Malta VAT Calculator 2025 | 18%, 12%, 7%, 5% Rates

  • Adam
  • November 3, 2025

Free Malta VAT calculator. Calculate 18% standard, 12%, 7%, 5% reduced rates instantly. Add/remove tax with official Malta Revenue Office formulas. Updated 2025.

🇲🇹 Malta VAT Calculator

Calculate Taxxa fuq il-Valur Mizjud - Updated 2025

Standard: 18% | Reduced: 5%, 7%, 12%
VAT Rate: 18%
Base Amount (Ex VAT): €0.00
VAT Amount: €0.00
Total Amount (Inc VAT): €0.00

How to Calculate Malta VAT

Malta's Value Added Tax (VAT), known locally as "Taxxa fuq il-Valur Mizjud," is a consumption tax applied to goods and services. Malta operates with a standard rate of 18% and multiple reduced rates (12%, 7%, 5%) for specific categories, plus a zero rate for exports and certain essentials. VAT is administered by the Malta Revenue Office and is harmonized with EU VAT rules as an EU member state since 2004.

2025 Update: Malta maintains its standard 18% VAT rate with reduced rates at 12% (certain services), 7% (hotel accommodation and sports), 5% (books, electricity, medical equipment), and 0% (exports, certain food, medicines). The 12% rate was introduced in 2024 for specific services including certain boat chartering activities.

Adding VAT to a Price

When you need to add VAT to a VAT-exclusive price, use these formulas:

VAT Amount = Base Price × (VAT Rate ÷ 100)
Total Price (Inc VAT) = Base Price × (1 + VAT Rate ÷ 100)

Example for 18% standard rate: If the base price is €100 (excluding VAT):

VAT Amount = €100 × 0.18 = €18.00

Total Price = €100 + €18.00 = €118.00

Example for 7% hotel rate: If the base price is €100 (excluding VAT):

VAT Amount = €100 × 0.07 = €7.00

Total Price = €100 + €7.00 = €107.00

Removing VAT from a Price

When you need to calculate the VAT-exclusive price from a VAT-inclusive price, use these formulas:

Base Price (Ex VAT) = Total Price ÷ (1 + VAT Rate ÷ 100)
VAT Amount = Total Price - Base Price

Example for 18% standard rate: If the total price is €118 (including VAT):

Base Price = €118 ÷ 1.18 = €100.00

VAT Amount = €118 - €100 = €18.00

Helpful Tip: VAT at 18% means that approximately 15.25% of the VAT-inclusive price is the actual VAT component (because 18÷118 ≈ 0.1525).

Understanding Malta's VAT System

What is VAT in Malta?

Taxxa fuq il-Valur Mizjud (VAT) is Malta's value-added tax system. It's a consumption tax collected at each stage of the supply chain with the final burden on consumers. Malta's VAT system is harmonized with EU rules as a member state since 2004. Businesses can claim input tax credits for VAT paid on business purchases, preventing tax accumulation.

The Five Maltese VAT Rates

Standard Rate (18%): Applies to most goods and services including electronics, clothing, motor vehicles, alcohol, tobacco, professional services, and entertainment.

Reduced Rate (12%): Introduced in 2024, applies to specific services including:

  • Chartering activity under certain conditions
  • Management of credit and credit guarantees
  • Certain health care services
  • Pleasure boat hire

Reduced Rate (7%): Applies to essential services including:

  • Hotel accommodation and lodging
  • Use of sporting facilities
  • Supply of water

Reduced Rate (5%): Applies to essential goods and services including:

  • Electricity and energy supplies
  • Books and e-books
  • Newspapers and periodicals
  • Confectionery and similar food products
  • Medical equipment and accessories for disabled persons
  • Admission to cultural events
  • Repair services for shoes, leather goods, clothing
  • Import of artworks and antiques

Zero Rate (0%): Applies to specific supplies:

  • Export of goods from Malta
  • Intra-community supplies (goods shipped to other EU countries)
  • Certain foodstuffs for human consumption
  • Prescribed medicines and pharmaceutical products
  • International passenger transport
  • Supply of vessels for maritime transport

VAT Registration Requirements

Businesses in Malta must register for VAT if:

  • Annual turnover exceeds €35,000 for goods
  • Annual turnover exceeds €30,000 for services
  • Non-resident status - No threshold for non-residents
  • Import of goods - Any importer must register

Businesses below the threshold can voluntarily register for VAT.

VAT Filing and Compliance

VAT-registered businesses in Malta must file VAT returns quarterly with the Malta Revenue Office:

  • Quarterly Returns: All businesses file quarterly
  • Payment Deadline: VAT payments due within specified timeframe
  • Penalties: Late submissions or non-payment incur daily fines or interest charges
  • Electronic Filing: All returns must be submitted electronically

VAT-Exempt and Special Supplies

Important Distinction: Zero-rated supplies (0%) allow input tax credit claims, while exempt supplies do not, creating a real cost for exempt suppliers.

