Increase in VAT registration threshold

Deloitte Malta Tax Alert

24 May 2018

On 22 May 2018, by means of Legal Notice 163 of 2018, the Sixth Schedule to the VAT Act has been amended with effect from 1 July 2018. By virtue of this amendment, taxable persons whose economic activity consists principally in supplies of services with a high value-added and whose annual turnover is no higher than €20,000 shall be eligible to opt to register for VAT as a small undertaking in terms of article 11 of the VAT Act, thereby being exempt from charging VAT. This represents a €6,000 increase from the current threshold. Furthermore, the annual turnover threshold to be eligible to shift from an article 10 to an article 11 VAT registration has also been increased from €12,000 to €17,000 as of 1 July 2018.

These amendments implement Council Implementing Decision (EU) 2018/279.

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