VAT Rates in Malta
Under the VAT Act in Malta, the standard rate of VAT is 18%, as stated in Article 19,
Malta’s VAT Act also includes a schedule called the Eighth Schedule, which specifies two reduced VAT rates: a first reduced rate of 7%, a second reduced rate of 5%. and an intermediate VAT rate of 12%
Read more regarding VAT rates in Malta in our comprehensive guide below.
VAT Rates in Malta
Standard VAT rate |
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| A standard VAT (Value-Added Tax) rate is each country’s most typical VAT rate applied to goods and services. It is applied to the majority of goods and services, with some exceptions, such as essential items or other specific goods or services that may have a reduced rate and are presented below. | |
| Rate | Good or Services |
| 18% | All goods or services not included in the reduced rates table below
|
| Reduced VAT rates | |
| Certain goods and services are eligible for reduced VAT rates. as essential items or other specific goods or services that may have a reduced rate and are presented below. | |
| Rate | Good or Services |
| 7% | “First Reduced rate” |
| The rental or provision of tourist accommodation that has been licensed; | |
| The utilization of sporting facilities. | |
| 5% | “Second reduced rate” |
| Electricity; | |
| Confectionery and similar products | |
| Certain medical accessories; | |
| Books, audio books, and printed materials supplied in physical or electronic form, excluding those that are primarily for advertising, video content, or music; | |
| Goods intended exclusively for the use of the disabled; | |
| Importation of works of art, collectors’ items, and antiques; | |
| Minor repairs of bicycles, shoes, leather goods, clothing, and household linen | |
| Domestic care services, such as home help and care for the young, elderly, sick, or disabled | |
| Admission to museums, art exhibitions, concerts, and theaters | |
| 0% | “Intermediate Rate” |
| Renting a leisure vessel for a period not exceeding five weeks, inclusive of prior rentals of the same or similar vessels in the past year; | |
| Specified healthcare services that are not exempt, encompassing those offered by a fitness center or comparable establishment; | |
| Oversight and administration of financial securities; | |
| Administration of loans and loan assurances by an entity separate from the lender; | |
| 0% | Zero rated products |
| Exports | |
| Supplies of goods to persons taxable in another EU member state, or of a new means of transport to non-taxable persons; | |
| International transportation of people and goods, along with related services; | |
| Certain commercial, rescue, or military sea vessels and commercial aircraft, along with services supplied to them; | |
| Investment gold (including gold supplied to the Central Bank of Malta); | |
| Food (excluding restaurant catering); | |
| Pharmaceutical goods; and | |
| Certain public transport services. | |
Exempt From VAT |
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| Transfers of immovable property and the leasing of immovable property, except for property licensed under the Malta Travel and Tourism Act, designated parking sites, and some short-term business leases; | |
| Certain insurance services; | |
| Certain credit, banking, and financial services, such as granting and managing loans, share brokerage activities, investment management services, and currency exchange transactions. However, the exemption for transactions in shares, debentures, and other securities only covers negotiation and does not include management and safekeeping or documents establishing title to goods or certain interest in or rights over immovable property. Note that virtual currencies are subject to separate regulations; | |
| Cultural and religious services; | |
| Approved sports and recreational services provided by nonprofit organizations; | |
| Certain services provided by nonprofit organizations, such as trade unions or philanthropic organizations, to their members; | |
| Lotteries and approved gambling supplies | |
| Certain public postal services; | |
| Health and welfare services, which generally include medical or surgical treatment; | |
| Many educational services; | |
| Supplies of goods where the supplier is not entitled to claim input VAT credits; | |
| Non-commercial broadcasting services; and | |
| Supply of water services by a public authority. | |
Various countries announced short-term adjustments to their VAT rates in response to COVID-19. This resulted in reductions to the VAT rates on products and services sold by businesses that were particularly hit hard by the pandemic’s economic fallout, such as the hospitality sector. To learn more about the implications of COVID-19 in Malta, please visit our news section by clicking here.
Last Updated: 24/01/2024
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
