Any taxable person established in Malta shall apply to the Commissioner for Revenue to be registered for Value Added Tax (VAT) purposes. Registration must take place not later than thirty days from the date on which any taxable supply or exempt with credit supply is made.

Malta has different tiers of VAT, depending on the type of taxable supply. The VAT rates are as follows:

• 18% on the taxable value of every taxable supply of goods, services or importation
• 5% on the letting of or the provision of accommodation in premises licensed under the M.T.T.S. Act
• 5% on the supply of electricity
• 5% on specified confectionery items
• 5% on specified medical accessories
• 5% on specified printed matter
• 5 % on specified items for the exclusive use of the disabled
• 5% on the importation of works of arts, collectors’ items and antiques
• 5 % on minor repairing of bicycles, shoes and leather goods, clothing and household linen (including mending and alteration)
• 5% on domestic care services such as home help and care of the young, elderly, sick or disabled
• 5% on admission to museums, art exhibitions, concerts and theatres

Certain products are exempt and on which no VAT is charged.

There are two types of exempt supplies:

• Exempt with credit, where no VAT is charged on the value of the supply but the registered person is entitled to claim back input VAT incurred in the provision of that supply

• Exempt without credit, where no VAT is charged on the value of the supply but the supplier is not entitled to claim back input VAT incurred in the provision of that supply. In this case the supplier is not required to register with the Department.

A recapitulative statement is a periodical statement required to be made by suppliers in Malta who make intra-Community supplies of goods to customers identified with a valid VAT Registration number in another Member State. The new rules extend this requirement also to a supply of services made to a customer who is liable to pay the tax on that service in the Member State in which he is established, except when that service would be exempt in that Member State. The recapitulative statement must be submitted to the VAT Department.

Your VAT Registration number and the VAT Registration number of the person acquiring the goods or receiving the services in the other Member State.

For each person who acquired goods or received services, the total value of the supplies of goods and the total value of the supplies of services carried out, would need to be entered.

You would also need to report any transfer of goods made by you to another Member State by including both your VAT Registration number by which you are identified in Malta as the supplier and also the VAT Registration number by which you are identified in the Member State of destination as the acquirer.

The Recapitulative Statements needs to be drawn up for each calendar month and are to be submitted not later than the fifteenth day of the month following the relative calendar month. However, it is also possible to submit a Recapitulative Statement for each calendar quarter by not later than the fifteenth day of the month following the end of the quarter, where the total quarterly amount, excluding VAT, of the supplies of goods does not exceed either in respect of the quarter concerned or in respect of any of the previous four quarters, the sum of €50,000.00 (fifty thousand Euro).

Notwithstanding the above, if you make only supplies of services for which the customer is liable for payment of the tax, you may submit a Recapitulative Statement for each calendar quarter by not later than the fifteenth day of the month following the end of the quarter irrespective of the total value of services supplied. However, if you make supplies of both goods and services, the rules for the goods shall prevail.

As per the VAT Act, you would be liable to an administrative penalty. Failure to submit a Recapitulative Statement when required is also a criminal offence.