The recent budget of Malta for the year 2015 has cut down the value added tax (VAT) registration threshold from EUR 14,000 to nil. The value added tax (VAT) registration threshold is the amount above which an entrepreneur has to register with the VAT authorities for and then charge and collect value added tax (VAT). It is based on any taxable turnover supplies of goods or services subject to VAT. The value added tax (VAT) Directive of European Union sets a target threshold around EUR 5,000 per year, even if countries for example the UK have derogation like the UK threshold is currently ÂŁ81,000 per year.