Malta has third lowest VAT rate in EU

During the European Commission release of a document describing the new applicable VAT rates, Malta’s 18% rate was shown to be the third lowest in the EU, the average rate being 20.9 per cent. Because of the financial crisis, several Member States has to revise their rates upwards. Moreover, Malta, is one among the only three countries in the EU which does not charge VAT on food items and pharmaceuticals. By have no intention of giving up their zero rates on food and medicine. The lowest standard VAT rate allowed in the EU is 15 per cent.