Table of Contents Malta VAT: What International Entrepreneurs Need to Know Malta VAT Registration: Step-by-Step Guide Malta VAT Forms: The Documents You Really Need Malta VAT Returns: Deadlines, Processes, and Common Pitfalls Malta VAT for EU Foreigners: Special Features and Advantages Malta VAT Costs: How Much Registration and Tax Advice Really Cost Common Mistakes with Malta VAT: What I Learned in Two Years Frequently Asked Questions Malta VAT: What International Entrepreneurs Need to Know I still vividly remember my first day at the Malta Business Registry. 9:15 a.m., armed with a stack of documents and the naïve hope that registering for VAT would be a quick affair. Spoiler alert: it wasn’t. But that’s Malta for you – which is exactly why I’m writing this article for you. The VAT (Value Added Tax) in Malta – the equivalent of German “Umsatzsteuer” – is both a blessing and a curse for international entrepreneurs. A curse, because the bureaucracy can get truly Kafkaesque. A blessing, because at 18% Malta has one of the lower EU VAT rates, and the registration as an EU entrepreneur brings you real benefits. Malta VAT Basics: Key Facts at a Glance Here are the essentials you need to know right away: Standard VAT rate: 18% (lower than Germany’s 19%) Reduced rate: 5% for certain goods and services Registration threshold: €14,000 in annual turnover in Malta EU threshold: €35,000 for EU-wide services Return deadlines: Quarterly or monthly (depending on turnover) What does this mean for you? If, as a German, Austrian, or Swiss entrepreneur, you move to Malta and do business here, VAT registration is unavoidable. But – and this is crucial – you benefit from EU-wide simplifications that third-country entrepreneurs do not enjoy. When Do You Need to Register for Malta VAT? Registration is mandatory if: You are resident in Malta and generate more than €14,000 annual turnover You provide services across the EU and exceed the €35,000 threshold You import goods into or export goods from Malta You wish to register voluntarily (often worthwhile for input VAT deductions) A practical example: My acquaintance Sarah, a UX designer from Munich, moved to Sliema in 2023. Her online business was already doing well – but in Germany. When she moved to Malta and continued working with EU clients, she had to notify the Malta VAT Department within 30 days. It was nerve-wracking but paid off – today her savvy VAT planning saves her about €2,800 a year. Malta VAT vs German VAT: A Direct Comparison Aspect Malta VAT German VAT Standard rate 18% 19% Return filing Quarterly as standard Monthly from €7,500 Small business threshold Up to €14,000 Up to €22,000 EU threshold €35,000 €10,000 Processing time 4-8 weeks 2-4 weeks Malta’s big advantage: higher EU thresholds mean fewer complicated OSS (One-Stop-Shop) procedures for smaller companies. Also, communication is in English – a boon for anyone who’s ever filled out a German tax form. Malta VAT Registration: Step-by-Step Guide Having done VAT registration for myself and now a dozen friends, I can assure you: It’s doable. Challenging, yes. But manageable. Here’s my proven step-by-step guide to save you weeks of frustration. Step 1: Gather Documents (2-3 Weeks in Advance) Before you even think about going near the VAT Department, you’ll need these documents ready: Company Registration Certificate: Your company must first be registered in Malta Memorandum & Articles of Association: Company charter Form A (Annual Return): If your company is over a year old Bank account confirmation: Must be Maltese or EU-wide IBAN Lease agreement or proof of ownership: For your business address ID cards of all directors: EU IDs are sufficient Business plan: One detailed page is enough Pro tip: The bank account is often the bottleneck. HSBC Malta needs at least 3-4 weeks to open an account, BOV is faster but pickier with international clients. Step 2: Complete the VAT1 Form The VAT1 form is your main application. Eight pages, taking roughly 2-3 hours to complete. The critical sections: Section A: Company details (copy from registration certificate) Section B: Business activities (be specific, not generic) Section C: Turnover estimates (realistic, but not too low) Section D: Return