Exempt Supplies (No VAT, No Input Credit)

Some supplies are exempt from VAT, meaning businesses cannot claim input tax credits:

  • Healthcare Services: Medical and dental services
  • Education: Educational services by approved institutions
  • Financial Services: Banking, insurance services (mostly)
  • Postal Services: Universal postal services
  • Sports Activities: Sports services and competition admission (some)
  • Broadcasting: Broadcasting services
  • Lottery and Gambling: Lottery and gaming services
  • Water Supply: Certain water supplies (may differ from above)
  • Property Transactions: Sale and lease of immovable property (mostly)

Items Subject to 18% Standard Rate

The following are subject to standard 18% VAT:

  • Electronics and appliances
  • Clothing and footwear
  • Motor vehicles and parts
  • Alcohol and tobacco
  • Restaurant and catering services
  • Professional services
  • Haircuts and beauty treatments
  • Amusement park entry
  • Most entertainment services
  • Gasoline and fuel

Items Subject to Reduced Rates (5%, 7%, 12%)

The following are subject to reduced VAT rates:

  • 5% Rate: Books, e-books, newspapers, electricity, medical equipment, cultural events, repairs
  • 7% Rate: Hotel accommodation, sporting facilities, water supply
  • 12% Rate: Certain services, boat chartering, health services, credit management

Malta VAT Quick Reference

Aspect Details
Standard VAT Rate 18%
Reduced VAT Rates 12%, 7%, and 5%
Zero VAT Rate 0% for exports and certain essentials
Local Name Taxxa fuq il-Valur Mizjud
Registration Threshold €35,000 (goods) / €30,000 (services)
Administering Authority Malta Revenue Office
Filing Frequency Quarterly
Tax Type Value Added Tax (VAT)
EU Member Yes - since 2004, VAT harmonized with EU rules
12% Rate Introduction Introduced in 2024 for specific services

Frequently Asked Questions (FAQ)

What is VAT in Malta?
VAT (Taxxa fuq il-Valur Mizjud) is Malta's value-added tax applied to goods and services. The standard rate is 18%, with reduced rates of 12%, 7%, and 5% for specific items, and 0% for exports and certain essentials. VAT is ultimately borne by the final consumer and collected at each stage of the supply chain.
What is the standard VAT rate in Malta?
The standard VAT rate in Malta is 18%. This rate applies to most goods and services, including electronics, clothing, motor vehicles, alcohol, tobacco, professional services, and entertainment. Reduced rates of 12%, 7%, and 5% apply to specific categories.
How do I calculate Malta VAT?
To add VAT: multiply the base price by 1.18 (for 18%), 1.12 (for 12%), 1.07 (for 7%), or 1.05 (for 5%). To remove VAT: divide the total price by the corresponding multiplier. For example, €100 with 18% VAT becomes €118; to reverse: €118 ÷ 1.18 = €100.
Who needs to register for VAT in Malta?
Businesses must register for VAT if their annual turnover exceeds €35,000 for goods or €30,000 for services. Non-residents must register regardless of turnover. Businesses below the threshold can voluntarily register to claim VAT input credits on purchases.
What items are subject to the 5% reduced rate?
The 5% reduced rate applies to books, e-books, newspapers, periodicals, electricity, medical equipment for disabled persons, admission to cultural events (theatre, museums, concerts), and repair services for shoes, leather goods, and clothing.
What items are subject to the 7% rate?
The 7% rate applies to hotel accommodation and lodging, use of sporting facilities and gym memberships, and supply of water for domestic consumption.
What is the 12% VAT rate for?
The 12% rate was introduced in 2024 and applies to specific services including chartering activity under certain conditions, management of credit and credit guarantees, certain health care services, and pleasure boat hire.
Can Maltese businesses claim VAT input credits?
Yes, registered VAT businesses in Malta can claim input tax credits for VAT paid on goods and services purchased for business use. This prevents tax accumulation through the supply chain. Input credits cannot be claimed on exempt supplies or personal expenses.
How often must businesses file VAT returns in Malta?
All VAT-registered businesses in Malta must file VAT returns quarterly with the Malta Revenue Office. Late submissions or non-payment can result in daily fines or interest charges. All returns must be submitted electronically.
Are exports subject to VAT in Malta?
No, exports from Malta are zero-rated (0%) and no VAT is charged. Businesses can claim input tax credits for VAT paid on goods and services used to make those export supplies, making exports VAT-free while maintaining tax efficiency for exporters.

Official Malta Government Sources & References

All VAT data is sourced from official Malta government agencies and trusted financial authorities:

🏛️ Malta Revenue Office - Official VAT Information 📊 Malta Revenue Office - Official Tax Authority 💼 Ministry of Finance - Malta Government 📝 Malta Revenue Office - VAT FAQ 🔄 Malta Revenue Office - VAT Rates and Exemptions ✅ Malta Tax Forum - VAT Information and Updates

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