Indirect taxes


Deloitte Malta presents a summary and analysis of the Malta Budget 2018 speech presented to the House of Representatives by the Hon. Prof. Edward Scicluna, Minister of Finance on 09 October 2017.

Reduction in VAT threshold for small enterprises

The Minister has announced that the amount of turnover per annum below which small undertakings may opt to register as a VAT exempt person (referred to as an article 11 type of VAT registration) will increase from the current €14,000 to €20,000.

Sustainability in the gaming and financial sectors

As a way of promoting growth in the gaming and financial sectors, Government is proposing the introduction of new VAT grouping regulations whereby two or more legally independent persons established in Malta who are bound by financial links, economic links and organizational links will have the option to register as a single taxable person. As a result of this, supplies between group members will not trigger a VAT charge, thus allowing members to outsource functions internally within the group without incurring an irrecoverable VAT cost.

Alignment of excise duty on steel rod and bars

It is being proposed that existing anomalies in excise duty applicable to steel rods and bars be eliminated through the alignment of excise duty applicable on the importation of similar products.

Reduced VAT rate on hiring of bicycles

A reduced VAT rate of 7% shall be introduced on the hiring of bicycles.

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