Value Added Tax (VAT)

Any company that registers for VAT under Article 10 gets a VAT number that has an MT prefix. If you register under article 10, you will need to: –

• Issue tax invoices on every supply you make
• Submit your VAT returns for three months levy period not later than 6 weeks after the tax period expires or as the commissioner directs.

Once a taxable person makes a supply for a consideration in Malta (other than an exempt without credit supply), the taxable person shall apply to be registered under this article within 30 days from the date of that supply. In other words, you should register for VAT within 30 days of carrying out your first sale. However, it is advisable to register before.

If you are supplying goods and services and your annual turnover exceeds the established entry threshold, you have to register for VAT under article 10, by which you will be liable to charge VAT on your taxable supplies and you could claim back the VAT you incur in the course of your taxable activity under certain conditions. For those whose turnover does not surpass the stipulated entry threshold, they may register for VAT as exempt under article 11.