Malta - VAT Law Amendments


Malta has announced that there will be an increase in the VAT registration threshold and new VAT Grouping rules.

With regard to the VAT registration threshold the VAT Act has been amended and provides for an increase in the turnover threshold for eligibility to register for VAT as a small undertaking. This will apply from July 1st 2018. Taxable persons with economic operations involving a supply of services with a high value-added and an annual turnover of no more than €20,000 may opt to register for VAT as a small undertaking in terms of article 11 of the VAT Act. Consequently, such persons are exempt from charging VAT. This is an increase of €6,000 from the current threshold of €14,000.

Meanwhile, as of June 1st 2018, the newly implemented VAT Grouping regulations entered into force. Provided that entities satisfy the necessary criteria, groups of entities are provided with the possibility of forming a VAT Group. VAT Grouping is available in various EU member states and allows members of a particular VAT Group to avoid irrecoverable VAT due on charges made between such members. In addition to other necessary conditions, a VAT Group may be established where at least one of the applicants is recognised by the Malta Financial Services Authority (MFSA) or the Malta Gaming Authority (MGA).

Should you require any VAT assistance in Malta, or require any international VAT assistance, please contact us.



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