period (quarterly is recommended for beginners) Common mistake: Many write “Consulting” as their business activity. That’s not enough. Instead, write: “Digital marketing consulting for EU companies, specialized in social media strategy and campaign management.” Step 3: Submit Your Application You’ll find the VAT Department in Floriana, Evans Building, Merchant Street. Opening hours: 8:00-12:30 and 13:15-17:00. Yes, they actually take a 45-minute lunch break. Insider tip: Go before 10:00 a.m. or after 3:00 p.m. Lunchtime and early afternoons are chaos. And bring your own pen – for some odd reason, they never have any. You’ll receive a receipt with a reference number. This number is gold – without it, you won’t be able to track your application’s status. Step 4: Processing Time and Follow-ups Officially, processing takes “4-6 weeks”. In practice: – Simple cases: 4-5 weeks – Complex structures: 6-10 weeks – Problem cases: 12+ weeks You can check your status online at taxservices.gov.mt or go in person. Emails are often ignored – welcome to Malta. Step 5: Receive Your VAT Number If all goes well, you’ll get: – VAT certificate: Official document with your MT number – VAT number: Format MT12345678 (MT + 8 digits) – Login details: For the online portal You must display your VAT number on all invoices, websites, and correspondence. Don’t forget – penalties are hefty. Speeding Up VAT Registration: What Really Works From two years of Malta experience, I can tell you these things really do speed up the process: Complete paperwork: A missing stamp can mean 2-3 weeks extra English documentation: German/Italian documents must be translated Local address: P.O. Boxes or co-working spaces receive extra scrutiny Hire a tax advisor: Costs €800-1,200 but saves nerves and time What’s the takeaway? Realistically allow 6-8 weeks and start early. Nothing is more frustrating than not being able to invoice because you’re waiting for a VAT number. Malta VAT Forms: The Documents You Really Need Confession time: I almost gave up my first time – not because it was complex, but simply due to the sheer volume of paperwork. Malta loves paperwork – but don’t worry, I’ll help you cut through the jungle. VAT1: The Core Registration Form The VAT1 form is your main application and by far the most important document. Eight pages that determine your VAT future. Section-by-section breakdown: Section A (pages 1-2): Company details, addresses, contacts Section B (pages 3-4): Business activities and product categories Section C (pages 5-6): Turnover forecasts and EU trade Section D (pages 7-8): Return period and signatures Critical point: In Section B you must list NACE codes – EU-wide industrial classifications. “Consulting” is too vague; you need specific codes like “62.02.0 Computer consultancy activities”. VAT7: Notification of Changes The VAT7 form is for when these details change: – Company address – Scope of business – Shareholders – Bank account – Accounting period Important: Changes must be reported within 30 days. Penalties range between €125 and €1,165 for violations. VAT Return Forms: Your Monthly/Quarterly Routine Depending on your chosen filing interval, you will use: Form Purpose Deadline VAT Return (Quarterly) Quarterly filing up to €700,000 annual turnover 21st of following month VAT Return (Monthly) Monthly filing from €700,000 annual turnover 21st of following month VAT Return (Annual) Only for small businesses under €14,000 January 31 Supporting Forms: The Administrative Overhead In addition to main forms, you often need: POA (Power of Attorney): If a tax advisor represents you Bank verification letter: Confirms your business account Lease agreement/property title: Proof of business address VIES declaration: For EU-wide trade Intrastat forms: For annual goods trade above €50,000 Completing Forms Correctly: My Checklist After countless corrections, I developed a checklist to save you endless trips to the VAT Department: Fill in all fields: Even those that look optional Data consistency: Use the exact company name as in the registry Full IBAN: MT84 MALT 0110 0000 0000 0000 0123 456 British date format: DD/MM/YYYY, not German style Original signatures: Copies are often rejected Company stamp: Use