Cap. 406

VAT law in Malta: the VAT Act, Chapter 406

Updated 2026-08-15

Every rule on this site comes from one statute. Knowing where a rule sits in it is the quickest way to check any VAT answer, ours included.

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Question 1

Where is the business established?

Establishment is decided by article 2(2) and 2(3) of the VAT Act, not by where the company is incorporated alone.

The VAT Act Malta runs on

VAT in Malta is charged under the Value Added Tax Act, Chapter 406, Act XXIII of 1998. It has been in force since 1 January 1999, replacing the excise tax system on imports, products and services.

The consolidated text we read on 2 November 2026 was published on 1 October 2026. It carries the amendments up to Act III of 2026 and Legal Notices 75 and 86 of 2026.

How the Act is arranged

Arrangement of the Value Added Tax Act, Chapter 406
Part	Subject	Articles
I	Preliminary	1 to 3
II	Scope of the tax	4 to 9
III	Registration and tax period	10 to 17
IV	Determination and payment of the tax	18 to 26
V	Returns, assessments, penalties and appeals	27 to 47
VI	Records and information	48 to 56
VII	Special cases	57
VIII	Collection, security and refunds	58 to 71
IX	Miscellaneous	72 to 75
X	Offences and punishments	76 to 84
XI	Transitional provisions	85 and 86

Where the rules most businesses need sit

Registration: Part III: Article 10 full registration, Article 11 the small-enterprise scheme, Article 11A and 11B for cross-border small enterprises, Article 12 for intra-community acquisitions and reverse-charge services, and article 13 on the online application and the MT prefix.
Rates: Article 19 sets the 18% standard rate; the Eighth Schedule lists the 12%, 7% and 5% supplies.
Exemptions: The Fifth Schedule: Part One exempt with credit, Part Two exempt without credit.
Small enterprises: The Sixth Schedule, including the €35,000 domestic threshold and the annual declaration.

The Act is amended several times a year by Act and by Legal Notice, and the Schedules move most. Check the consolidated text and its timeline on legislation.mt before relying on any single item.

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Register under the right article the first time

Six questions, and the Act quoted on every answer.

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Questions, answered directly

What is the VAT Act in Malta?

The Value Added Tax Act, Chapter 406 of the Laws of Malta, enacted as Act XXIII of 1998 and in force since 1 January 1999. It sets who must register, the 18% standard rate, the exemptions and reduced rates in its Schedules, returns, penalties and refunds.

Where are VAT exemptions listed in Malta's VAT law?

In the Fifth Schedule to the VAT Act. Part One lists supplies exempt with credit, such as exports and scheduled bus transport. Part Two lists supplies exempt without credit, such as insurance, banking, health, education and the supplies of a small enterprise registered under Article 11.

Sources

This site's own datasets, every figure quoted from its source and dated:

The EU VAT Rates carries 81 published figures read from 6 sources' own pages; the 75 published figures given by category run from 0 to 13.50 percent, read 7 November 2026.
The EU VAT Registration Thresholds carries 19 published figures read from 17 sources' own pages; the 17 published figures given by jurisdiction run from 10,000 to 100,000 EUR, read 7 November 2026.
The Malta VAT Registration Rules carries 2 published figures read from 2 sources' own pages, from 10,000 to 35,000 EUR, read 7 November 2026.
The median published figure in the VAT Registration Agent Fees is 190 EUR across 5 figures from 2 sources' own pages (range 99 to 599 EUR), read 11 November 2026.

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