The Maltese VAT Act is based on the VAT Directives of the European Union. Value added tax is levied on the supply of goods and services in Malta. Every taxable person, i.e. a person engaged in an economic activity, have to register for VAT and charge VAT where applicable.
The standard value added tax rate is 18%. A reduced rate of 5% applies to certain supplies such as confectionary items, medical accessories. The same applies for items for the exclusive use of the disabled. As from 1st January 2011, a 7% rate is applicable to the supply of specific types of accommodation. Other supplies such as international transport of goods and services, gold, food for human consumption and pharmaceuticals are 0%.
Our wide range of indirect tax services includes vat compliance, VAT planning and advice to identify potential problem areas to indirect tax planning.