How vat / sales tax works in Malta
Maltese VAT defaults to 18%, with 7% on hotel stays and domestic transport, 5% on books, press, and confectionery, and 0% on exports, basic food, and medicines.
Registration follows the turnover threshold with voluntary entry for input-heavy starters, quarterly returns standard, and monthly filing for larger traders.
Financial, health, education, and property supplies are largely exempt, while EU distance sellers route through OSS and B2B imports reverse-charge.
Tax rates at a glance
- Standard VAT
- 18%
- Reduced VAT
- 7% / 5%
- Zero-rated supplies
- 0%
- Exempt supplies
- Exempt
- Registration line
- Turnover test
- Filing rhythm
- Quarterly
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersSaaS foundersFreelancersExpatsHospitality operators
Watch out for
- Four bands plus exemptions punish single-rate invoicing: stays at 7%, books at 5%, groceries at 0%, and services at 18% coexist on one island.
- Exempt finance, gaming-adjacent, and property supplies block input recovery, which reprices holding and fund structures.
- Small-trader thresholds split goods and services tracks, so mixed businesses test each stream separately.
- OSS, IOSS, and reverse-charge mechanics decide more liability than domestic bands for cross-border sellers.
Frequently asked questions
What is the VAT rate in Malta?
Malta applies 18% standard VAT in 2026, with 7% for stays and transport, 5% for books and confectionery, and 0% for exports, basic food, and medicines.
When must a Maltese business register for VAT?
Past the turnover threshold for its activity track, with voluntary registration for input-heavy starters. OSS covers EU distance sales past the union line.
How often are Maltese VAT returns filed?
Quarterly as standard, with monthly filing for larger turnovers. Exempt-track traders file under separate rhythms.