it wherever available Pro tip: Make copies of everything. The VAT Department is notorious for misplacing paperwork, and you don’t want to be left stranded. Digital vs Paper Submission Malta is slowly modernizing. Several forms can now be filed online: Available online: – VAT returns (monthly/quarterly) – VAT7 notifications – Minor administrative changes Only by paper: – Initial VAT1 registration – Major structural business changes – Appeals and objections The portal is… usable. Not pretty, but functional. Login details are sent by post – yes, really, by post. Form Pitfalls: What Can Go Wrong The most common mistakes I’ve seen among friends: Incorrect NACE codes: Triggers queries and delays Unrealistic turnover estimates: Too low = audit, too high = extra securities Missing signatures: Needs to be signed by all directors Outdated business address: Registry and VAT must match Currency errors: Everything in euro, even if your home currency is different What’s the message? Take your time with the forms. A sloppy application wastes far more time than carefully filling them out from the start. Malta VAT Returns: Deadlines, Processes, and Common Pitfalls Your first VAT return in Malta feels like your first day at a new school – you know what’s supposed to happen, but in practice everything runs differently. After two years and plenty of “learning moments”, here’s how VAT returns in Malta really work. VAT Return Deadlines: No Compromises Malta is strict about VAT deadlines. The dates are set in stone: Return Type Accounting Period Submission Deadline Payment Deadline Quarterly Jan-Mar, Apr-Jun, Jul-Sep, Oct-Dec 21st of following month Same as submission Monthly Each calendar month 21st of following month Same as submission Annually Calendar year January 31 January 31 Reality check: The 21st is firm. If it falls on a Sunday, the deadline does not move to Monday – you have to file by Friday. I found this out the hard way, paying a €465 late fee. Filling Out the VAT Return: Step by Step The VAT return is less complicated than its German counterpart, but does have its quirks: Box 1 – Outputs (Standard Rate 18%): All sales and services in Malta or to Maltese clients. Important: net amounts, not gross. Box 2 – Outputs (Reduced Rate 5%): Only applies to select goods like books, medication, electricity. Often empty for service providers. Box 3 – EU Supplies: Sales to other EU countries. Important: the buyer’s VAT ID must be included. Box 4 – Exports outside the EU: Third-country exports. Normally 0% VAT, but proof required. Box 5 – Total VAT burdened: Automatically calculated: (Box 1 × 18%) + (Box 2 × 5%) Boxes 6-8 – Input VAT: Your paid VAT on purchases, split by 18%, 5% and EU acquisitions. Common VAT Return Pitfalls From my own and my friends’ experience – these mistakes happen all the time: Omitting reverse charge: B2B services to EU clients belong in Box 3, not Box 1 Overlooking private use: Private use of company car or phone is VAT-liable Ignoring EU thresholds: Over €35,000 EU sales, things get complicated Incorrect currency conversion: Use ECB rate from supply date, not payment date Incomplete receipts: Malta audits thoroughly – missing a supplier’s VAT number voids your input VAT claim Online vs Paper: Filing Your VAT Return Malta offers both options, with benefits and drawbacks: Online submission (recommended): – Portal: taxservices.gov.mt – Immediate submission confirmation – Auto calculations – Online payment – Possible until 11:59 p.m. Paper submission: – Hand-delivered at VAT Department – Opening hours: 8:00-12:30 and 13:15-17:00 – Paper receipt as proof – Sometimes required for complex cases My tip: Use the online portal. It’s not beautiful, but it works – and saves you a trip to Floriana. Making VAT Payments: Bank Transfer vs Online Malta accepts several payment methods: Online via portal: Direct debit from Maltese bank account Bank transfer: To the VAT Department account Cheque: Technically possible, but outdated Cash: Up to €500, at the VAT Department Important: The payment reference must include your VAT number, otherwise the payment won’t be credited. Late Filing: Penalties and Interest Malta doesn’t go easy on late filers: Delay Penalty Additional Interest 1-30 days €125 8% p.a. 31-60 days €250 8% p.a. 61-90 days €465 8% p.a. Over 90 days €750 8% p.a. Additionally, they can freeze your bank accounts or revoke business licenses. I know a German entrepreneur who had to practically re-found his Maltese company after six months of non-compliance. VAT Audits: What to Expect Malta audits even more systematically than Germany’s tax authorities. Triggers for audits: – Random selection – Unusually high input VAT refunds – Complaints or reports – Implausible turnover swings – New businesses (higher risk) Inspectors will require: – Full accounting records (at least 6 years) – Original invoices for all VAT claims – Bank statements – Contracts and correspondence – For EU trade: shipping documents & proof of delivery So what does this mean for you? Keep meticulous records from day one. A messy Excel file won’t cut it – invest in proper accounting software or hire a local tax advisor. Malta VAT for EU Foreigners: Special Features and Advantages As an EU national in Malta, you have a serious advantage over non-EU entrepreneurs – but only if you know the rules. After two years of intra-EU business using a Maltese VAT number, I can tell you: it’s a game-changer, but not a walk in the park. EU Single Market Benefits: What Malta Offers With a Maltese VAT number, you’re part of the EU single market. Specifically, this means: Reverse charge: B2B sales to other EU countries without Maltese VAT Input VAT deductions: Claim back VAT on EU-wide purchases VIES access: Verify EU VAT numbers in real time OSS eligibility: Simplified B2C returns via One-Stop-Shop Intrastat simplification: Only needed for annual trade above €50,000 Reverse Charge Mechanism: Your Best Friend The reverse charge mechanism is the jewel in the EU VAT crown. When your Maltese company provides services to other EU businesses, you charge 0% Maltese VAT. Practical example: You advise a German company for €10,000. Instead of adding €1,800 Maltese VAT, you invoice €10,000 net with the note “Reverse Charge – VAT payable by recipient”. The German client pays German VAT (19%) to their tax office, but can claim it back as input VAT. A win-win. Validating EU VAT Numbers: Using the VIES System Properly The VIES system (VAT Information Exchange System) is your shield against fraud. You can check any EU VAT number for free: Go to ec.europa.eu/taxation_customs/vies Enter the country and VAT number Get instant confirmation of its validity Save the result as proof Important: A valid VIES confirmation is required for reverse charge. Without this, you must charge Maltese VAT, even for B2B-EU transactions. OSS Procedure: Simplifying B2C EU Sales The One-Stop-Shop (OSS) procedure was introduced in 2021 and is a lifesaver for anyone selling to EU consumers. Without OSS (the nightmare): – VAT registration required in every country you sell to – 27 different VAT returns – 27 different payment deadlines – Local accounting in each country With OSS (the solution): – Single registration via Malta – One quarterly form – Single payment to Malta – Malta distributes to other countries The OSS threshold is €10,000 for all EU B2C sales combined. If you exceed this, use the customer’s country VAT rate – but file/pay through Malta’s OSS system. Input VAT Deductions: EU-Wide Refunds As a Maltese company, you can reclaim VAT paid across the EU via two methods: Electronic method (recommended): – Online application via Malta VAT portal – Processing time: max 4 months – Refund paid directly to your Maltese account Paper method (old school): – 8th Directive claim form – Processing time: 6-12 months – Often more questions, complications Documenting EU Trade Properly For trouble-free EU trading, you’ll need meticulous documentation: Business Type Required Documents Retention Period B2B Services VIES confirmation, contract, invoice 6 years B2C Sales (OSS) Delivery proof, customer data, invoices 6 years Goods Deliveries Delivery note, shipping proof, CMR 6 years EU Input VAT Original invoices showing VAT 6 years EU Thresholds: When It Gets Complicated Malta grants generous EU thresholds, but beware – crossing them means greater complexity: B2C distance sales: – €35,000 total to all EU countries – After that: OSS registration or local