Malta VAT 2026
The standard VAT rate in Malta is 18%, but correct accounting starts with the place of taxation, the location of the goods, the status of the customer and the role of the importer.
If your model requires a local number or ongoing settlements, Taxenlight handles foreign VAT registration and foreign VAT returns. This guide will show you when Maltese VAT may apply to your business and which obligations to check next.
Malta VAT in numbers
VAT in Malta – what to check before your first invoice?
Don't start with the rate. Six questions will reveal whether the transaction is subject to Maltese VAT, who should account for it, and what evidence should be kept.
- Goods or services?This separates the rules for the place of taxation at the very first stage.
- Where is the goods?Check the warehouse and the beginning and end of the transport.
- B2B or B2C?Verify the customer's status and VAT number, if provided.
- Who is the importer?Identify the entity shown on the customs declaration and clearance documents.
- Who settles VAT?Seller, buyer, platform, or special procedure.
- Does simplification work?Evaluate reverse charge, OSS, IOSS, and the SME system.
VAT rates in Malta in 2026
If a supply is subject to VAT in Malta and the law does not provide for a preferential rate, 18% applies. The rates of 12%, 7%, 5%, and 0% are closed-ended – similarity of product or industry is not sufficient.
| Rate or status | General scope | Gross at 100 EUR net |
|---|---|---|
| 18%Basic rate | Taxable goods and services for which no preferences or exemptions are provided. | 118 EUR |
| 12%Reduced rate | Four narrow benefit groups, including certain financial services, short-term hire of a qualifying pleasure boat and selected regulated personal care services. | 112 EUR |
| 7%Reduced rate | This includes eligible accommodation and use of sports facilities. | 107 EUR |
| 5%Reduced rate | Selected goods and services, including certain printed materials, medical supplies, minor repairs, home care and selected cultural events. | 105 EUR |
| 0%Exemption with the right to deduct | These include eligible exports, ICT, specified foods, pharmaceuticals and passenger transport subject to conditions being met. | 100 euros |
| ExemptionWithout the right to deduct | Selected financial, insurance, medical, educational, sports and real estate benefits. | 100 EUR, excluding VAT due |
0% rate: the right to deduct may be
The seller does not charge VAT, but, if the conditions are met, retains the right to deduct tax from the costs associated with the sale.
Exemption without the right to deduct: VAT may become a cost
The absence of sales tax does not imply neutrality. VAT on purchases related to exempt activities is generally not recoverable.
When is a transaction subject to Maltese VAT?
A customer's Maltese address or a euro invoice do not determine VAT. For goods, the starting point is location and transport, while for services, the recipient's status and the applicable place of supply rule.
Goods located in Malta
The sale of goods without transport is generally taxed where the goods are located at the time of delivery. Goods released from a Maltese warehouse may therefore constitute a local sale.
Typical B2B service
Consulting, IT, marketing, and accounting services are typically taxed in the country of the business buyer. A Maltese client can then settle the VAT through reverse charge.
Service with a special rule
Real estate, events, catering, passenger transport and short-term rental of means of transport require a separate determination of the place of taxation.
When should a foreign company consider VAT in Malta?
The lack of a registered office, branch, or employees in Malta does not eliminate VAT obligations. The specific transaction, the flow of goods, and the entity responsible for the tax are decisive.
Warehouse and fulfillment
Moving your own inventory from another EU country may be considered an ITC in Malta. Subsequent sale from the warehouse is a separate transaction.
Import and local resale
If a company imports goods in its own name and then sells them in Malta, the importer, deduction and VAT payable must be consistently identified.
B2C Sales
Shipping from another EU country to a Maltese consumer may enter the OSS. Sales from stock already in Malta are local.
Delivery with assembly
The place of delivery is usually where the goods are installed. It is important to determine whether VAT will be settled by the buyer or the foreign supplier.
When might a foreign company need an MT VAT number?
Check the registration before storing, ITC of own stock, import and further sale, ITC or local activity for which the company itself is liable for Maltese VAT.
