Is fiscal representative compulsory in Malta ?
Malta is a European Union Member State. If your business is established in another European Country appointing a tax agent or VAT representative is not compulsory.
Malta no REQUIRES a tax representative for non EU businesses.
When and how do you have to register for VAT as taxpayer?
Registration in Malta is made in two ways. The first layer is a simple identification for tax purposes : you get your TIN (Tax Indentification Number). It may be for customs needs (your business buys/sells within exempted areas or bonded warehouses, or IntraCommunity purchases. It is just as simple and limited to a Tax number.
A second layer is requested for businesses triggering « right to deduct » and this means the business is performing operations for which it has rights and duties :
– the business has to submit periodical returns to report local operations
– the business has no more access to VAT refund through transnational web portal or 13th Directive, but reports VAT on purchases directly on the form(s) (Online form) provided by in Malta like other established companies.
This « trigger » is activated when :
– you deliver goods to individual particulars in Malta and do not / cannot opt for the Distance Sales Threshold relief.
– you move goods from Malta to another State, being third country or Member state.
In most cases your VAT number in Malta will be similar to MT12345678.
What is the threshold for deliveries to particulars individuals in Malta ?
Distance selling as per art. 34 of VAT Directive (and taxable persons not entitled to deduct input tax and by non-taxable legal persons as per art. 3(2)(a) of the VAT Directive) : EUR 35,000
EUR 10,000 (acq. exempted pers.)
Once registered for VAT with right to deduct, which VAT should your business apply in Malta ?
Standard VAT rate in Malta is 18%, while intermediate rate is -. On the other hand, reduced rate is 5% and 7%.
Application of Article 37 and 109 to 122 of the VAT Directive in Malta : exempt; exempt with credit
Please note that we open access to a detailed table of VAT rates per goods and services in Malta :
See our section https://becompliant.tax/vat-rates-malta
What is the scope of a fiscal representative in Malta?
Fiscal representative should always diagnose your operations in Malta and establish clearly and by written :
1- What your transactions are
2- Where your transactions must be reported : territoriality
3- what are your liabilities in the reporting territory : VAT? ECSL? Intrastat?
4- what are the conditions in which you must charge or exempt VAT in your invoices
5- provide you with a reporting agenda
What form for VAT returns and when to submit in Malta ?
Your fiscal representative in Malta will have to submit periodically on your behalf.
The VAT form you are expected to submit in Malta : Online form
In Malta, the periodicity of VAT (locally called It-taxxa fuq il-valur mizjud) is as follows :
Quarterly VAT returns in Malta are due 15th of the 2nd following month, always that Default : Commissioner for Revenue may prescribe longer or shorter periods
Your VAT payment is due : Same as return.
What are the E/ICSL a fiscal representative submits in Malta ?
The ECSL you are expected to submit in Malta : 15th day of following month
Your statistical declarations (Intrastat) in Malta : 10th business day of following month
What are the late registration penalties in Malta ?
Interest is assessed on VAT paid late. The current rate is 0.54% for each month or part of a month. The interest rate may change.
A penalty for default in submitting a tax return equals the greater of the following two amounts:
1% of the excess, if any, of the output tax over input tax for the period (disregarding any excess credit brought forward from a previous tax period and any allowable deductions)
EUR20 for every month or part of a month that the return is late
Capped at EUR250
For the filing of a tax return containing errors that are discovered during a VAT inspection, a penalty equal to the sum of the following is imposed:
20% of the excess, if any, of the correct amount of output tax over the output tax declared in the return
20% of the excess, if any, of the deductions declared in the return over the correct amount of the deductions
If an error is voluntarily disclosed before it is discovered by the VAT Department, the penalty is reduced to 10%. This reduction also applies if the person involved cooperates with the Commissioner for Revenue, accepts an agreement and pays the amounts due within one month after signing the agreement.
Where to find official information about VAT in Malta
Malta transposed the European Directive into national regulation
Act XXIII of 1998 (Value Added Tax Act) as amended by subsequent acts and legal notices..
The Revenue administration responsible for VAT in Malta is :
Ministry of Finance
VAT and INTRASTAT compliance in Malta
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