VAT compliance is an obligatory element of operating a business. Not meeting your VAT compliance obligations can result in hefty penalties and fines, late interest imposed by authorities, reputational damage, bad press, and in some instances, business closure.

Many think that VAT compliance consists only in registering for a VAT number and file quarterly returns, but the reality is more complex. VAT compliance services include a vast range of services including: VAT registration, preparation and submission of VAT returns, VAT refund claims, registration of EXO number, VAT advice on complex business transactions, cross border VAT processing, Intrastat reporting, preparation and filing of VAT recapitulative statements, preparation and filing of OSS returns, liaising with the VAT department on any disputes, assistance during VAT department compliance visits, tailor-made VAT advice and VAT de-registration process when required. Challenges also arise for businesses who are selling their services or products internationally. Managing such complexity necessitates a meticulously planned and organised process to guarantee all compliance responsibilities.

VAT in Malta

In Malta, the regulation of VAT falls under the VAT Act and its associated legislation, Chapter 406 of the Law of Malta, aligning with the EU VAT Directives. The standard VAT rate in Malta is 18%, with a reduced rate of 5% for specific goods and services, and a VAT rate of 7% for licensed letting and use of sporting facilities. Individuals and entities engaged in economic activities are required to obtain a VAT number unless exempt. There are three categories of VAT registrations — Article 10, 11, or 12 — each imposing distinct obligations based on the nature of the business activity. VAT registration in Malta is facilitated through the Commissioner for Revenue, who issues a VAT Certificate containing the assigned VAT number. Timely submission of VAT returns and payments (if applicable) is crucial, as failure to do so incurs penalties.

As a pioneer in the field of VAT compliance in Malta, Accounting Services offers complete services for anything on VAT compliance. Our team of local VAT advisors and specialised accounting team can take care of your business’ VAT duties with no hidden costs whilst you can take care of your business – all this while staying VAT compliant. Throughout the past 10 years, we have worked with varies businesses, gaining experience making our firm your one-stop-shop for anything VAT.  

For assistance with VAT services please contact our Director Conrad Meli on cmeli@accountingservices.com.mt and view our web page for a full list of the services on VAT compliance: https://fairwindsmanagement.net/services/accountancy-services/vat-compliance.

Fairwinds Management Limited is a MFSA licensed firm offering Business Solutions in Malta. As part of our services, we offer Accounting, Administration, Corporate and Legal solutions.  Fairwinds Management also manages the brand Accounting Services. More information about us and our key services please visit our website. You may reach Fairwinds Management on +356 2704 0903 or info@fairwindsmanagement.net.

Article written by Ms Charlene Sciberras, B.A. (Hons), guest writer, a marketing and business administration specialist with a special focus on corporate, accounting, and legal matters.