Malta’s Tax and Customs Administration has issued an explanatory note clarifying VAT obligations for taxi operators using online ride-hailing platforms, covering fare accounting, input VAT recovery, and the treatment of vehicle sales and private use.
The Malta Tax and Customs Administration has issued an explanatory note on 26 January 2026, outlining the Value Added Tax (VAT) obligations for taxi operators using online ride-hailing platforms.
The explanatory note clarifies VAT treatment for services provided through digital platforms, including the accounting of VAT on fares, service fees, and commissions charged by platforms. It distinguishes between different taxpayer categories under Articles 10 and 11, explaining how each should self-charge and report VAT.
It also addresses the recovery of input VAT on vehicle-related expenses, VAT implications of private use of taxis, and the tax treatment when selling a taxi or cancelling a business registration.
Detailed examples are included to help operators navigate intermediary services and cross-border transport transactions.
The note, described as a work in progress, is not legally binding and does not represent a formal opinion of the Administration.
The Administration plans to update the explanatory note periodically to reflect evolving practices in the taxi and ride-hailing sector.
