VAT Registration in Malta

Updated on Monday 15th July 2019

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There are several steps and procedures to be completed when starting a business in Malta. The first ones imply the registration of the company with the Trade Register while the next ones must be completed with the tax authorities in Malta. The tax and the VAT numbers are the two most important identification elements required when paying taxes or applying for tax returns in Malta.

The registration for VAT in Malta must be completed with the Office of the Commissioner for Revenue (CFR) by filing specific application forms in accordance with the type of company registered.

Below, our accountants in Malta explain the procedure related to VAT registration. You can rely on us for various accounting services in Malta, among which tax and VAT registration for your business.

What are the entities required to register for VAT in Malta?

According to the Maltese legislation, all companies can register for VAT, but not all are required to obtain the VAT number. VAT registration in Malta becomes mandatory for companies and sole establishments if they make intra-community purchases of goods of at least 10,000 euros.

Companies in other EU countries selling goods via the internet to Maltese customers must also register for VAT in their home countries if they sell products which generate more than 35,000 euros per year. The same regulation applies to Maltese companies selling goods to clients in EU countries, considering Malta is an EU member state.

If you have any questions about how the value added is levied, our Malta tax advisors can guide you.

VAT registration legislation in Malta

There are several types of VAT registration in Malta, according to the Value Added Tax Act of 2003 and its amendments. The following provisions of the law must be respected when registering for VAT in Malta:
  1. all persons and companies undertaking an economic activity in Malta are required to register for VAT, according to Article 10 in the law;
  2. Article 11 provides for the registration of exempt persons and companies provided that the annual thresholds admitted by the law are respected;
  3. the economic activities requiring VAT registration must be completed by a company and not by its employees;
  4. the VAT must be paid at the rates imposed under the Value Added Tax Law which are different for the sale of various goods and services;
  5. all companies and sole traders registered for VAT in Malta are entitled to file returns and claim the amount of money paid as a VAT.

Most of the times, business owners request the services of accounting firms in Malta for VAT registration. We can also assist with audits in Malta if you need such services.

VAT registration with the CFR in Malta

As mentioned at the beginning of the Article, VAT registration in Malta must be completed with the Office of the Commissioner for Revenue which requires the filing of a set of documents. These are:
  • the application form issued by the CFR (the form to be filed depends on the legal entity requesting the VAT registration);
  • in the case of sole traders, the application form must be accompanied by their ID or passports and residence permits;
  • in the case of companies, a copy of the business’ Certificate of Registration is required alongside the application form;
  • a copy of the Articles of Association must also be filed with the Office of the Commissioner for Revenue;
  • a copy of the passport or ID of the director of the company to sign the VAT application form.
Foreign companies can also register for VAT in Malta with the help of our accountants in Malta.

The VAT number in Malta

VAT registration in Malta implies the issuance of a number which has the following format: the country code of Malta (MT) followed by an 8-digit code.

With respect to the VAT rates applicable in Malta, it is important to know that the standard rate is 18%, while the reduced rates are 7% for tourism-related services, 5% for the supply of various goods and services in the medical, domestic care and media sectors, and 0% for the sale of certain food products, international transportation services, exports and others.

2019 is a good year for the trading industry in Malta, as statistics indicate that:
  • the sale of chemical products has increased by 38.9% since the beginning of the year;
  • the sale of manufactured products has also grown by approximately 7%;
  • imports have slightly decreased since the beginning of the year, reaching a value of 437 million euros;
  • between 2018 and 2019, Malta’s exports rose by 1.4% with a total value of around 1,3 million euros.

For assistance in VAT registration and other accounting services, please contact our accountants in Malta.