# Malta VAT Guide for 2026: Rates, Registration & Filing

Canonical: https://trykintsugi.com/sales-tax-guides/europe/malta
Published: July 15, 2026

Malta's standard VAT is 18%, with reduced 7%, 5%, and 0% bands. Learn registration thresholds, OSS, and filing obligations.

- **SaaS:** Taxable
- **Digital Goods:** Taxable

## Key Takeaways

Malta applies a standard VAT rate of 18% to most goods and services, including SaaS and digital products, with a 12% reduced rate for securities and credit management, pleasure-boat hire, and certain regulated health services. A non-established business must register as soon as it makes taxable supplies, with no threshold; for EU-wide B2C distance sales, VAT is due once sales exceed the EU-wide EUR 10,000 threshold. Financial and insurance services, health and welfare, and education are exempt without credit; exports and intra-EU supplies are zero-rated with credit.

## Taxability Snapshot

## Sales Tax Rates

Malta applies a standard VAT rate of 18% to most goods and services, including SaaS and digital products sold to consumers. Reduced and special rates apply to specific categories:

| Rate | Applies to |
| --- | --- |
| 18% (standard) | most goods and services, SaaS, and digital services |
| 12% (reduced) | securities and credit management, pleasure-boat hire, certain regulated healthcare |
| 7% (reduced) | tourist and hotel accommodation, licensed sports facilities |
| 5% (reduced) | electricity, medical equipment, printed matter and e-books, confectionery, cultural admissions |
| 0% (zero) | food, pharmaceuticals, exports, intra-EU and international transport |

Electronically supplied services are taxed where the customer is located, so a foreign SaaS seller charges Maltese VAT on B2C sales and reports it through the EU One Stop Shop (OSS).

#### Registration & nexus threshold

Malta uses VAT registration rules rather than US-style economic nexus. A non-established business must register as soon as it makes taxable supplies in Malta, with no threshold [2]. For cross-border B2C sales within the EU, VAT is due in the customer's country once total EU distance sales exceed the EU-wide EUR 10,000 threshold, reportable through the One Stop Shop [2]. Registration steps are in the How to Register section.

#### Filing frequency & deadlines

Maltese Article 10 registrants file quarterly VAT returns, due the 22nd day of the second month after the period ends. Article 11 small undertakings file one simplified annual declaration.

#### Exemptions

Exempt-without-credit supplies include financial and insurance services, health and welfare, education, and the letting of immovable property. Exports, intra-EU supplies, and international transport are zero-rated with credit.

#### Penalties

Late Article 10 registration draws a penalty based on the tax due for the first period. Late or non-filing costs the higher of 1% of VAT due or EUR 20 per month, capped at EUR 250 (minimum EUR 50), and late payment accrues interest of 0.6% per month.

#### Sources

- [1] [European Commission — VAT rates (Malta 18% standard, 5%/7%/12% reduced, 0% on food)](https://taxation-customs.ec.europa.eu/taxation/vat/vat-directive/vat-rates_en)

- [2] [European Commission — One Stop Shop (EU-wide EUR 10,000 threshold)](https://vat-one-stop-shop.ec.europa.eu/one-stop-shop_en)

- [3] [Malta Tax and Customs Administration — VAT](https://cfr.gov.mt)

Verified July 2026 against European Commission and Malta Tax and Customs Administration guidance.

#### Frequently asked questions

### What is the VAT rate in Malta in 2026?

Malta's standard VAT rate is 18%. Reduced or special rates of 12%, 7%, 5% and 0% apply to categories such as food, books, medicines, and accommodation.

### Do I need to register for VAT in Malta as a foreign business?

Yes. Non-established businesses have no registration threshold in Malta and must register before their first taxable sale. The domestic small-business exemption applies only to Maltese-established businesses.

### Is SaaS taxable in Malta?

Yes. SaaS and other electronically supplied services are taxed at the 18% standard rate. B2C sales are taxed where the customer is located and are usually reported through the EU One Stop Shop (OSS).

### How often are Malta VAT returns filed?

Maltese Article 10 registrants file quarterly VAT returns, due the 22nd day of the second month after the period ends. Article 11 small undertakings file one simplified annual declaration.

### What is the EU distance-selling threshold for Malta?

EUR 10,000 per year across all EU B2C sales of goods and digital services. Above it you charge Maltese VAT on sales to Maltese consumers and report through OSS.

### What are the penalties for late VAT in Malta?

Late Article 10 registration draws a penalty based on the tax due for the first period. Late or non-filing costs the higher of 1% of VAT due or EUR 20 per month, capped at EUR 250 (minimum EUR 50), and late payment accrues interest of 0.6% per month.