The 12 % VAT Rate

LN 231 of 2023 introduced a reduced rate of VAT of 12% with effect from 1 January 2024, to 4 categories of services:

• Custody and management of securities
• Management of credit and credit guarantees by a person or body other than those who granted the credit
• Hiring of a pleasure boat for a period not exceeding 5 weeks within a 12 month period (subject to the conditions specified)
• Services consisting of the care of the human body by a medical professional (subject to the conditions specified)

See MIT Member Post 7 October 2023.

MTCA Guidance

The Malta Tax & Customs Administration has issued guidelines on the interpretation and application of this reduced rate.

CLICK ON THE LINKS BELOW TO ACCESS THE MTCA GUIDANCE ON THE 12% VAT RATE FOR:

• Custody of securities
• Management of securities
• Management of credit and credit guarantees by a person or body other than those who granted the credit
• Hiring of a pleasure boat for a period not exceeding 5 weeks
• Services consisting of the care of the human body

Updated VAT Return

The standard VAT Return for article 10 registered persons has been updated, for quarterly VAT periods starting on or after November 2023, to reflect the new 12% rate which is relevant for supplies of the above services where the tax point arises on or after 1 January 2024. View a specimen VAT Return here.*

*NOTE - a VAT Return can only be completed and submitted electronically, via cfr.gov.mt