filings B2B services: – No threshold – reverse charge applies from the first euro Intrastat: – €50,000 in annual goods trade – Then monthly statistics filings required Brexit Effect: The UK as a Third Country Since Brexit, the UK is considered a third country for VAT. This means: No reverse charge: UK sales require Maltese VAT or UK import VAT No VIES checks: UK VAT numbers no longer valid in VIES Customs clearance: Full customs process for goods trade Separate OSS: UK operates its own system for B2C sales In practice: UK business has become much more burdensome. I know several entrepreneurs who’ve stopped trading in the UK as a result. The takeaway? Malta’s EU integration is a huge advantage – but only if you follow the rules to the letter. Invest in solid accounting and don’t hesitate to seek expert help for more complex EU setups. Malta VAT Costs: How Much Registration and Tax Advice Really Cost I’ll admit it: at first, the quotes for VAT advice in Malta gave me sticker shock. But after two years, I can say – yes, it’s a cost, but it’s worth it. Here are the real numbers from experience. VAT Registration Costs: DIY vs Professional Do-It-Yourself: Government fees: €0 (Malta charges no registration fee) Translations: €50-150 (if German documents need translation) Travel/parking: €20-40 (multiple journeys) Time investment: 15-25 hours Total cost: €70-190 With a tax advisor: Advisory fee: €800-1,200 Government fees: €0 Translations: Included in the fee Time investment: 2-3 hours (just for signing) Total cost: €800-1,200 Ongoing VAT Advice: What Does Regular Support Cost? Most tax advisors in Malta work with monthly retainers or quarterly billing: Company Type Quarterly VAT Monthly VAT Additional Services Small businesses €150-250 €100-150/month €50-80/hour Middle market €300-500 €200-350/month €80-120/hour Corporates €500-1,000 €400-700/month €120-200/hour Typically included: – VAT return preparation and filing – Basic VAT advice – Communication with the VAT Department – Standard correspondence Extra charges: – VAT audits (€150-300/hour) – Complex EU setups – OSS registration and handling – Disputes with authorities – Ad hoc advice outside the retainer Software Costs: Accounting and VAT Management In Malta, you can choose between local and international solutions: International software: – Xero: €25-50/month, strong Malta support – QuickBooks: €15-35/month, limited local features – Sage: €30-80/month, highly Malta-specific – FreshBooks: €15-30/month, great for freelancers Local Maltese software: – WinTax: €40-60/month, top Malta integration – Flexibee Malta: €35-55/month, also for EU trade – AccountsIQ: €45-75/month, for larger companies My tip: Xero is the best compromise for functionality and price. Its Malta integration is good, and you’ll easily find accountants who use it. Hidden Costs: Watch Out! From my experience, extra costs always pop up that you don’t expect at first: EU VAT refunds: €50-150 per claim (if handled by advisor) OSS registration: €200-400 one-time Intrastat filings: €100-200/quarter VAT number changes: €150-300 (for business structure updates) Penalty prevention: €200-500 (if you miss deadlines) Ongoing translation: €30-50 per document Choosing a Tax Advisor: What Makes a Good One? Malta has around 200 licensed accountants, but not all are equally strong. Here’s my checklist: Must-have qualifications: – ACCA or MIA member: Official Maltese license – VAT agent status: Authorization to represent for VAT – EU expertise: Cross-border VAT experience – English/German: No language barriers Positive indicators: – Fixed-price offers for standard tasks – Clear service-level agreements (SLA) – Proactive communications on deadlines – References from similar companies Red flags: – No transparent pricing – Promises of “tax avoidance” – Very low prices (below €600 for registration) – No official license Doing It Yourself vs. Outsourcing: What’s the Best Call? With two years’ Malta experience, here’s my take: Do it yourself if: – Simple business (1-2 shareholders) – Little EU trade (under €100,000/year) – Good availability for admin – Solid English and form skills Use a tax advisor if: – Complex group structures – Heavy EU trade or OSS requirements – Limited admin