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Malta To Continue To Apply EUR20,000 VAT Registration Threshold

Tuesday, November 17, 2020

Malta has received approval from EU authorities to extend its heightened value-added tax registration threshold for certain suppliers of services.

Under Article 287 of the EU VAT Directive, Malta is permitted to apply the following VAT registration thresholds:

  • EUR37,000, if the taxpayer's economic activity consists principally in the supply of goods;
  • EUR24,300, if the taxpayer's economic activity consists principally in the supply of services with a low value added (high inputs); and
  • EUR14,600, in other cases – namely supplies of services with a high value added (low inputs).

Under a derogation approved for Malta that was set to expire at the end of the year, Malta was permitted to derogate from Article 287 in applying a heightened VAT registration threshold for this final category of taxpayers of EUR20,000, rather than EUR14,600.

In Council Implementing Decision (EU) 2020/1662, published in the EU's Official Gazette on November 10, 2020, Malta has now received approval to continue to apply the derogating measure until December 31, 2024.