VAT Consultancy
Value Added Tax, commonly known as VAT, is central to business operations in Malta and the EU. Non-compliance by firms that must register for and charge VAT on their goods and services can result in penalties, audits and possibly disruptions. At Pauliana Said Accountancy and Tax Consultants, we help businesses navigate through all VAT-related aspects and stay compliant.
In Malta, all businesses whose annual turnover exceeds the threshold of € 35,000 for businesses selling goods, €30,000 for service providers and €20,000 for businesses in specific exempt sectors need to be registered for VAT. Companies also have the option to register voluntarily for VAT even if they do not exceed the threshold, as this has the advantage of claiming VAT refunds on business expenses. VAT-able companies must charge VAT on their sales and submit VAT returns periodically to the Maltese Tax Authorities. VAT reports detail VAT collected from customers, VAT paid on purchases and Net VAT payable or refundable.
While the standard VAT rate in Malta stands at 18%, the hospitality, medical, cultural, and e-books sectors have reduced rates, while exports, financial services, aviation and international transport are exempt. Businesses are obliged to issue VAT-compliant invoices that apart from standard details, include the business’ VAT number, the rate applied and VAT charged. Companies involved in EU cross-border trade also need to be aware of the VAT OSS (One-Stop-Shop) Rules.
Our services in this sphere can be described as 360 degrees assistance for startups, small businesses and companies, starting with VAT registration according to the category and size of business operations and culminating in following up with clients to ensure timely VAT Returns. Firms involved in cross-border business must also factor in EC Sales Lists and Intrastat Declarations as applicable. Special considerations are factored in advising on cross-border VAT strategies, import/export VAT solutions and VAT exemptions and recovery for eligible sectors. Beyond VAT planning and optimisation, we also handle VAT audit support and dispute resolution. We assist with VAT Audits conducted by the Maltese Tax Authorities, handling VAT discrepancies, penalties and appeals and representing businesses in VAT dispute resolutions. Another aspect that we cover is consultancy related to compliance with the EU VAT OSS (One-Stop Shop) Scheme and advice pertaining to meeting VAT obligations for digital sales and online marketplaces.
All the above services are provided by experienced VAT professionals who are well-versed in the Maltese and EU VAT laws. Together with our clients, we look at strategies that will help reduce liabilities and improve cash flow. We believe no business should be daunted by a lack of appropriate guidance about VAT matters. VAT structuring, reporting, and compliance is key to efficiency, and we are here to help you achieve that milestone.