The VAT Act governs Malta’s value-added tax. It works hand in hand with its subsidiary legislation, which is concerned with company and individual VAT registration. As per the law, natural people and legal organisations that carry out economic activities are taxable. There are different registration types in Malta. Below are some activities that are categorised under the supply of goods and products and, therefore, liable for VAT.
• Supplying personal services
• Exploiting a property with the intention of getting revenue continuously
• Providing subscription facilities
VAT Registration Types in Malta
There are three categories that individuals and corporations are mandated to register for VAT in Malta when supplying goods and services. They include those who register for VAT under:
• Article 10
• Article 11
• Article 12
Any company that registers for value added tax under Article 10 gets a VAT number that has an MT prefix. They can also use it as an EORI number. Those registering under the other two articles get VAT numbers that do not have an MT prefix. There are different thresholds that the legislation imposes on each of the above categories. These include:
Activities involving the supply of goods and services with annual turnovers with a 35,000 euros entry threshold and 28,000 euros exit threshold
Activities concerned with the supply of services and goods attracting a low VAT with an entry and exit thresholds of 24, 000 euros and 19,000 euros respectively.
Other economic activities with an entry and exit thresholds of 14,000 euros and 12,000 euros respectively
If you register under article 10, you will need to:
• Issue tax invoices on every supply you make
• Submit your VAT returns for three months levy period not later than 6 weeks after the tax period expires or as the commissioner directs
For those whose turnover does not surpass the stipulated entry threshold, they may register for value added tax as exempt. This is normally under article 11. This means that you do not charge VAT on your supplies. Also, it will not be possible to claim back the Vat that you incur while undertaking your economic activity. Those registered under article 11 are required to submit a declaration when a calendar year comes to a close. You should submit this on 15th March of the next year.
Those that acquire intra-community goods while in Malta with a value of more than €10,000 for the whole year should register for value added tax under article 12. They are also required to pay for VAT every time they acquire such intra-community goods.
The Required Documents For VAT Registration
When registering for VAT in Malta, you are supposed to submit the following documents:
• A copy of your ID or a valid passport for natural persons
• ID copies of the company’s representative for corporations
• Statutory documents copies for companies and partnerships
For all VAT registration types in Malta, the process takes between three to four weeks.
