Welcome to Malta VAT Calculator – Calculate Maltese VAT (It-taxxa fuq il-valur mizjud) 2025
MALTA VAT CALCULATOR
In Malta, Value-Added Tax (It-taxxa fuq il-valur mizjud) is applied to various goods and services at different rates.
✅Standard VAT Rate: 18% which applies to most goods and services unless exemptions or reduced VAT rates are specified.
✅ Reduced VAT Rate: 7% which applies to specific services like tourist accommodation and the use of sports facilities.
✅ Second Reduced VAT Rate: 5% applies to goods and services such as confectionery, medical equipment, printed materials, electricity, and accessories for disabled people. This rate also applies to the import of artworks, collectors’ items, and antiques.
✅ Special Reduced VAT Rate: 12% was introduced in 2024 for specific activities, such as chartering services under certain conditions, as well as a few other specific services.
✅Zero VAT Rate (0%): for certain supplies and services, including exports, intra-Community supplies, and basic food products (excluding catering services) and some pharmaceutical products.
✅VAT-Exempt Services: including health services, education, postal services, sports activities, lottery, broadcasting, and water supplies.
Malta Value Added Tax (VAT)/Maltese (It-taxxa fuq il-valur mizjud)
Malta Value Added Tax (VAT), or Taxxa fuq il-Valur Mizjud in Maltese, was introduced in 1998 as part of the country’s alignment with the European Union VAT system. The Maltese VAT legislation, known as the VAT Act, Chapter 406, replaced the previous excise tax system on imports, products, and services. This legislation is in line with the EU VAT Directive, ensuring that Malta’s VAT system harmonizes with other EU member states. The Commissioner for Revenue is the authority responsible for administering and collecting VAT in Malta, making sure businesses comply with VAT regulations.
In Malta, businesses engaging in taxable activities, such as sales, purchases, and subcontracting operations, are required to have a Maltese VAT number. This number allows them to report VAT transactions, including VAT incurred, and remain compliant with local VAT laws. Foreign companies involved in intra-community supplies of goods and services from outside Malta must follow reverse charge regulations, ensuring proper tax compliance when suppliers are not established within the country. These measures help maintain a well-regulated and transparent VAT system in Malta.
Malta Value-added Tax Rates Explanation’s
Malta provides a range of VAT rates, including a standard rate and reduced rates tailored for specific goods and services, ensuring fair taxation across various sectors of the economy. These rates are designed to accommodate different industries and consumer needs, from essential items to specialized services, allowing for flexibility and compliance with both local and EU VAT regulations.
Malta Standard VAT Rate
The standard Malta VAT rate is 18%, which applies to most goods and services in Malta. As per Maltese VAT laws, this rate is used for general sales, imports, and services that do not fall under any reduced VAT categories or exemptions. Maltese (It-taxxa fuq il-valur mizjud) is in line with the European Union VAT Directive, ensuring consistency across EU member states.
The 18% standard rate is commonly applied to consumer goods, professional services, and other everyday transactions. It also applies to imports and sales of tangible products unless specific exemptions or reduced rates apply, such as for food, medical supplies, and tourism-related services.
Reduced VAT Rate in Malta
The 7% reduced VAT rate in Malta applies to specific goods and services, primarily in the tourism and leisure sectors. This rate is commonly applied to tourist accommodation, including hotels and similar services, as well as the use of sports facilities. The 7% rate helps make travel and recreational services more affordable for both residents and visitors in Malta, promoting the growth of the tourism industry.
Under Maltese VAT laws, this reduced rate is designed to support key sectors that contribute significantly to the local economy. By applying the 7% VAT rate to tourism-related services, Malta ensures compliance with EU VAT regulations while boosting its competitive position within the global travel and tourism market.
Second Reduced Malta VAT Rate
The 5% reduced VAT rate in Malta applies to specific goods and services as part of the country’s efforts to support essential sectors. This reduced rate is particularly applied to items like confectionery, medical supplies, printed materials, and certain energy products such as electricity. The 5% rate is designed to make these essential items more affordable while ensuring compliance with EU VAT regulations.
Maltese Special Reduced VAT Rate
The 12% special reduced VAT rate in Malta was introduced in 2024 to support specific industries and activities. This rate applies to services related to chartering and certain other activities, providing a more favorable tax treatment for businesses in these sectors. The introduction of this reduced rate aims to enhance Malta’s competitiveness in key markets, such as the maritime and tourism industries.
Zero Rated VAT in Malta
The Zero VAT Rate in Malta applies to specific goods and services, where no VAT is charged on transactions. Commonly referred to as the 0% VAT rate, it is used for essential supplies like exports, intra-Community supplies, and certain food products (excluding catering services). This rate also applies to some pharmaceutical products and other goods and services deemed necessary for public welfare.
VAT-Exemption in Malta
VAT-Exempt Services in Malta refer to specific services that are not subject to VAT charges, meaning no VAT is applied during transactions. These include essential services such as healthcare, education, postal services, sports activities, broadcasting, and certain lottery services. The VAT exemptions are designed to reduce the financial burden on sectors that directly benefit the public and align with EU VAT regulations.
Customs Duties
Malta apply Customs Duties on goods imported from outside the European Union (EU) and are governed by a Customs Code aligned with EU requirements. This ensures that all customs procedures are in line with the European Community’s trade regulations. In addition, Malta Free Zones Act regulates various activities within the free zones, offering incentives and tax exemptions for businesses involved in production, logistics, and warehousing.
Excise Duties
Excise Duties are imposed on specific goods like energy products, alcoholic drinks, manufactured tobacco, and mobile telephony services, ensuring proper tax collection for these sectors. Meanwhile, Property Taxes in Malta do not include wealth taxes but focus on taxes associated with property transfers. Transfers of immovable property are subject to property transfer taxes, typically with a withholding tax (WHT), with rates ranging from 8% to 12% depending on the circumstances.
Stamp Duty
Stamp Duty in Malta is applied to property transfers and certain marketable securities. The standard rate for property transfers is 5%, though exemptions or reduced rates may apply in certain cases, such as transfers within family members or corporate restructuring.
Payroll Taxes
Regarding payroll taxes, employers are required to withhold income tax and social security contributions from employees’ salaries. Social security contributions are calculated at 10% for employers and employees, with set weekly contribution rates for different income brackets. Self-employed individuals must pay social security contributions based on their annual net income, with varying rates depending on their birth year.