Malta VAT Rates 2026

Malta VAT Rates at a Glance

What is VAT Called in Malta?

In Malta, value added tax is officially known as Taxxa fuq il-Valur Miżjud (VAT). It is administered by the Commissioner for Revenue (CFR).

Like all EU member states, Malta operates VAT under the EU VAT Directive (2006/112/EC), which sets the framework for standard and reduced rates, exemptions, and the reverse charge mechanism across all 27 EU countries. The Commissioner for Revenue is responsible for VAT registration, returns, enforcement, and issuing VAT rulings.

Reduced VAT Rate in Malta (7%)

Malta applies a reduced VAT rate of 7% to the following categories of goods and services (subject to the specific conditions of Malta VAT law):

• ✓Hotel accommodation and similar establishments
• ✓Minor repair services (clothing, bicycles, shoes)
• ✓Confectionery for medical use

Additionally, Malta applies a super-reduced rate of 5% to:

• ✓Electricity supply
• ✓Medical accessories and equipment
• ✓Printed matter (certain)
• ✓Food, water and pharmaceuticals supplied to ships

Note: Reduced rate eligibility depends on the specific nature of the supply and how goods or services are classified under Malta VAT law. Always verify classification with a local VAT adviser before applying a reduced rate.

VAT Registration in Malta

Once registered, businesses are issued a Malta VAT number (MT + digits). This number must appear on all invoices and be verified on the EU VIES database before zero-rating intra-EU B2B supplies.

Non-EU businesses are generally required to register for Malta VAT with no registration threshold — the first taxable supply in Malta triggers an immediate registration obligation. Non-established businesses may need to appoint a local fiscal representative depending on the nature and location of their business.

Filing VAT Returns in Malta

VAT returns in Malta must be submitted electronically via the Commissioner for Revenue portal. Most member states require payment of VAT due simultaneously with the return submission — check whether Malta requires separate payment instructions or if bank debit is automatic.

VAT Invoice Requirements in Malta

To be valid for VAT recovery purposes, Malta VAT invoices must include the following mandatory information (consistent with Article 226 of the EU VAT Directive, plus any additional national requirements):

1. 1Supplier name, address and Maltese VAT number (MT + 8 digits)
2. 2Customer name, address and VAT number (B2B)
3. 3Date of invoice and sequential number
4. 4Description of goods/services
5. 5Net amount, VAT rate, VAT amount
6. 6Total amount payable

Simplified invoices (without all fields above) may be issued where the total amount does not exceed €100 excluding VAT, subject to Malta's national rules on simplified invoicing.

Reverse Charge Mechanism in Malta

Malta applies reverse charge to B2B services from abroad, construction services between registered persons, and supplies of certain electronic devices above threshold.

Under the reverse charge, the recipient of the supply (rather than the supplier) is responsible for declaring and paying VAT. The recipient self-accounts for VAT on their Malta VAT return — declaring both output VAT (as if they had charged it) and input VAT (which they may recover subject to normal rules). The supplier issues an invoice without VAT with a note such as "Reverse charge — Article 196 EU VAT Directive."

EU OSS and Malta

Maltese businesses register for EU OSS via the CFR's online services portal (cfr.gov.mt). Malta's online gaming and financial services sectors are significant OSS users.

Under the EU's One Stop Shop (OSS) scheme introduced in July 2021, businesses selling digital services or goods B2C to customers in Malta (and other EU countries) can register in a single EU member state and file a single quarterly return covering all EU consumer sales. OSS avoids the need to register for VAT separately in each of the 27 EU member states where you have customers. The Malta VAT due on your OSS return is paid in your registration country and forwarded to Malta's Commissioner for Revenue.

Malta VAT: Background & History

Malta is the EU's smallest member state by population and area, joining in 2004 and adopting the Euro in 2008. Malta has the EU's lowest standard VAT rate at 18% alongside Luxembourg. Malta is a major hub for online gaming, financial services, and yacht registration — all with complex VAT implications. Malta's broad zero-rating of food and pharmaceuticals reflects its island status and reliance on imports for basic necessities. The iGaming sector alone accounts for a significant portion of Maltese VAT-registered businesses.

Practical VAT Compliance Tips for Malta

Frequently Asked Questions — Malta VAT

Malta VAT Tools