Changes to the VAT in Malta

The Maltese Minister for Finance and Employment has announced that the amendment of some VAT exemptions for certain goods and services will be applied retroactively from January 1, 2021. This is in response to the global pandemic.

It was also decided that goods and services purchased in response to the pandemic will be treated as exempt credit supplies if they meet the following conditions:

• Supplies to the European Commission
• Supplies to a person established under EU law.

Goods acquired for the purpose of further supplies for consideration are excluded.

Also exempt from VAT are imports of similar goods initiated by the EU Commission or by an EU agency or body established under EU law.