In Malta, the Value Added Tax (VAT) system is regulated by the Value Added Tax Act (Chapter 406 of the Laws of Malta). VAT is a tax on the value added to goods and services at each stage of production and distribution and is ultimately borne by the final consumer. Businesses that are registered for VAT in Malta are required to charge VAT on their sales and are generally entitled to claim back VAT on their purchases, subject to certain rules and conditions.

The standard VAT rate in Malta is currently set at 18%, but there are reduced rates of 7% and 5% that apply to certain goods and services. For example, the reduced rate of 7% is applicable to accommodation services, while the reduced rate of 5% applies to printed matter, medical accessories, and supplies for people with disabilities, among others. Exemptions from VAT are also available for certain transactions, such as education and healthcare services.

The VAT administration in Malta is overseen by the VAT Department. The VAT Department is responsible for the registration of businesses for VAT, the processing of VAT returns, and the enforcement of VAT laws and regulations. Businesses that are registered for VAT in Malta are required to submit periodic VAT returns, usually on a quarterly basis, detailing their VAT transactions and payments for the period.

Our professional team provides expert advice and support to businesses operating in Malta to ensure compliance with all relevant VAT rules and regulations. We can assist with VAT registration, VAT returns and VAT recapitulative preparation and submission, VAT compliance reviews, and VAT advisory services. We are committed to helping our clients navigate the complexities of VAT regulations and minimize their tax liabilities while complying with all applicable laws and regulations.