Malta SME rules

SME Scheme – General features

Exemption

It is possible to opt for the SME scheme in Malta if you are established within the EU.

Transactions excluded from the SME scheme

The following transactions are excluded from the SME scheme: 

• Occasional transactions, like the supply before first occupation of a building or parts of a building or the supply of building land,
• Exempt cross-border supplies of new means of transport made from one Member State to another.

National annual threshold

The information on the national annual threshold is available on TEDB.
 

Domestic SME scheme

Simplified VAT obligations

A small enterprise established in Malta who applies the SME scheme in Malta only (domestic SME scheme) is released from the following VAT obligations: 

• to state the beginning of its activity
• to VAT register
• to submit periodical VAT returns
•  to issue invoices
• to keep accounts
• to submit administrative statements

Cross-border SME scheme

The cross-border SME scheme applies in the following situation(s):

1. The small enterprise applies the SME scheme in other Member States than the Member State of establishment, or;
2. The small enterprise applies the SME scheme both in the Member State of establishment and in other Member State(s).

Simplified VAT obligations

The VAT registration in each Member State where the small enterprise applies the SME scheme is replaced by a single prior notification to be submitted in the Member State of establishment. 

The periodical VAT returns are replaced by a single quarterly report for all Member States to be submitted in the Member State of establishment. 

Currency

The values of supplies of goods and services to indicate in the prior notification, in the update to a prior notification and in the quarterly reports must be in EUR. 

Way of submission

The prior notification, the update to a prior notification and the quarterly reports should be submitted by electronic means on this page.

Additional simplified VAT obligations

Exempt small enterprises applying the cross-border SME scheme in Malta are released from the following VAT obligations:

• to issue invoices for B2C supplies
• to issue full invoices for B2B supplies
• to keep accounts
• to submit administrative statements

Loss of simplified VAT obligations

Not applied, or;

Non-compliant small enterprises may be required: 

• to VAT register
• to submit periodical VAT returns

Transitional period

Malta does not apply any transitional period in case the national annual threshold / sectoral thresholds is/are exceeded during the current calendar year.

Malta applies a transitional period in case the national annual threshold / sectoral thresholds is/are exceeded during the current calendar year. The transitional period applicable can be found in TEDB database.

Practical examples of the application of the transitional period and its consequences are available in the Explanatory Notes.
 

Quarantine

Quarantine period in case of exclusion from the SME scheme

Small enterprises excluded from the SME scheme in Malta are not able to benefit from that exemption during a quarantine period. 

You can consult the quarantine period applicable in Malta on TEDB database.

Practical examples on the application of the quarantine period and its consequences are available in the Explanatory Notes.

Quarantine period in case of voluntary departure from the SME scheme

No quarantine period imposed.

Small enterprises who decide to voluntarily leave the SME scheme in Malta are not able to benefit from that exemption during a quarantine period. You can consult the quarantine period applicable in Malta on TEDB database. 

Appeals

Domestic SME scheme

Appeals should be addressed to your Member State of establishment (MSEST).

Not applicable 

Cross-border SME scheme

Member State of establishment (MSEST)

Appeals related to the following topics should be addressed to MSEST:

• Union annual turnover
• Prior notification, correction and update to a prior notification
• Quarterly reports and correction of a quarterly report
• Exclusion for exceeding the Union annual turnover

Member State of exemption (MSEXE)

Appeals related to the following topics should be addressed to MSEXE:

• National annual turnover
• Denial to access the cross-border SME scheme in MSEXE
• Loss of simplified VAT obligations in respect of MSEXE
• Exclusion for exceeding the national annual threshold/sectoral threshold in MSEXE

Not applicable

Calendar

VAT simplified procedures

VAT simplified procedures