Malta’s new VAT exemption scheme

VAT was first introduced in Malta in 1995 and has undergone various changes since then. Most of these changes were made when Malta joined the European Union. The Maltese government'a main goal was to reduce the tax charges in order to attract more investors into the country.
Measures taken by Malta 
One of the first things Malta did was to increase the exemption threshold for VAT. The Value Added Tax in Malta is applied to all goods and services imported by Maltese companies.The exemption threshold for VAT was now aimed at boosting and expanding the economic activities of Malta.
How the new VAT exemption threshold works

  • The new VAT exemption threshold scheme is not compulsory, this means that all Maltese taxpayers can enter it only if they decide to.
  • All parties interested in making a profit from this new tax exemption are required to file an application form and testify that they make at most 20,000 euros annually.
  • Workers who are not earning enough money to require taxation may apply for tax exemption.
  • All workers who are not registered as exempt may apply for VAT returns and the amount of input tax to be claimed back depends on the relevant taxable supplies.

Changes brought by the VAT exemption threshold 

  • Companies are likely to benefit by getting a VAT registration number, which they can display on their websites.
  • Sole proprietorships will also be able to claim VAT from the past.
  • Individual companies are given room to improve their business image.

Professional Assistance
For more insights on Malta’s new VAT exemption Scheme, you may contact SIGTAX. Our invaluable team, which consists of expert lawyers, accountants and consultants will give you detailed information and counsel during each step.  Our lawyers can provide you with finer details on the legal aspects pertaining to VAT in Malta so that you don’t skip any necessary steps.


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