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Malta

 

News & Tips

VAT treatment of goods transferred for valuation purposes [Tip]

Since 01/01/2013, goods that are transferred for the purpose of valuation to another Member State and then return back to their initial supplier in the Member State from which they were initially dispatched shall no longer be regarded as a transfer to another Member State.


DOING BUSINESS IN MALTA [MT] - VAT GUIDE

 

General

VAT Directive

Malta

What is the structure of the VAT number?

Each individual VAT identification number shall have a prefix in accordance with ISO code 3166 - alpha 2 - by which the Member State may be identified.

 

Maltese VAT numbers have 10 characters [MT + 8 digits]. The first digit is always "1", the next five digits refer to the number of the taxpayer in the Commissionner's VAT register and the last two digits constitute a control number.

 

What is the local name of the tax?

 

Taxxa fuq il-Valur Mizjud [VAT]

 

VAT rate

VAT Directive

Malta

 VAT rates

Member States must apply a standard VAT rate [not lower than 15%] which must be the same for the supply of goods and for the supply of services.

Member States may apply either one or two reduced rates [not lower than 5%] only to supplies of goods or services as listed in the Annex III of the VAT Directive.

 

Malta applies a standard VAT rate of 18% and two reduced VAT rates: 5% and 7%.

See VAT rates applied in the EU

VAT return

VAT Directive

Malta

How is the tax period determined? 

The tax period shall be set by each Member State at one month, two months or three months.

Member States may, however, set different tax periods provided those ones do not exceed one year. 

Tri-Monthly

Your company has to report its VAT position by filing periodical VAT returns on  a tri-monthly basis [standard tax period].

However, Maltese tax authorities have full discretion in allocating shorter or longer tax periods.

 

When should periodical VAT return be filed?

The VAT return shall be submitted by a deadline to be determined by Member States.

That deadline may not be more than two months after the end of each tax period.

 

Periodical VAT returns must be submitted by electronic means to Maltese VAT authorities before the 22nd day of the second month [= 1 month + 22 days] following the month during which the relevant tax period ends.

Statement

VAT Directive

Malta

Annual recapitulative statement

Is this requirement laid down in the country and what is the filing deadline?

Member State may require taxable persons to submit a return in respect to all transactions carried out in the preceding year.

That return shall provide all the information necessary for any adjustments.

 

Your company is not required to file any summarizing annual VAT return in Malta.

Recapitulative statement of intra-EU supply of goods [European Sales Listing - ESL]

Are quarterly filings allowed by the country and what is the filing deadline?

The recapitulative statement shall be drawn up for each calendar month.

However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement on each calendar quarter where the total quarterly amount of intra-EU supplies of goods does not exceed either in respect of the quarter concerned or of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency.

The recapitulative statement shall be submitted within a period not exceeding one month.

 

The recapitulative statement [ESL] must be drawn up for each calendar month.

Taxpayers can however opt for filing the Statement on a quarterly basis provided the threshold of € 50.000 is not exceeded.

The statement has to be filed by electronic means before the 15th day of the month following the reporting period [month/quarter] to which it relates.

Payment

VAT Directive

Malta

What is the payment deadline?

Any taxable person liable for the payment of the VAT must pay the net amount of the VAT when submitting the VAT return. 

Member States may, however, set a different date for payment of that amount.

 

 

The VAT due should be paid by filing deadline for the VAT return to which it relates. 

Are interim payments required?

Member States may require interim payment to be made.

Interim payments are not required in Malta.

 

VAT refund

VAT Directive

Malta

VAT refund for companies VAT registered in the country.

Is any VAT credit automatically carried forward or refunded?

Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, the Member States may, in accordance with conditions which they shall determine, either make a refund or carry the excess forward to the following period. However, Member States may refuse to refund or carry forward if the amount of excess is insignificant.

 

A VAT credit is in principle automatically carried forward to the next period, unless a tax refund has been applied for. 

Special measures for foreign companies

VAT Directive

Malta

Optional reverse charge [art. 194 of the VAT Directive] for non-resident supplier.

SUPPLY OF GOODS

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge is applicable under conditions if the supplier is not established and not registered in Malta.

 

Optional reverse charge [art. 194 of the VAT Directive] for non-resident provider. 

SUPPLY OF SERVICES

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge is applicable under conditions if the provider is not established and not registered in Malta.

Have simplification measures been taken to avoid registration of the foreign company for the goods held on consignment in the country?

 

No

No simplification measures are available for consignment stock.

Foreign taxpayers are therefore required to be registered for VAT purposes in Malta.

 

Do special arrangements apply to "call-off-stock"?

 

No

No simplification measures are available for call-off-stock.

Foreign taxpayers are therefore required to be registered for VAT purposes in Malta.

 

Triangulation can be applied when the middleman (B) is VAT registered [as a non-established company] for others supplies in the 3rd country [Member State of destination]?  

Triangulation simplification measures can be applied even if the middleman B is VAT registered as a non-established company in Malta [Member State C].

 

VAT on import

VAT Directive

Malta

VAT warehousing regime

Member States may exempt the importation of goods and the supply of goods which are intended to be placed under warehousing arrangements other than customs warehousing.

 

Malta has not introduced VAT warehousing regime.

VAT on importation – Postponed accounting via the VAT return.

Is it possible for a company to pay the import VAT via the periodical VAT return?

Member States may provide that VAT on importation does not need to be paid at the time of importation on condition that it is entered as such in the VAT return  to be submitted.

 

Postponed accounting via the VAT return is possible. A deferred payment for VAT and customs [similar delay] is also possible under specific conditions.

 

Miscellaneous

VAT Directive

Malta

Intrastat Threshold  

Dispatches: € 700

Arrivals : € 700

Distance Sales - Threshold  

 € 35.000

See various thresholds applied in the EU

Ministry of Finance   website

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