VAT

Although it is a well known fact that Malta has an attractive tax system, Value Added Tax is perhaps the most complicated and often dangerously ignored or ‘underestimated’ tax regime. As a diversified law firm, Chetcuti Cauchi offers a one stop shop for all necessary services with a wealth of expertise and a strong pediment in VAT law. This allows us to take the burden of VAT compliance off your shoulders by providing advice on VAT matters and compliance procedures, completing your quarterly or annual VAT returns and ensuring their timely submission to the VAT department.

VAT Law in Malta

As a full EU member state, Malta is part of the EU VAT system and hence implements the EU VAT Directive. The Malta VAT Act and a number of subsidiary laws promulgate the relevant rules which are administered by the VAT Department, the relevant authority. The standard rate of VAT in Malta is 18%, but there are reduced rates for a number of . All companies with a Malta VAT number are required to submit VAT returns (typically on a quarterly basis) indicating the supplies made and any input VAT incurred.

 Our VAT Law Services

Our Vat Law team comprises a mixture of tax lawyers and accountants who provide advice on the implications that come with providing supplies of goods and services on which VAT applies in Malta and the rest of Europe via a Maltese company. Our VAT specialists are also ready to advise on the requirements for registration of foreign operators as taxable persons for VAT purposes in Malta.

Our firm provides a number of important services to its clients with respect to VAT matters, including VAT registration, management of relations with the VAT department and preparing and submitting periodic VAT returns. We also offer professional advice on the right VAT treatment required in a particular transaction and handle VAT compliance and VAT refund administration for companies.

Our fully-fledged Vat Law and VAT Compliance team is ready to assist clients to ensure their business is fully cooperative with all statutory obligations under Maltese VAT law, to find the most efficient VAT structure for their business and apply for any relevant VAT refunds. Our VAT team can also assist with the setting up of internal systems and procedures which assist in the generation of VAT returns.  They can also conduct reviews of VAT returns and accounting records.  The team also has experience with businesses and entities which are partially exempt from VAT, exempt without credit or that undertake mixed activities.  

Partial exemption and non-business allocations add another layer of complexity to an already complex tax regime. Our team will ensure that your accounting systems are set up to deal with these intricacies.

Should clients wish, we can also carry out a VAT analysis which consists of an evaluation of the VAT processes and procedures within a business activity. The main reason would be to propose recommendations to update or reorganise their VAT affairs of the corporation and reduce possible forthcoming complications. Through this exercise we also seek to detect potential opportunities of achieving VAT savings and optimisation.