Malta’s Commissioner for Tax and Customs published new guidelines on the VAT exemption for small enterprises on 7 April 2025, , following amendments introduced by Act XXXVIII of 2025.
The guidelines clarify the application of the exemption under the VAT Act for both domestic and cross-border activities involving small businesses established in Malta and other EU Member States.
Key provisions include:
The article 11 registration is relevant to taxable persons established in Malta who wish to benefit from the exemption for small enterprises for supplies made in Malta. Applies to Maltese enterprises making supplies in Malta, with an annual turnover threshold of EUR 35,000.
The article 11A registration is relevant to taxable persons established in Malta who wish to benefit from the exemption for small enterprises for supplies made in other Member States.
The article 11B registration is relevant to taxable persons established in another Member State who wish to benefit from the exemption for small enterprises for supplies made in Malta.
The document provides practical guidance on eligibility, registration requirements, and how to calculate turnover thresholds, in line with updated rules effective from 1 January 2025. It also references changes made under Legal Notices 344 to 352 and clarifies that the exemption does not grant the right to deduct input VAT.
