VAT Calculator Malta (2024) | Standard VAT Rate: 18%
The standard VAT Rate in Malta is 18%. Now you can calculate the vat bill with our Vat Calculator Malta.
VAT Calculator Malta
Malta uses the Value Added Tax (VAT) system to all products and services. The normal VAT rate for Malta is 18 percent and there are reduced rates of 7.5% or 5% and 0% in certain industries. No matter if you’re a company owner or a consumer understanding the VAT system of Malta is crucial to ensure precise tax billing and tax compliance.
How to Use the VAT Calculator for Malta
It is easy to calculate VAT by using this calculator. Malta Tax Calculator
Add VAT
Formula:
VAT Amount = (Original Price x VAT%) / 100 Net Price = Original Price + VAT Amount Remove VAT
Formula:
VAT Amount = Original Price - (Original Price x 100 / (100 + VAT%)) Net Price = Original Price - VAT Amount Our calculator will automatically determine what is the most current Maltese tax rate (18 18%). It is also possible to input the rate you would like to use if it is required.
Malta VAT Rates Overview
| Rate | Applies to |
|---|---|
| 18% (Standard Rate) | The majority of goods and services |
| 7% | Hotel rooms |
| 5% | Electricity and printed materials (books and newspapers) Certain products for food medical aids |
| 0% (Zero-rated) | Public transport, inter-island travel exports and foreign passport services |
Malta VAT Registration Categories
Malta provides three ways to register for VAT:
1. Article 10 (Full VAT Registration)
For companies that exceed the threshold for VAT. This permits:
- The charging of VAT on sales
- The VAT claim on purchases
2. Article 11 (Exempt Registration)
Small businesses that are not above the threshold for VAT. This is a reference to:
- There is no VAT on sales.
- There is no VAT refund on purchases
You must stay in Article 11 for 36 months before reverting into Article 10 if the threshold is not reached.
3. Article 12 (Intra-EU Acquisition Registration)
Mandatory if intra-community acquisitions are greater than EUR10,000. This applies to:
- Tax-paying and non-taxpaying persons alike.
- Customers who purchase from EU suppliers
Malta VAT Thresholds by Activity
| Business Type | Threshold Range (EUR) |
|---|---|
| Goods Supply | 28,000 – 35,000 |
| Service Supply | 19,000 – 24,000 |
| Other Economic Activities | 12,000 – 14,000 |
How VAT Works in Malta
Input VAT
VAT refunded on business purchases (materials products, services, or materials). It is reclaimed when registered in accordance with article 10.
Output VAT
VAT is charged on sales made to customers.
Example: Add VAT
- Original Price: EUR100
- VAT (18%): EUR18
- Total Price: EUR118
Example: Remove VAT
- Total Price: EUR118
- VAT Extracted: EUR18
- Net Price: EUR100
Items that are not eligible for VAT Reclaim (Input VAT)
Certain purchases are excluded from VAT deductions, even if they are covered under Article 10:
- Tobacco and alcohol
- Entertainment expenses
- Art and decorative objects
- Car leasing
- Maintenance or repair of scrap items
VAT-Exempt Services in Malta
There is no VAT charged, and there is no VAT that can be reclaimed.
- Public entities are responsible for water supply
- Financial and insurance
- Welfare and health services
- Commercial land supply
- Education
The VAT de registration process in Malta
To exit VAT registration:
- Pay off any VAT debts that are still outstanding.
- Contact the Customer Care Unit of the Commissioner for Revenue (CFR).
- Submit a de-registration request.
All dues must be paid prior to approval being granted.
FAQ: Malta VAT
Q: Do you consider input VAT to be an expenditure?
A: The answer is no. Input VAT is refundable according to Article 10. It lowers the tax burden overall in the event of a correct reporting.
Q: Do restaurants have a VAT exemption on Malta?
A: The answer is no. Restaurants are taxed on VAT based upon their turnover. The tax is not exempt for them.
Q: When was VAT first introduced to Malta?
A: The VAT system was initially established during the year 1995 and then significantly modified following Malta became a member of the EU in 2004.
Q: What can I do to find out more about the VAT laws on Malta?
A: Go to the Official CFR website for the complete guideline as well as tax-related forms.