Article 10: full registration
This is the basic model for taxpayers making taxable or exempt supplies with the right to deduct. The number has the MT prefix and allows for the deduction of eligible input VAT.
Article 11B: SME system
A qualifying company from another EU country can apply for an exemption with an EU turnover of less than €100,000 and a Maltese turnover of up to €35,000. The exemption requires prior notification and approval.
Article 12: certain acquisitions
This applies, among other things, to intra-Community acquisitions (ICAs) exceeding EUR 10,000 for entities without Article 10, as well as to foreign services for which the purchaser settles VAT. It does not replace full registration for local sales.
Documents, MT number and step-by-step procedure
A separate guide explains the registration obligation, Articles 10, 11B and 12, documents, access to the portal, representation and activities after obtaining the number.
Reverse charge in Malta – when does the buyer settle the tax?
Reverse charge transfers the obligation to calculate VAT from the seller to the buyer. It may limit the foreign company's obligations, but only for a specific transaction that meets the conditions.
Typical B2B service
A foreign service provider covered by the general rule will not normally register solely for the service if the Maltese taxpayer correctly accounts for VAT as the purchaser.
Selected local non-resident deliveries
This mechanism may apply to specific deliveries by a foreign seller. It's important to verify the status of both parties, the involvement of any permanent establishment, and the specific legal basis.
What does reverse charge not cover?
It does not automatically remove the effects of own warehouse, ITC, IDT, import, B2C sales or activities where the seller is still the taxpayer.
Importing goods and import VAT in Malta
Importation occurs when non-EU goods are released for free circulation in Malta. It is a separate event from the subsequent sale, so clearance and the sales invoice must be considered separately.
What to arrange before check-in?
- who will be the importer in the customs declaration,
- what EORI number will be used,
- where the goods will be released for sale,
- what is the customs value and VAT basis,
- what rate applies to the goods,
- how subsequent sales will be settled.
The deduction depends on the document and purpose
VAT registration and EORI have different functions. Merely incurring an economic expense does not entitle the company to deduct VAT if the company is not listed as the importer or the goods are sold without the right to deduct VAT.
The customs document, books, payment and subsequent sale should indicate a consistent entity and the same flow of goods.
VAT returns in Malta - map of obligations
The form and settlement rhythm depend on the registration basis. Below is just a guide; specific fields, adjustments, payments, and additional reports are described in a separate guide.
VAT Return
The standard period is usually a quarter, but MTCA may assign a monthly, annual, or non-standard period. The deadline is generally one month and 15 days from the end of the period.
SME Annual Declaration
An entity benefiting from the exemption submits the appropriate annual declaration. It does not charge VAT and generally does not deduct tax from the costs of this activity.
Acquisitions and reverse charge
Separate declarations or payment notifications apply to specific intra-Community acquisitions and foreign services billed by the buyer.
VAT Return, specific fields, deadlines and corrections
The full guide explains nil declarations, payments, Recapitulative Statement, EU transactions, imports, reverse charge, errors and pre-shipment inspection.
VAT e-Services, VIES, Intrastat, OSS and IOSS
Maltese VAT isn't just about VAT returns. EU reporting, statistical obligations, invoicing, and e-commerce procedures all operate in parallel and must align with logistics.
VAT e-Services
The MTCA portal is used to submit the appropriate forms and monitor deadlines. Access should be available before the first reporting obligation.
Recapitulative Statement and VIES
Certain EU transactions require summary information. Verify the counterparty number in the official VIES system and retain the verification result.
Intrastat
Once the relevant import or export thresholds are exceeded, statistical obligations may arise that are independent of the VAT return and recapitulative statement.
OSS and IOSS are limited in scope
OSS can cover qualifying B2C sales and selected services. IOSS applies to certain import distance sales in shipments up to €150. The MTCA provides official information on OSS and IOSS.
Tax invoice, receipt and correction note
The document type depends on the sale and customer status. The system should distinguish between rates, 0%, exemption, IDT, export, reverse charge, OSS, and IOSS. MTCA describes the rules for invoices, receipts, and credit notes.
