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Malta VAT Guide 2026

Malta applies a Value Added Tax (VAT) system compliant with EU VAT directives. The standard rate is 18%, with reduced rates of 7% for accommodation and tourism-related services, 5% for electricity and medical supplies, and 0% for exports. Businesses must register for VAT if their taxable turnover exceeds the registration threshold, and file quarterly returns.

Overview — VAT in Malta

VAT is administered by the Commissioner for Revenue (CFR). Malta joined the EU in 2004 and adopted the euro in 2008, and its VAT system is fully aligned with the EU VAT Directive. The tax year operates on a calendar basis. VAT-registered businesses file returns quarterly (January-March, April-June, July-September, October-December). The standard VAT rate is 18%, among the lowest in the EU.

VAT Rates in Malta

Malta applies multiple VAT rates depending on the type of goods or services supplied:

  • Standard rate — 18%: Applies to most goods and services, including general retail, professional services, electronics, clothing, food and beverages (except basic foodstuffs), and vehicles.
  • Reduced rate — 7%: Applies to accommodation in hotels and similar establishments, restaurant services, passenger transport, and certain tourism-related activities. This rate is designed to support Malta's tourism industry.
  • Reduced rate — 5%: Applies to electricity supply, medical equipment and supplies, pharmaceutical products, and certain other essential goods and services.
  • Zero rate — 0%: Applies to exports of goods outside the EU, international transport, and certain other supplies specified under EU VAT rules.

Registration Threshold

Businesses must register for VAT if their annual taxable turnover exceeds EUR 35,000 for supplies of goods or EUR 30,000 for supplies of services. Voluntary registration is permitted for businesses below these thresholds. Non-established businesses supplying taxable goods or services in Malta must register regardless of turnover. Registration is completed through the CFR VAT portal.

VAT Filing and Returns

VAT-registered businesses must file quarterly returns. The return periods end on the last day of March, June, September, and December. Returns must be submitted within 45 days after the end of each quarter. Payment of any VAT due must accompany the return. The standard VAT return form requires details of output VAT (on sales) and input VAT (on purchases), with the net amount payable or refundable.

FAQs

Is VAT charged on property sales in Malta?

Yes, the sale of immovable property is generally subject to VAT at 18%, unless the seller is a private individual not acting in the course of an economic activity. However, property transfers are more commonly subject to stamp duty and transfer duty rather than VAT. Developers and property traders must charge VAT on new properties.

Can I reclaim VAT on business expenses?

Yes, VAT-registered businesses can reclaim input VAT on business-related purchases, including goods, services, and capital equipment. Certain expenses (such as entertainment) are partially or fully restricted.

Disclaimer

This guide provides general information about Maltese VAT for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Maltese tax advisor or the CFR directly for advice specific to your situation. InvestmentKit does not provide tax advice.