The rules on Maltese VAT registrations, returns and compliance are based on European Union EU VAT Directives which Malta has incorporated into its VAT Act. Malta introduced Value Added Tax in 1995. The tax is administered by the Maltese VAT Department.
Non-Maltese companies, or ‘non-resident’ traders, providing goods or services in Malta to local companies or consumers may have to register their business for Maltese VAT. They will then have to follow the Maltese VAT compliance rule including invoicing and various VAT rates, as well as pay any Maltese VAT due.
Should you register for Maltese VAT?
There are a number of trading situations which typically require a foreign trader to register with the Maltese tax authorities. These follow the broad EU VAT rules, and include:
- Importing goods into Malta from outside of the European Union
- Moving goods between Malta and other EU member states (intra-community supplies), either as sales (dispatches) or purchases (arrivals)
- Buying and selling goods in Malta, known as domestic reverse charge
- Selling goods over the internet to Maltese consumers, subject to the Maltese distance selling VAT registration threshold
- Goods held in rented warehouses in consignment stock
- Charging for live exhibitions, events or training in Malta
- If a company is otherwise a non-VAT trader, but is receiving services in Malta under the reverse charge rule
- The self-supply of goods
Few companies need to VAT register if they are providing services to local Maltese companies, and instead can use the Reverse Charge process. This is following the 2010 VAT Package changes.
Note that providers of electronic, broadcast or telecoms services to consumers in Malta only have to VAT register in one EU country under the MOSS scheme to file a single return covering all 27 member states.
If you do need to VAT register, read our Maltese VAT registration briefing to understand the requirements, including the VAT registration thresholds. You can read more about Maltese VAT returns too.
There may be further exemptions from the requirement to VAT register in Malta you should consider
Need help with your Maltese VAT compliance?
Researching Maltese VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade.
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