VAT in Malta in 2026 – Rates, Registration and Compliance Requirements
Malta applies a VAT system based on European Union legislation while maintaining certain national rules regarding registration, reporting and the application of reduced VAT rates. Businesses operating in Malta or supplying goods and services to Maltese customers should understand the country’s VAT requirements to ensure compliance and avoid penalties.
This guide outlines the VAT rates applicable in Malta in 2026, registration requirements, reporting obligations and key considerations for businesses.
VAT Rates in Malta
Malta applies one of the lowest standard VAT rates within the European Union.
Standard VAT Rate – 18%
The standard VAT rate in Malta is 18% and applies to most goods and services that do not qualify for a reduced rate or exemption.
Reduced VAT Rate – 12%
The 12% VAT rate applies to specific supplies defined under Maltese VAT legislation, including certain short-term accommodation and other qualifying services.
The scope of the reduced rate is determined by Maltese VAT law and should be verified for individual transactions.
Reduced VAT Rate – 7%
The 7% VAT rate generally applies to accommodation services provided by licensed establishments and certain tourism-related supplies.
Reduced VAT Rate – 5%
The 5% VAT rate applies to selected goods and services, including certain medical equipment, printed publications, electricity supplies and other qualifying categories defined by Maltese legislation.
Zero Rate – 0%
Malta applies a zero VAT rate to specific supplies, including certain food products, pharmaceutical products, international transport services and other transactions that qualify for zero-rating under Maltese VAT law.
It is important to distinguish between zero-rated supplies and VAT-exempt supplies, as different VAT recovery rules may apply.
VAT Registration in Malta
Both Maltese and foreign businesses may be required to register for VAT in Malta depending on the nature of their activities.
VAT registration may be required in situations such as:
- making taxable supplies in Malta,
- importing goods into Malta,
- storing goods in Malta,
- carrying out intra-EU acquisitions,
- conducting certain cross-border transactions.
For businesses engaged in cross-border B2C e-commerce within the European Union, the EU-wide distance-selling threshold of EUR 10,000 applies. Once this threshold is exceeded, VAT is generally due in the customer’s Member State, either through local VAT registrations or via the VAT OSS (One Stop Shop) scheme.
Types of VAT Registration
Malta operates several VAT registration categories depending on the nature and scale of the business activity.
Article 10 Registration
Article 10 registration applies to businesses operating within the normal VAT system.
Registered businesses:
- charge VAT on taxable supplies,
- submit VAT returns,
- may recover input VAT subject to applicable rules,
- receive a VAT identification number for EU VAT purposes where applicable.
Article 11 Registration
Article 11 registration is intended for certain small businesses benefiting from Malta’s small undertaking scheme.
Businesses registered under this scheme generally do not charge VAT on their supplies and cannot recover input VAT.
Eligibility depends on turnover thresholds and the nature of the business activity.
Article 12 Registration
Article 12 registration applies in specific situations involving intra-EU acquisitions and certain transactions where businesses are required to account for VAT without entering the full VAT regime.
The applicable obligations depend on the type of transactions being carried out.
VAT Returns and Payments
VAT returns are generally submitted periodically in accordance with the reporting schedule assigned by the Commissioner for Revenue.
Depending on the taxpayer’s profile, reporting periods may be quarterly or follow another schedule determined by the authorities.
VAT payments must be made within the deadlines specified by the Maltese tax administration.
Reverse Charge Mechanism
Malta applies reverse charge rules in accordance with EU VAT legislation.
Under the reverse charge mechanism, the responsibility for accounting for VAT shifts from the supplier to the customer in specific situations, including certain cross-border B2B services and other transactions covered by Maltese VAT legislation.
Businesses should ensure that invoices contain the appropriate VAT treatment and references when reverse charge rules apply.
Intrastat in Malta
Businesses involved in intra-EU trade in goods may be subject to Intrastat reporting requirements once the relevant thresholds are exceeded.
For 2026, the Intrastat thresholds are:
- Arrivals (imports from other EU Member States): EUR 700,000
- Dispatches (exports to other EU Member States): EUR 700,000
Businesses exceeding these thresholds must submit Intrastat declarations in accordance with Maltese statistical reporting requirements.
Declarations are generally submitted monthly through the electronic reporting system operated by the National Statistics Office (NSO).
Summary
Malta’s VAT system combines a relatively low standard VAT rate with several reduced rates and specialised registration regimes. Businesses operating in Malta should carefully assess their VAT obligations, registration requirements and reporting responsibilities, particularly when engaging in cross-border trade or e-commerce activities.
Maintaining proper VAT compliance, submitting returns on time and monitoring Intrastat thresholds are essential for avoiding penalties and ensuring smooth business operations in Malta.
Iga Turniak
