In Malta, laws state that a company or a person performing an economic activity must become VAT-registered within 30 days from the commencement of the same economic activity.
An economic activity is the activity carried on by a person, who is not an employee, and consisting of any one or more of the following:
- Any trade, business, profession or vocation and the provision of any personal services;
- The exploitation of tangible or intangible property for the purpose of obtaining income there from on a continuing basis;
- The provision by a club, association or organisation of the facilities or advantages available to its members for a subscription or other consideration;
- The admission of persons to any premises for a consideration.
The standard applicable VAT rate in Malta is that of 18% on the taxable value of every taxable supply of goods, services, or importation. This said, a number of sector specific VAT rates apply, whilst some other services are also considered VAT exempt.
For a detailed and thorough explanation on the VAT in Malta and the different rates according to the type of business, get in touch with IGA Group. Our team of qualified professionals can assist clients in all aspects of VAT registration, ensuring compliance with all VAT regulations and acting as a liaison with the relevant Tax authorities.