Value Added Tax (VAT) Services in Malta 

  Value Added Tax (VAT) Services in Malta 

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Our experienced indirect tax team can assist you with any advice required in relation to VAT procedures & VAT treatment of particular economic transactions. 

VAT Advice & Assistance  

The team can assist you through the VAT registration process, guiding you through the different types of VAT registrations possible, and ensuring the VAT number is obtained within the shortest possible timeframe. 

CSB Group can also assist you with the compilation and submission of the necessary VAT related documents, ensuring that periodic VAT returns and other required submissions are duly completed and filed appropriately with the relevant authorities in a timely manner. CSB Group can also represent the company with the VAT authorities who can, at their discretion, request meetings with the company directors to obtain further information about the company’s activities. In the case of a VAT inspection, we can also assist our clients by liaising with the VAT authorities and providing the appropriate records as necessary.

VAT Registrations 

Any person (individual or company) who carries on an economic activity is considered a taxable person and is required to register for VAT within 30 days from commencement of the economic activity. Failure to register in time will result in hefty administrative penalties. Companies which do not carry on an economic activity (such as pure holding companies) are not required to be VAT registered.

Types of VAT Registrations

The VAT Act allows for three different types of registrations for VAT, as follows :

Article 10 of the VAT Act

A taxable person whose annual turnover exceeds the entry thresholds as per table below is required to register under Article 10 of the VAT Act. Taxable persons registered for VAT under Article 10 must charge VAT on their taxable supplies of goods or services, may claim back VAT incurred in the course of their taxable activities, and need to file quarterly VAT returns. In making taxable supplies the taxable person is required to issue tax invoices / fiscal receipts including all necessary details as specified in the VAT Act, and must keep record of all invoices on which VAT is being claimed back (these must show the taxable person’s VAT number). A person carrying out mixed supplies is also obliged to register under Article 10 of the VAT Act. 

Article 11 of the VAT Act

A taxable person whose annual turnover does not exceed the entry thresholds as per table below may opt to register under Article 11 of the VAT Act (the taxable person may still opt for Article 10 registration). Taxable persons registered for VAT under Article 11 do not charge VAT on their taxable supplies of goods or services, will not be able to claim back VAT incurred in the course of their taxable activities, and need to file an annual VAT declaration. The taxable person is still required to issue tax invoices / fiscal receipts including all necessary details as specified in the VAT Act.

Article 12 of the VAT Act

A company not registered for VAT (which do not carry on an economic activity) or a taxable person not registered under Article 10 making intra-community acquisitions of goods exceeding €10,000 in value (over a calendar year) must register under Article 12 of the VAT Act and pay VAT on these acquisitions. Companies / taxable persons registered under Article 12 need to submit Notices of Payment of VAT whenever they receive any services from the EU / outside the EU or whenever they make intra-community acquisitions of goods. Moreover, on an annual basis they must file a declaration. 

Up until 31st December 2017 most gaming companies were registered under Article 12. Effective 1st January 2018 there were significant changes in this respect. For more details please refer to the article on New VAT Guidelines on Gambling and Betting.

The thresholds as mentioned above are as follows:

CategoryEntry thresholdExit threshold
Economic activities consisting principally in the supply of goods€35,000 €28,000
Economic activities consisting principally in the supply of services with a relatively low value added €24,000 €19,000
Other economic activities€20,000 €17,000

As explained above, a taxable person whose annual turnover does not exceed the entry thresholds may opt to register under Article 11. The exit thresholds apply in cases where a taxable person registered under Article 10 wishes to change their registration to Article 11.

VAT Compliance Procedures 

VAT Returns (for Article 10 registrations) 

must be submitted within 6 weeks following the end of each VAT quarter. Failure to submit a VAT return by the deadline will result in a monthly administrative penalty equal to the higher of:

    1.  €20; and 
    2.  1% of the VAT amount due to the authorities as recorded in the VAT return.

Where the VAT payable is less than €250, this administrative penalty is capped at the amount of the tax payable or €50 per VAT return, whichever is greater. 

If in any VAT quarter input VAT exceeds output VAT, any excess will be refunded back to the taxable person. If output tax exceeds input VAT, then the VAT payable will need to be paid to the authorities by the VAT return submission deadline. Failure to pay will result in interest being incurred at a rate of 0.54% per month.

VAT Declarations (for Article 11 & 12 registrations)