A study on the implementation of real-time tax reporting in Malta

MIT representatives attended the closing event of the MTCA project – Strengthening tax compliance through implementation of real-time reporting in Malta – which was held on 5 June 2025.

This project, which explored the feasibility of and options for the implementation of Real-Time Reporting (RTR) in Malta in the areas of Payroll and VAT, was conducted by the MTCA with the support of the Technical Support Instrument (TSI) funded by the EU.

The event was opened by the Commissioner for Tax & Customs, Mr Joseph Caruana, who explained that the transition to real time reporting is being considered as a key move toward addressing current deficiencies in the current system of tax administration, and developments at an EU level (the VAT in the Digital Age package) has made the shift toward real-time reporting in the sphere of VAT mandatory for intra-EU transactions with effect from July 2030.

The initiative, which has explored the feasibility of the implementation of real-time reporting is part of the MTCA’s strategy for modernising the way taxes are administered, as announced in the MTCA’s Delivering Transformation Strategy 2023-2025. The project looked at the various options for the implementation of real-time reporting, examining best practices across the EU, and considering elements that would ensure that any reforms would be aligned with the VAT in the Digital Age package as well as the OECD’s vision for Digital Transformation of Tax Administrations.

It is anticipated that RTR will help tax payers by giving business pre-filled data, audit trails, and reducing the burden of compliance, strengthen MTCA’s enforcement capabilities and enhance MTCA’s efficiency by automating data collection, thus freeing resources to be redirected to assisting taxpayers.

***

Real-time reporting in VAT: the VAT in the Digital Age Package