Maltese VAT rates and VAT compliance

Maltese VAT compliance

Once registered for Maltese VAT, you will have to start following the local rules in a number of aspects.  This includes:

  • Issuing invoices, no later than the 15th day of the  month following the chargeable event ,with the disclosure details outlined in the Maltese VAT Act.
  • Electronic invoices with proper signature, authenticity and agreement by the recipient.
  • Maintenance of accounts of record, which must be held for at least 10 years.
  • Correct invoicing of customers for goods or services in accordance with the Maltese time of supply VAT rules.
  • Processing of credit notes and other corrections.
  • Use of approved foreign currency rates.

Maltese VAT rates

Whilst Malta follows the EU rules on VAT compliance, it is still free to set its own standard (upper) VAT rate.  The only proviso is that it is above 15%.  Suppliers of goods or services VAT registered in Maltese must charge the appropriate VAT rate, and collect the tax for onward payment to the Maltese tax authorities through a VAT filling.

The current rates are:

Malta VAT rates

RateTypeWhich goods or services
18%StandardAll other taxable goods and services
7%ReducedHotel accommodation; use of sporting facilities
5%ReducedMedical equipment for disabled persons; books (including e-books); newspapers and periodicals; admission to some cultural events; minor repairs of shoes and leather goods, bicycles, clothing, and household linens; domestic care services; supply of electricity
0%ZeroSome supplies of food for human consumption (excluding some processed and pre-cooked foods); prescribed medicines; gold ingots and bars; live animals for human consumption; intra-community and international transport; domestic passenger transport (excluding road); cut flowers and plants for food production

What it the tax point for Maltese VAT?

The tax point, or time of supply rules in Malta determine when the VAT is due.

The VAT on a supply which takes place in Malta will be chargeable on the earlier of the following dates:

  • The date when the chargeable event takes place, or
  • The date when a payment is made for the supply.

Where a tax invoice is issued within 30 days of the date as determined above, the tax becomes chargeable on the invoice date.

The VAT on intra-Community supplies becomes chargeable on the earlier of the dates below:

  • The 15th day of the month after the chargeable event, or
  • The date of issue of a tax invoice for that supply.

Where an intra-Community acquisition of goods has taken place, the chargeable event for intra-Community acquisition of goods is deemed to occur on the date which would be the date of the chargeable event had those goods been supplied in the member state where the acquisition is made.

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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