Register for VAT in Malta
Register for VAT in MaltaUpdated on Wednesday 25th March 2020
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Categories of VAT registration in Malta
- those supplying goods or services who will register for VAT under Article 10;
- those supplying goods or services who will register for VAT under Article 11;
- those with intra-community supply of goods and services in Malta who must register for VAT under Article 12.
- activities consisting in the supply of goods or services which can bring annual turnovers, with an exit threshold of 28,000 euros and an entry threshold of 35,000 euros;
- activities consisting in the supply of goods or services with a low value added tax, with an exit threshold of 19,000 euros and an entry threshold of 24,000 euros;
- other economic undertakings with an exit threshold of 12,000 euros and an entry threshold of 14,000 euros.
Documents required when registering for VAT in Malta
- copy of ID card or valid passport of the applicant in the case of natural persons;
- copy of the ID card or valid passport of the company’s representative in the case of companies;
- copy of the statutory documents in the case of partnerships and companies.
Who must register for VAT in Malta
VAT rates in Malta
- medical equipment,
- certain foods,
- care services for minors, old or sick persons,
- works of art,
- printed materials,
- access fees in museums, concerts and theatres.
Goods and services exempt from VAT in Malta
- international traffic and transportation,
- local transportation,
- intra-Community goods and services,
- certain ships and aircrafts,
- certain categories of foodstuff,
- packaged medicines.
- real estate property (excepting tourism accommodation with a MTA license, parking spaces, property rental by a limited company for economic activities),
- insurance and financial services,
- cultural and religious facilities,
- lottery and gambling,
- postal services,
- educational services,
- health facilities,
- the supply of water by authorities.
Maltese VAT rates for yacht leasing
- for yachts over 24 meters, the percentage is 30%,
- for yachts between 20 and 24 meters - 40%,
- for yachts between 16 and 24 meters - 40%,
- for boats between 10 and 20 meters - 50%,
- for boats between 12 and 16 meters - 50%,
- for yachts up to 10 meters - 60%,
- for yachts between 7.51 and 12 meters registered in the Maltese Commercial Register - 60%,
- for boats up to 7.5 meters registered in the Commercial Register - 90%.
Eligibility criteria to benefit from the Maltese VAT treatment
- the boat must be in Malta at the beginning of the lease agreement,
- one of the parties concluding the lease agreement must be a Maltese company,
- the lessee must obtain approval and confirmation from the Commission of VAT with respect to the applicable rate,
- the lessee must pay an initial contribution worth 50% of the value of the yacht,
- the lease installments must be paid on a monthly basis for 36 months at most,
- the lessor must make a profit from leasing the boat worth more than the boat’s value.