Invoicing and Tax regulation in Malta

Invoicing Regulation

In Malta, invoices must be issued for all taxable supplies, including b2b, b2c, and b2g transactions. This is mandatory under the Malta VAT Act. Invoices must contain specific details such as the names and addresses of the supplier and customer, the date of issue, a unique sequential number, the VAT identification number, and a clear description of the goods or services provided.

Real-Time Reporting / Fiscalization

Currently, Malta does not require real-time reporting or fiscalization for businesses. However, businesses should still maintain accurate records of all transactions for tax purposes, and these records may need to be submitted to the Committee for Taxation within specified time limits.

E-Invoicing

E-invoicing is not mandatory in Malta. However, it is a convenient and efficient way to issue and track invoices, and is hence widely used by businesses in all sectors. The use of e-invoicing can simplify the invoicing process and ensure proper record keeping for VAT and tax compliance purposes.

VAT/GST/Tax Compliance

In Malta, the standard VAT rate is 18%, but reduced rates of 7% and 5% may apply to certain goods and services. VAT registration is compulsory for businesses with a turnover exceeding €20,000. This includes b2b, b2c, and b2g transactions. Accurately calculating and paying VAT is crucial as non-compliance can lead to penalties.

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