Selling to Malta 2026 — VAT Rates, Rules & Compliance

This guide covers the Malta-specific rules, rates, and compliance requirements for sellers based outside the EU shipping to Maltese customers.

For the underlying EU mechanisms that apply across all member states, see:

• EU Overview — IOSS, OSS & Compliance — general obligations for non-EU sellers
• Selling to EU Consumers (B2C) — IOSS registration, the €150 threshold, charging VAT at checkout
• