Malta's Commissioner for Tax and Customs has published updated guidance requiring Article 11 VAT-exempt SMEs to configure fiscal cash registers to issue compliant receipts, introducing standardised receipt identifiers and replacing all previous guidance.
Malta’s Commissioner for Tax and Customs has released updated guidance on how small and medium enterprises registered under Article 11 must configure their fiscal cash registers to meet statutory receipt requirements.
The Commissioner for Tax and Customs issued guidelines under Article 75(2) of the VAT Act (Chapter 406, Laws of Malta) to provide official direction on sub-items 13(2)(a)(i) and 13(2)(a)(iv) of the Thirteenth Schedule to the VAT Act. Published on 13/07/2026, these rules replace and supersede all prior guidance on the matter.
Under Article 11 of the VAT Act, supplies made by registered small businesses are treated as exempt without credit. This status establishes two fundamental operational conditions:
- No VAT charged: Businesses do not charge VAT on the value of goods or services supplied.
- No input VAT recovery: Operators cannot recover input VAT incurred on business purchases, acquisitions, or importations.
Despite this tax-exempt status, Article 11 registered suppliers are legally required to issue a fiscal receipt for all supplies of goods and services made in Malta. This requirement applies to both business-to-business (B2B) and business-to-consumer (B2C) transactions.
The only statutory exemption applies to supplies that are exempt without credit under Part Two of the Fifth Schedule to the VAT Act (excluding sub-item 16(1) supplies).
According to the guidelines, receipts must clearly indicate the status of items by using the label “E” or “Exempt” to show that no tax is being applied. Additionally, the identifier “EXP” must be placed immediately before the business’s VAT registration number on all issued receipts.
These regulations ensure that the nature of the transaction is transparent and compliant with the VAT Act. Ultimately, these instructions replace all previous advice and provide a standardised method for exempt entities to record their sales correctly.
