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Value Added Tax is perhaps the most complicated and often dangerously ignored or 'underestimated' tax regime. As a Malta-Cyprus based firm which offers a one-stop shop for all the necessary services, we have a wealth of expertise and ‘on the ground’ knowledge of VAT Law that allows us to take the burden of VAT compliance off your shoulders by advising you on VAT matters and compliance procedures, completing your quarterly or annual VAT returns and ensuring their timely submission to the VAT Department.

VAT Law in Malta

As a full EU member state, Malta is part of the EU VAT system and implements the EU VAT Directive. The Malta VAT Act, together with a number of subsidiary laws promulgate the relevant rules, which are administered by the VAT Department. The standard rate of VAT in Malta is 18% , but there are reduced rates for a number of products. All companies with a Malta VAT number are required to submit VAT returns (typically on a quarterly basis) indicating the supplies made and any input VAT incurred.

VAT Law in Cyprus

Cypriot companies or individuals that make taxable supplies in Cyprus exceeding threshold of EUR 15,600 must register for VAT in Cyprus. Cyprus VAT law provides for different VAT rates, depending on the type of product; however the standard VAT rate is at 19%. A reduced rate of 9% applies on various services relating to the tourist sector and to the commercialisation of food and drinks. Food, pharmaceuticals, books and other printed materials, and liquid gas benefit from a reduced rate of 5% while postal services, education, cultural services offered by non-profit organizations, lotteries and health and welfare are exempt from VAT.

Our VAT Law Services

Our Vat Law team is made up of seasoned mix of tax lawyers and accountants who advise on the implications of providing supplies of goods and services on which VAT applies in Malta, Cyprus and the rest of Europe via a Maltese or Cypriot company. Our VAT specialists are ready to advise on the requirements for registration of foreign operators as taxable persons for VAT purposes in Malta or Cyprus for e-commerce as well as for brick and mortar establishments. Our firm provides a number of important services to its clients with respect to VAT matters, including VAT registration, management of relations with the VAT department and preparing and submitting periodic VAT returns. We also offer professional advice on the right VAT treatment required in a particular transaction and handle VAT compliance and VAT refund administration for companies.

Our fully-fledged VAT Compliance team is ready to assist clients to ensure their business is fully compliant with all statutory obligations under Maltese or Cypriot VAT law and to find the most efficient VAT structure for their business and apply for any relevant VAT refunds.

Our VAT team can also assist with the setting up of internal systems and procedures which assist in the generation of VAT returns.  They can also conduct reviews of VAT returns and accounting  records.  The team also has experience with businesses and entities which are partially exempt from VAT, exempt without credit or that undertake mixed activities.  

Partial exemption and non-business allocations add another layer of complexity to an already complex tax regime. Our team will ensure that your accounting systems are set up to deal with these intricacies.

Should clients wish, we can also carry out a VAT analysis which consists of an evaluation of the VAT processes and procedures within a business activity. The main reason would be to propose recommendations to update or reorganise their VAT affairs of the corporation and reduce possible forthcoming complications. Through this exercise we also seek to detect potential opportunities of achieving VAT savings and optimisation.​

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Key Contacts

Ms Michelle de Maria

Partner, Tax

+356 22056692

Mr Kenneth Camilleri

Senior Partner, Global Immigration & Tax

+356 22056414