a fast and simple process.

On the other hand, you can watch the following video presentation about VAT in Malta:

There are many VAT exemptions in Malta. For instance, there is 0% VAT for pre-cooked foods, intra-community, and international transport, prescribed medicines, domestic passenger transport, and plants for food production. More on VAT exemptions can be discussed with our local lawyers in Malta.

Categories of VAT registration in Malta

Companies and individuals are required to register for VAT in Malta under one of the following categories: 

  • those supplying goods or services who will register for VAT under Article 10;
  • those supplying goods or services who will register for VAT under Article 11;
  • those with intra-community supply of goods and services in Malta who must register for VAT under Article 12.

Maltese companies registering for VAT in 2024 under Article 10 will receive a VAT number with the MT prefix which can also be used as an EORI number. Here is the threshold that must be considered for VAT registration in Malta:

  • Threshold of EUR 35,000 for activities consisting in the supply of goods or services online (distance-selling).
  • Non-resident companies do not have a threshold imposed, but have the obligation to register for VAT in Malta.
  • Threshold of EUR 10,000 for digital products and services, intra-community acquisitions.

Registration for VAT for companies supplying services in Malta with a low value-added must respect the entry threshold of EUR 24,000. Other economic activities in Malta are subject to EUR 20,000 threshold.

Below you can discover an infographic with information about VAT registration in Malta:

how-to-register-for-vat-in-malta1.png

VAT registration for a local company in Malta in 2024

Companies and individuals registering for the Maltese VAT are required to submit the following documents with the VAT Department:

  • copy of ID card or valid passport of the applicant in the case of natural persons;
  • copy of the ID card or valid passport of the company’s representative in the case of companies;
  • copy of the statutory documents in the case of partnerships and companies.

The VAT registration in Malta might take around 4 weeks, but to be sure that you respect the formalities, we recommend you get in touch with our Maltese lawyers who can properly manage the formalities.

In the case of VAT returns that are not submitted in accordance with the deadline, the penalty can be EUR 20 or 1% of the VAT amount. EUR 50 is the penalty for cases where the VAT payable is less than EUR 250.

We remind that our immigration lawyers in Malta can help foreigners who want to relocate to this country by handling the formalities.

Obligation for VAT registration in Malta

Companies with profits above EUR 14,000  per year are subject to VAT registration in Malta. As for the sole traders in Malta, even if the VAT registration is compulsory once the economic and financial activities are registered, there are also exemptions from this kind of taxation and that is related to a certain category of sole proprietorships: medical practitioners, particular insurance firms.

We mention that the standard VAT rate in Malta is set at 18% and it is applicable to numerous goods and services with the scope of selling them on the Maltese market.

On the other hand, those interested in immigration to Malta can solicit the legal support of our local experts with experience in this field.

VAT rates in Malta

In 2024, the standard VAT rate in Malta is 18%, whereas, a reduced VAT rate of 12% is applicable to the following services:

  • Custody (unless qualifying for VAT exemption) and management of securities;
  • Management of credit and credit guarantees by entities other than those who extended the credit;
  • Hiring of pleasure boats to individuals under agreements for any duration, provided that the cumulative term, when added to any previous hiring within the same category of goods or similar goods to the same individual within the past twelve months prior to the start of the current hiring, does not exceed five weeks;
  • Services involving the care of the human body provided by professionals regulated under the Health Care Professions Act (Cap.464), including those offered by health studios or similar businesses.

Would you like to buy a house in Malta? You will need support from our lawyers with real estate experience. There are a number of formalities to take into account, and among them, we recommend real estate due diligence. With procedures of this kind, you will be able to guarantee that the property you want to buy is free of disputes or other legal problems. We also mention that we can represent clients in this endeavor so that you don’t have to travel to purchase a property in Malta.

Goods and services exempt from VAT in Malta

There are a series of zero rated supplies or exempt with credit and they include:

  • exports,
  • international traffic and transportation,
  • gold,
  • local transportation,
  • intra-Community goods and services,
  • certain ships and aircrafts,
  • certain categories of foodstuff,
  • packaged medicines.

The products and services exempt without credit include:

  • real estate property (excepting tourism accommodation with a MTA license, parking spaces, property rental by a limited company for economic activities),
  • insurance and financial services,
  • cultural and religious facilities,
  • lottery and gambling,
  • postal services,
  • educational services,
  • health facilities,
  • the supply of water by authorities.

Maltese VAT rates for yacht leasing

The standard VAT rate in Malta is 18% and is applied on the percentage of the lease agreement based on the use of the boat while in the EU waters. In 2024, if an individual has rented the yacht on multiple occasions, totaling more than 5 weeks within the past 12 months, the new lease will not qualify for the reduced 12% rate. Instead, the standard VAT rate of 18% will apply. If this is the individual’s first time renting the boat and the current duration surpasses 5 weeks, the initial 5 weeks will be charged at the 12% VAT rate, with the remainder subject to 18% VAT rate.

Yachts sailing in protected waters only benefit from 100% on the percentage of lease in EU waters. We can also assist with registration for EORI numbers in Malta.

Eligibility criteria to benefit from the Maltese VAT treatment

In order to qualify for the VAT on yacht leasing, a company must respect the following criteria:

  • the boat must be in Malta at the beginning of the lease agreement,
  • one of the parties concluding the lease agreement must be a Maltese company,
  • the lessee must obtain approval and confirmation from the Commission of VAT with respect to the applicable rate,
  • the lessee must pay an initial contribution worth 50% of the value of the yacht,
  • the lease installments must be paid on a monthly basis for 36 months at most,
  • the lessor must make a profit from leasing the boat worth more than the boat’s value.

Invoice content in Malta

Once you have registered for VAT in Malta you can issue invoices with such information. An invoice like this must include the following information:

  • Company name and business address in Malta.
  • The company’s unique registration number.
  • VAT number (MT country code followed by 8 digits)
  • Type of products and services sold.
  • The net price without VAT.
  • The price including the VAT.
  • The VAT rate imposed.
  • Total amount due paid.

This type of information can be found in the software with which the respective invoices are issued and each company must add to the invoicing system before starting the activities. We remind you of the support of our local lawyers for VAT registration in Malta if you are thinking of opening a business in this country.

VAT recovery in Malta

A refund application can be submitted by companies with VAT codes in Malta, in the time frame imposed by the financial authorities in this country. Unless a tax refund has been applied, a VAT credit can be transferred forward to the next period.

A tax representative is necessary for companies from outside the European Union and without a VAT number to be able to apply for a VAT refund.

You have help and legal advice from our Maltese lawyers if you are interested in VAT recovery in Malta.

Time frame for VAT registration in Malta

According to Maltese legislation, a company that starts its activities in Malta must register for VAT within a maximum of 30 days. The Commissioner for Revenue in Malta offers the possibility of online registration for VAT, with the help of a dedicated platform.

Why work with us

Our lawyers in Malta have experience in the tax field and can represent clients interested in company registration for payment purposes. The legislation may seem complex, especially for foreign entrepreneurs, therefore, it is recommended to benefit from the support of our specialists.

For assistance with the VAT registration procedure in 2024, please contact our Maltese law firm.