time – Uncertainty about tax regulations Hybrid (my recommendation): – Register with an advisor (€800-1,200) – File ongoing VAT returns yourself (software: €30-50/month) – Ad hoc advice for complex queries (€80-120/hour) – Annual check-up with advisor (€300-500) ROI Calculation: When Does Advice Pay Off? A real-life example from my network: Sarah, UX designer: – Annual turnover: €180,000 – VAT consultant: €2,400/year – Penalties avoided by submitting on time: €1,200 – Optimized EU VAT refunds: €800 – Own time saved: 60 hours × €75 = €4,500 – Net gain: €4,100/year So, what does this mean? VAT advice is almost always worth it above €150,000 annual turnover. Below that, it depends on your time resources and risk tolerance. Common Mistakes with Malta VAT: What I Learned in Two Years I could write a whole book on Malta VAT mistakes – but I’ll spare you. Instead, here are the top 10 fails I’ve made myself or witnessed in others. Some only cost nerves, others real money. Mistake #1: Unrealistic Turnover Forecasts When Registering The error: Many report way too low a turnover to stay under the radar. The consequences: – VAT Department becomes suspicious of sudden jumps – Possible security deposits of €2,000-5,000 – Intensive audits in year one What I learned: Be realistically optimistic. Plan for growth, but don’t exaggerate. A 50% upward swing is normal and accepted. Mistake #2: Not Checking EU VAT Numbers Properly The error: Using the reverse charge without valid VIES verification. What happened: An acquaintance sold €45,000 to an allegedly German client with an invalid VAT number. On audit, he had to pay €8,100 Maltese VAT plus €2,400 penalties. The solution: Check EVERY EU VAT number on VIES Save screenshot of the confirmation When in doubt: charge Maltese VAT to be safe Mistake #3: Not Declaring Private Use The error: Using company cars, phones, internet for personal reasons with no VAT adjustment. The reality: Malta treats private use of company assets as a supply to yourself. This amount must go on your VAT return and be taxed at 18%. Sample calculation: – Company car for private use: €300/month – Mobile phone: €50/month – Home internet: €40/month – Monthly extra VAT: €70.20 That’s €842 extra VAT per year – not small change. Mistake #4: Incorrect OSS Application for B2C Sales The error: Charging Maltese VAT on all EU B2C sales, instead of using local rates. What went wrong: An e-commerce entrepreneur sold digital goods worth €80,000 to Germany, charging 18% Maltese VAT instead of the OSS-mandated 19%. The bill: €800 extra VAT plus €1,200 fines from Germany. How to do it right: – B2C sales: apply customer country’s VAT – Over €10,000 per country: OSS registration – Quarterly filing via Maltese portal Mistake #5: Late Notification of Changes (VAT7) The error: Changing address, bank account or shareholders but not filing a VAT7. The penalty: €125-750 depending on delay. I know a case where the address change was reported four months late – €465 fine for a forgotten form. The 30-day rule: All changes must be reported within 30 days using VAT7. Set calendar reminders. Mistake #6: Incomplete Bookkeeping The error: Excel sheets are enough – spoiler: they’re not. What Malta requires: – Chronological records of all transactions – Original documents for every VAT claim – Separate tracking of input/output VAT – Monthly bank reconciliation For VAT audits: – Detailed turnover breakdown – All incoming VAT invoices – Proof of business activity (contracts, emails) – For EU trade: shipping documents My tip: Invest in decent accounting software from day one. €50/month is cheaper than a €5,000 audit penalty. Mistake #7: Misunderstanding Brexit Transition The error: Still using reverse charge with UK clients in 2021. Since January 1, 2021, the UK counts as a third country for VAT. Sales are subject to Maltese VAT or UK import procedures. Correct post-Brexit treatment: – UK sales: 18% Maltese VAT or – Client pays UK import VAT (for goods) – No more VIES checks – Separate documentation required Mistake #8: Currency Conversion at the Wrong Rate The error: Converting foreign currency sales at payment rate, not invoice date. Malta rule: The ECB rate on the date of supply applies, not on date of