Accounting for Restaurants and Bars in Malta

Updated on Thursday 26th August 2021

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Malta is one of the most beautiful countries in Europe. With magnificent landscapes and clear blue waters, it attracts tourists from all over the world, not only from neighboring countries. All these attractions have also caught the eye of investors and most of them run successful hotels, bars, and restaurants here.

Starting a business in Malta, including one that operates in the tourism sector is not difficult which is why there are plenty of such enterprises operating here. After the operations commence, however, the business owners need to comply with various requirements, among which legal and accounting ones are very important.

For those who have bars and restaurants, whether they are at the beginning of having been on the market for a while, our accountants in Malta can offer tailored accounting and audit services. We invite you to read how we can help you.

Taxes to be paid by restaurants and bars in Malta

Maltese restaurants and bars are subject to various financial requirements, among which paying certain taxes. Among these, the corporate tax and the value added tax (VAT) are the most important ones. To these, specific excise duties on certain goods may apply.

At a first glance, such businesses must consider:
  • the corporate tax which is levied at the standard rate of 35%, however, Malta has a special tax credit system applied if specific conditions are met;
  • the VAT which is levied at a standard rate of 18%, however, reduced rates apply on the supply of certain goods, among which foodstuff;
  • excise duties on alcohol and tobacco products.

Restaurants and bars must also issue fiscal receipts for each supply they make, which is where specific accounting rules need to be observed.

If you are running a restaurant or bar and need accounting services in Malta, our specialists are at your disposal with tailored assistance in compliance with the regulations applicable in this sector.

Services provided by our accounting firm in Malta to bars and restaurants

Our accountants in Malta have a lot of experience in providing assistance and offering various services to companies operating in all economic sectors that are required to comply with special tax impositions, among which are also shipping companies and restaurants and bars.

When it comes to the food and beverages industry, which covers restaurants and bars in Malta, there are special requirements to be met, among which those related to VAT.

Here are some of the accounting services we can provide for restaurants and bars in Malta:
  1. VAT registration which in the case of restaurants and bars is recommended upon incorporation;
  2. guidance in respecting the tax regulations applied to the supply, sale, and serving of food and beverages;
  3. assistance in respecting the regulations related to the import of alcoholic drinks and cigarettes subject to the excise tax;
  4. audit services in accordance with the national or international standards are also available with us;
  5. financial statements preparation are also available;
  6. assistance in obtaining various tax incentives and deductions applicable in the food and beverages industry, as well as in tourism.

Do not hesitate to send us an email with the services you need, so that we can provide you with a personalized accounting package.

Tailored payroll services in Malta

One of the essential parts of running a restaurant or bar in Malta is the staff. From managers to chefs and waiters, these businesses are some of the most important employers in the country. Setting up the payroll for such companies is one of the most important steps right from the beginning.

All the formalities related to setting up the programs under which the payroll will run. Drafting the paperwork and filing it with the Department for Industrial and Employment Relations in Malta (DIER), setting up personnel’s bank accounts, and making payments in accordance with employees’ salaries.

We will also register the employer and employees with all the authorities regulating labor relations, including for social security payments.

Tourism and food and beverages have one of the highest numbers of employees in Malta, as statistics indicate that:
  • in 2018, there were 6,012 full-time employees in the accommodation sector;
  • there were also 2,851 part-time workers in the same sector;
  • the food and beverages sector also accounted for 7,532 full-time employees;
  • the number of part-time workers was 6,651.

If you need assistance related to the accounting of restaurants and bars in Malta, our specialists are at your disposal. Do not hesitate to contact our accountants in Malta and provide us the necessary details so we can help you.