People or entities who are registered under Article 10 need to pay VAT once every quarter. Other payment periods may apply according to VAT registration.
A statement of all supplies made by a service provider to other member states within the EU.
VAT can be recovered upon proving that input tax was chargeable on supplies of goods or services as well as intra-community acquisitions of goods intended for use during economic activity.
The local rates are; 0%, 5% (reduced rate), 7% (on provision of accommodation, including exceptions), 18% (standard rate).
The completion of a VAT registration form provides the applicant with a VAT Number. Need help filling out the form? Get in touch!
An economic activity may consist of; any trade or business, any profession, vocation or provision of personal services, provision by a club or organisation, the exploitation of tangible and intangible property and the admission of people to any premises for a consideration.
Here, supplies made between EU member states are facilitated. When a person makes an Intra-community acquisition of goods, the net value of the goods must be reported in Box 3, with the relative VAT due on such acquisition at the applicable rate of 18%, 5% or Nil (if an exempt good) reported in Box 6. Reporting the intra-community acquisition in Box 3 and the applicable amount of VAT in Box 6 as output tax makes the person liable to VAT, but the same value and tax may be reported as an expense and related input tax subject to the normal rules of credit for input tax (Box 9 and Box 10). The same applies for goods and services received from the EU or from a country outside the EU when these are taxable in Malta.
A Tax Invoice is exchanged between people registered under Article 10 when supplies are purchased. On the other hand, when a registered individual supplies to a non-registered individual a Fiscal Receipt is issued.
Admission tickets to events may also be accepted as Fiscal Receipts provided that prior approval in writing is sought from the Department. The VAT permit number issued by the Department should be shown on the ticket.
A tax invoice issued by a registered person who is not classified as an exempt person should contain the following information:
1. An identifying number of the invoice
2. Date of supply
3. Name, address and VAT registration number of supplier
4. Name, address and VAT registration number of customer
5. Details of the supply made
6. The total price (before any discount)
7. The rate of discount (if any)
8. For each supply made, the rate of tax chargeable thereon and the price charged excluding VAT
9. The tax chargeable at each rate
10. Total VAT chargeable
A fiscal cash register receipt can be valid as a tax invoice if it includes the VAT Registration number of the customer.
Persons who provide exempt without credit supplies (e.g. insurance companies and education and health and welfare services) and persons who are classified as exempt persons cannot claim back input VAT incurred on purchases relating to their business. Get in touch a detailed list of items with blocked Input VAT.
Individuals registered under Article 11 are deemed exempt, therefore their VAT number will not feature an MT prefix. Exempt people are not to charge VAT on sales and are not entitled to claim back VAT on expenditure. If an exempt person intends to make intra-community acquisitions; they would need to register under Article 12. Fiscal Receipts and Tax Invoices will still need to be issued for yearly VAT declaration purposes.
Services are taxable either where the customer is established or where the supplier is established it also depends on the type of goods or service received. Get in touch for more information on the type of supplies, goods or services affected by this clause.
Letting of property is exempt without credit which means that no VAT shall be charged on rent. The following cases are exceptions to this rule:
- The letting of property licensed by the H.C.E.B.
- The letting of property by a limited liability company to a person registered under Article 10 for his economic activity.
- Licensed car parks.
- Letting of permanently installed machinery and equipment.
No, persons supplying exempt without credit services such as doctors and teachers are not required to issue fiscal receipts for VAT purposes, but are still obliged to issue an ordinary receipt as required by the Income Tax Act.
No, a taxable person can have two or more different trading activities using the same VAT number. However, one has to inform the VAT department in writing should new ventured be taken on.
Any taxable person performing an economic activity is liable to register for VAT either under Article 10 or Article 11 depending on whether your turnover exceeds the established thresholds.
In order to de-register from VAT you are required to fill in the VAT de-registration form. An application for de-registration cannot be processed unless you have all VAT returns and payments up to date and any pending matters settled with the VAT Department.
In order to re-activate your old VAT registration number you should inform the Department in writing stating your request.
Yes, provided that it is a commercial vehicle used in the furtherance of your economic activity. The department may however, after assessing and verifying factors such as the ratio of business use to private use, the extent of your declared turnover vis-a-vis your capital expense in purchasing this vehicle and the need of the purchase of this vehicle in relation to your economic activity, adjust your claim for input VAT as it deems necessary.
Qualifying as a VAT exempt person signifies that your income falls within the legal threshold of exempt individuals. You can check whether you belong to this classification by calculating your income over the last 12 months at the end of every quarter. Should you envisage an increase in your income; it is your duty to inform the VAT Department as soon as it become apparent. There is a 30 day period in which this needs to reach the said department.
For de-registration to be affected you must first settle all pending issues with the Department. If you continue to receive VAT forms and monthly balance statements after having applied for de-registration, the Department needs to be contacted and made aware of this issue.
Once all pending issues have been settled, action for de-registration will be finalised.