Malta's Tax and Customs Administration has enabled requests to switch between Article 10 and Article 11 VAT registrations through the VAT e Services portal, while outlining the requirements, obligations and de-registration rules that apply to businesses under the country's various VAT registration regimes.
Malta’s Tax and Customs Administration has announced that requests to switch between VAT registrations under Article 10 and Article 11 of the VAT Act can now be submitted through the VAT e Services portal. In Malta, persons carrying out economic activity are generally required to register for VAT.
Taxable persons established in Malta that make supplies for consideration, other than supplies exempt without credit, must register under Article 10, the standard VAT regime.
However, those whose annual turnover does not exceed the domestic threshold of EUR 35,000 may opt to register under Article 11 as an exempt small enterprise.
Types of VAT registration
- Article 10 (Full Registration): This is for persons making taxable supplies who wish to (or must) charge VAT. It is the only registration type that allows for the recovery of VAT incurred on business purchases. Registered persons are assigned an “MT” prefix, must issue fiscal receipts or tax invoices, and generally submit VAT returns every three months.
- Article 11 (Small Enterprise): This is an optional registration for those below the turnover threshold. Under this article, you cannot charge VAT on supplies and cannot recover VAT on purchases. You are assigned a number without the “MT” prefix and must submit a simplified annual declaration.
- Article 12: This applies to non-taxable legal persons or taxable persons not registered under Article 10 who make intra-community acquisitions. Registration is required if acquisitions of goods exceed EUR 10,000 in a calendar year, or immediately upon receiving taxable services from abroad, as there is no threshold for services. There is no mechanism for VAT recovery under Article 12.
- Article 11A: This relates to the EU SME Scheme for supplies made outside Malta but within the EU.
Registration and rectification
VAT registration is conducted online via the CFR Registrations Online Services, usually requiring a Maltese e-ID. Applicants must provide identification, and companies must submit their Memorandum and Articles of Association.
A person can request to switch from Article 10 to Article 11, but they generally do not qualify as a small enterprise for the first 12 months of registration unless they have claimed no input tax and receive Commissioner approval. Conversely, those under Article 11 must inform the authorities to switch to Article 10 as soon as they know they will exceed the threshold. If a registration was previously cancelled, it can be re-activated with the same unique VAT number.
De-registration
Taxable persons must apply to cancel their registration within 15 days (or 15 working days for Article 11A) of ceasing their economic activity or no longer qualifying for their specific registration type. Before de-registration is finalized, all pending compliance obligations and outstanding balances must be settled. For Article 10 registrants, de-registration triggers a “self-supply” rule where VAT must be accounted for on all remaining business assets on which input VAT was previously claimed.
Partnerships
If a partnership of two people is reduced to one partner, the partnership must be de-registered, and the remaining individual must register in their own name. If the partnership remains at two or more partners despite changes, the registration number stays the same, though the authorities must be notified of the incoming or departing partners with a new signed agreement.
