Malta (MT)

Country Malta
EU Member State Yes
Standard rate of VAT 18%
Reduced rates 5% / 7%
VAT identification number format MT 12345678
VAT registration limit established businesses EURO 7,000
VAT registration limit non-established businesses Nil
VAT registration limit distance sales EURO 35,000
VAT return periods Quarterly
Annual returns No
Intrastat thresholds: dispatches and arrivals EURO 700 for both dispatches and arrivals
EC Sales Lists frequency Monthly or quarterly
EC purchase lists No
Other reporting requirements No
VAT recovery by non-established non-EU businesses Allowed for all non-EU countries.
Expenses on which VAT is not recoverable Most countries including Malta restrict input tax recovery on certain items. This may include costs related to cars and employee and business entertainment.
Reverse Charge The reverse charge mechanism applies to the majority of cross border services.
Extended reverse charge Services provided by a non-established to a VAT registered customer in Malta are subject to the reverse charge and the customer accounts for the VAT. Please contact us if you would like details of how the extended reverse charge applies in Malta.
Fiscal representative required for non-EU businesses Appointment of a tax representative is optional.
Use and enjoyment rules Use and enjoyment rules have been implemented in Malta. Please contact us for details.
Local address Accordance
Statute of limitations Recovery of VAT by the tax authorities: The period is 6 years.
Deduction and refund of VAT: The period is not specified in the VAT law.

This information is correct at the time of publishing (January 2016) but may change at any time. This listing is produced for general guideline purposes only – for detailed information about any particular country and/or threshold, please contact us.