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Malta VAT Exemption for Small Undertakings

12.06.2018

Legal notice 163 of 2018 of the Laws of Malta, the ‘Value Added Tax Act (Amendment of Sixth Schedule) Regulations, 2018’, published on the 22nd of May 2018, enacts changes to the VAT Exemption for Small Undertakings thresholds.

According to this legislation, any taxable person (individual or corporate) in terms of the VAT Act, whose turnover is below the established entry threshold for the  respective business category, can register under article 11 of the Malta VAT Act in order to be exempted from charging VAT when supplying taxable goods or taxable services.

The recent amendment to this legislation carries a change in the various thresholds applicable (see table below), as a result of which the minimum threshold will be increased from €14,000 to €20,000. The new thresholds will come into effect as from the 1st July 2018, and will remain applicable up to 31st December 2020, unless extended.

Category Entry Threshold Exit Threshold
Economic activities consisting principally in the supply of goods € 35,000 € 28,000
Economic activities consisting principally in the supply of services with a relatively low value added € 24,000 € 19,000
Other economic activities € 20,000 € 17,000

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