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HomeTaxationMalta to continue to apply EUR 20,000 VAT Registration Threshold

Malta to continue to apply EUR 20,000 VAT Registration Threshold

Malta has received approval from EU authorities to extend its heightened value-added tax registration threshold for certain suppliers of services.

Under Article 287 of the EU VAT Directive, Malta is permitted to apply the following VAT registration thresholds:

  • EUR37,000, if the taxpayer’s economic activity consists principally in the supply of goods;
  • EUR24,300, if the taxpayer’s economic activity consists principally in the supply of services with a low value added (high inputs); and
  • EUR14,600, in other cases – namely supplies of services with a high value added (low inputs).

Under a derogation approved for Malta that was set to expire at the end of the year, Malta was permitted to derogate from Article 287 in applying a heightened VAT registration threshold for this final category of taxpayers of EUR20,000, rather than EUR14,600.

In Council Implementing Decision (EU) 2020/1662, published in the EU’s Official Gazette on November 10, 2020, Malta has now received approval to continue to apply the derogating measure until December 31, 2024.

To develop your business project in Malta ask the Malta Business Agency staff for advice.

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