VAT deduction and refund from Malta
The correct path depends primarily on whether the company is or should be registered in Malta and whether the purchase is a sale giving rise to the right to deduction.
Taxpayer Article 10
Qualifying VAT is deducted in the declaration for the appropriate period if the expense is used for business purposes, gives the right to deduct and is properly documented.
A company from another EU country
An unregistered taxpayer who meets the conditions may use the refund procedure for entities established in another EU country.
Non-EU entity
It verifies the separate procedure for non-EU entrepreneurs and the conditions regarding documents, taxpayer status and the absence of local activities requiring registration.
The most common VAT errors in Malta
The greatest risk arises when sales, logistics, invoicing and reporting are analyzed separately, without a single transaction map.
Transaction model
- waiting for €35,000 despite local action,
- sending the stock before WNT analysis and registration,
- OSS treated as a replacement for local VAT,
- omitting subsequent sales after import.
Rates and documents
- the rate selected before determining the place of taxation,
- confusing 0% with exemption without the right to deduction,
- reverse charge only based on the customer number,
- deduction of VAT by an entity not designated as the importer.
Reporting
- omission of transactions without VAT due,
- no zero declaration with active obligation,
- the same sales reported twice in OSS and locally,
- lack of reconciliation of declaration, VIES and warehouse.
Malta VAT 2026 – key conclusions
Malta applies a standard rate of 18%, reduced rates of 12%, 7%, 5%, and 0%. However, for a foreign company, the place of taxation and the entity obligated to settle are more important than the rate itself.
Flow first
Identify the product, service, warehouse, transport, recipient and importer before selecting a rate.
Then the MT number
Warehouse, WNT, import, WDT or local sale may require Article 10 before the first operation.
Finally, reporting
Invoices, declarations, VIES, OSS, IOSS, Intrastat and transport documents should describe the same transaction.
Malta VAT 2026 – Questions and Answers
Frequently asked questions about rates, MT number, warehouse, reverse charge, OSS, declarations and refund of Maltese VAT.
The standard rate is 18%. Malta also applies rates of 12%, 7%, 5%, and 0%, as well as exemptions with no right of deduction.
Not always. Registration may be necessary when a company is solely responsible for Maltese VAT, for example, when selling from a warehouse, importing and resell, importing goods from Malta, or making local deliveries. Reverse charge, OSS, or approved Article 11B only limit the liability within their scope.
There is no single, universal threshold for all non-residents. The €35,000 limit applies to the Maltese SME system. Without an effective exemption, the obligation may arise from the very first transaction for which the foreign company is liable for VAT.
A warehouse often leads to the WNT of own goods and subsequent local sale or IDT. The warehouse address alone doesn't resolve every situation, but inventory flow should be analyzed before the first shipment.
No. It can pass on VAT to the customer for a specific delivery or service, but does not automatically settle warehouse, import, ICT, IDT or B2C sales.
Only for transactions covered by the procedure. OSS does not replace registration resulting from own stock, intra-Community acquisition, import, or local sale of goods from a Maltese warehouse.
No. A VAT number alone does not create a permanent location. Its existence depends, among other things, on durability and appropriate human and technical resources.
No. The Maltese 0% exemption is an exemption with the right to deduct subject to conditions. An exemption without the right to deduct essentially blocks the recovery of VAT on related costs.
An Article 10 taxpayer settles the tax period assigned by the MTCA. The standard period is usually quarterly, but monthly, annual, or non-standard periods are also possible. Valid dates should be checked in VAT e-Services.
Yes, if it meets the conditions for the appropriate procedure. An Article 10 taxpayer deducts eligible VAT on their return. An unregistered company can check the procedure for EU or non-EU entities, provided they are not required to register locally.
This text is for informational purposes only and does not replace an individual tax assessment. For VAT in Malta, it's important to check taxpayer status, place of taxation, transaction model, reverse charge, VAT import, OSS/IOSS, right of deduction, and current reporting obligations to the Malta Tax and Customs Administration.
