Self-employed individuals, Partnerships and Companies may register with the VAT office to comply with the local Value Added Tax Act.
IF YOU ARE ALREADY VAT REGISTERED
If the new business activity is in addition to other business activities carried out under an existing VAT number, the same number should be used for the new activity. However, the registered person must inform MTCA (VAT) through the VAT eService about the nature of the new business activity. If the new business activity will be carried out under a new Limited Liability Company, then a new registration is required.
VAT COMPLIANCE
Individuals or entities that are VAT registered have to regularly send in a VAT Return that would include the total sales, purchases and VAT credit or payable amounts. This declaration would normally have to be sent in every 3 months unless otherwise indicated by the VAT office. The VAT Return must be submitted electronically through the VAT Online Services via Personal Services / Assigned or Delegated Services. The approximate time to fill in the online VAT return varies as it is dependent on the type of taxpayer / company requirements. However, during the filling in of return, one may opt to save the details and resume later. On submission, the user will receive a system generated acknowledgement email. Upon submission, the VAT return is processed automatically and no further back-office user intervention is required. As stipulated by the VAT Act whenever the declared vat tax return results in a refund, such refund is issued automatically within five (5) months from the acknowledgment date of the VAT tax return or the due date whichever is the latest.
APPLYING FOR A VAT REFUND (8th DIRECTIVE)
Taxable persons who incur VAT in connection with their business activities in a Member State in which they do not make supplies of goods or services are entitled to deduct the VAT charged in that Member State. This "deduction" is by means of a refund of VAT from the Member State in which the VAT was paid.
More information is available in the Guide on the rules for VAT Refunds to Taxable Persons not established in the Member State of Refund but established in another Member State.
Any objections to the decision taken by the Malta Tax and Customs Administration may be appealed through a legal professional online.
EU businesses wishing to claim MT VAT may apply for the VAT refund (8th Directive) by means of the web portal of their Member State.
APPLYING FOR A VAT REFUND (13th DIRECTIVE)
Taxable persons established outside the European Community, and not registered for VAT in Malta may claim for a refund under the 13th Directive.
Appeals against decisions to refuse a refund application may be made by the applicant to the Administrative Review Tribunal.
This presentation provides information on how to access and submit your online VAT Return.
WHAT IS VAT TAXABLE AND WHAT IS EXEMPT?
The supply of goods and services taking place in Malta are by default taxable at a standard VAT rate of 18%. However, Maltese VAT law provides for a zero rate (0% or exemption with credit) and various reduced rates on the supply of a list of specifically defined goods and services. The reduced rates applicable in Malta are 12%, 7%, 5% or 0%.
WHAT KIND OF BOOKS AND RECORDS DO YOU NEED TO KEEP AND FOR HOW LONG?
You need to keep the following records and documents:
- Copies of fiscal receipts issued
- Fiscal Cash Register (FCR) readings
- All Customs import/export documentation
- Purchases and Sales Invoices
- Debit and Credit Notes
- Cash Books and Petty Cash Books
- Day Purchases and Sales Ledger
- Value Added Tax account and Annual VAT account
- Bank account connected with the business
- Any other records and documents relevant to your economic activity
You are obliged to retain these records and documents for six years as the Department may request them for inspection.
However in cases where the provisions for partial attribution on capital goods and on immovable property applies, the six years shall start to run from the end of the five year period or twenty years period as the case may be.
LINKS TO RELATED TAXATION PAGES
Income Tax
Resources and Further Details
CONTACT DETAILS
Malta Tax and Customs Administration
vat.mtca@gov.mt
last updated Jan 2026