Value Added Tax

Maltese VAT legislation is harmonised with the EU VAT law. The standard rate is 18% and a reduced rate of 7% applies in respect of hotel and holiday accommodation. The law provides for a reverse charge mechanism in respect of intangible services and other supplies in terms of EU law.

Maltese VAT legislation also provides for a number of exemptions. Foreign businesses (EU and non-EU) that are not required to register in Malta qualify for a refund of VAT incurred in Malta. Our tax professionals can assist you with the following –

• VAT planning and advice on local, cross-border and intra-Community transactions
• VAT advice and planning on specific transactions, such as yacht finance leasing, onward supply relief, electronically supplied services, remote gaming and internet gaming transactions
• VAT registration and related procedures
• VAT compliance, returns and recapitulative statements
• VAT refunds
• representations before the VAT authorities and tribunals.

For further information, kindly contact Dr. Christian Farrugia