payment. Example: – Invoice $10,000 on March 15 (ECB rate: 0.85) – Payment on April 15 (ECB rate: 0.90) – Relevant for VAT: €8,500 (March rate) With volatile currencies, this can mean big differences. Mistake #9: Claiming Input VAT with Invalid Invoices The error: Declaring private or incomplete invoices for VAT refunds. Malta requirements for VAT deduction: – Complete invoice showing VAT – Supplier’s VAT number (for EU purchases) – Documented business purpose – Payment proven (bank statement) Frequent rejections: – Restaurant receipts with no business purpose – Fuel receipts without a company car – Amazon orders without a business connection – EU invoices lacking VAT numbers Mistake #10: Late VAT Return Despite Refund Due The error: Believing that refund claims extend the filing deadline. The truth: Even for refunds, your return is due by the 21st of following month. A late return means a fine, even if you are owed money. Particularly annoying: Refunds are delayed by a further 4-8 weeks due to the lateness. Prevention Checklist: How to Avoid These Mistakes Set calendar alerts: 21st of every month = VAT deadline VIES routine: Check and save screenshot for every EU VAT number Monthly bookkeeping: Don’t leave it all for last minute Report changes immediately: Submit VAT7 within 30 days Document private use: Ensure personal use of company car, phone, etc. is taxed properly Convert foreign currencies daily: Use ECB rate on supply date Full documentation: Only claim input VAT with complete invoices Treat UK separately: Follow post-Brexit rules since 2021 Monitor OSS thresholds: Watch the €10,000 per EU country Seek professional help: Better to ask one time too many So what’s the message? Malta VAT isn’t rocket science, but the details make all the difference between success and costly mistakes. Invest in good systems and don’t shy away from professional advice for complex questions. Frequently Asked Questions about Malta VAT Do I need to register for VAT in Malta if I only sell services to the EU? Yes, if you are resident in Malta and your annual turnover from EU services exceeds €35,000, registration is mandatory. Even at lower volumes, voluntary registration can make sense to reclaim input VAT. How long does VAT registration in Malta really take? Officially 4-6 weeks, but in practice 6-8 weeks if your paperwork is in order. Complicated cases or missing documents can extend this to 10-12 weeks. Can I, as a German entrepreneur, apply for Maltese VAT online? No, the initial registration (VAT1) must be submitted in person or via a local representative. Ongoing VAT returns can be submitted online later. What happens if I file my Malta VAT return late? Penalties are tiered: €125 (1-30 days late), €250 (31-60 days), €465 (61-90 days), and €750 (over 90 days), plus 8% annual interest on balances due. Do I need a Maltese tax advisor for VAT registration? Not mandatory, but highly recommended. Registration with an advisor costs €800-1,200, but helps prevent expensive errors and delays. For complex EU structures, professional help is almost essential. How does the reverse charge mechanism work with other EU countries? For B2B sales to other EU countries, you charge 0% Maltese VAT if the customer has a valid EU VAT number. The client pays VAT in their own country. Important: a VIES check is required as proof. When do I need to register for OSS? The OSS (One-Stop-Shop) system applies for B2C sales if you exceed the total €10,000 threshold. You must then apply the customer’s local VAT rate – but file and pay via Malta. Can I reclaim VAT paid in other EU countries from Malta? Yes, via the electronic refund process. Apply through the Malta VAT portal; processing takes up to 4 months. You need proof of business use and full documentation. How does Brexit impact Malta VAT? Since 2021, the UK is a third country for VAT. No more reverse charge, no VIES checks. UK sales are subject to Maltese VAT or UK import rules. OSS registration is separate for UK B2C transactions. What accounting software is best for Malta VAT? Xero (€25-50/month) offers the best Malta integration for international needs. Local alternatives include WinTax (€40-60/month) or Sage Malta (€30-80/month) for purely Maltese business.
