Maltese VAT registration

There is no VAT registration threshold for non-resident companies providing taxable supplies in Malta. This means the first invoice should include Maltese VAT.

For EU VAT registered companies selling goods via the internet to consumers in Malta, the VAT registration threshold (distance selling) is €35,000 per annum.

Registration usually takes three to four weeks. Once the registration has been granted, a unique Maltese VAT number is allocated to the company. All EU member states have a fixed format for their VAT numbers. In Malta, the format of the number depends on the category of registration.

Non -resident businesses can apply to the VAT Department's headquarters by post or by submitting an online application through the VAT Department website. The Maltese Vat Department will require the appropriate forms to be completed, and submitted with the following documentation:

• Copy of Articles of Association
• Copy of the certificate of registration at the Companies’ Register
• Copy of the passport or identity card of the director signing the VAT registration application

The VAT Act provides for three categories of VAT registration:

Article 10 Registration

• This is the most common type of registration. Businesses with annual turnover exceeding the applicable thresholds for taxable supplies must register under this Article. Article 10 registration also applies to sellers from other EU member states making distance sales to non-taxable customers in Malta. Businesses registered under Article 10 are given a VAT identification number with an "MT" prefix.Article 11 Registration

Article 11 Registration

• Registration under Article 11 applies to businesses with an annual turnover of over the EUR14,000 threshold and are therefore exempt from registration. However, these businesses are still considered to be small undertakings in that their turnover does not exceed the VAT payment thresholds for taxable supplies. Businesses registered under Article 11 receive a VAT identification number without an "MT" prefix

Article 12 Registration:

• This type of registration applies to entities or individuals intending to make intra-Community acquisitions in Malta that are:
  • Either non-taxable legal persons (entities that are not deemed economically active in terms of the VAT Act for example, pure holding companies, hospitals and schools), or
  • Exempt taxable persons (not registered under Article 10, and not required to be registered under Article 11, for example insurance companies, medical practitioners)

When any of the above makes intra-Community acquisitions in Malta from a person established in another EU member state exceeding EUR10,000 in a calendar year, that person is required to register under Article 12 and pay VAT in Malta. If the EUR10,000 threshold is not exceeded, the VAT may either be paid in the other member state or in Malta following Article 12 registration.

In the case of a taxable person established in Malta (not registered under Article 10) who receiving services from a person established outside Malta, the place of supply is deemed to be in Malta. In this situation the VAT is accounted for in Malta by applying the reverse charge rule and the person receiving the service must register for VAT under Article 12.

Persons registering under Article 12 receive a VAT identification number with an "MT" prefix.

Once a business has its VAT number, it is free to commence trading, and charging Maltese VAT. It must comply with the Maltese VAT compliance rules, and file regular returns (see Maltese VAT Returns briefing).