Malta authorised to apply increased threshold for small undertakings till 2024

In terms of Council Implementing Decision (EU) 2020/1662 of 3 November 2020 Malta’s request to continue to apply a special measure derogating from Article 287 of Directive 2006/112/EC, and to increase the threshold for small undertakings, was acceded to.

To date a €20,000 threshold applies to supplies of services with a high value added (low inputs). This represents a derogation from Article 287 of the EC VAT Directive (Directive 2006/112/EC) which sets the maximum lowest threshold at €14,600. In 2018, Malta received authorisation to increase the threshold for the lowest of the three categories to 20,000 until 30 December 2020 (Implementing Decision (EU) 2018/279 ). On 5 June 2020, Malta requested authorisation from the Commission to continue to derogate from Article 287 of the VAT Directive and to apply this increased threshold until 31 December 2024 (See MIT News 5 October 2020).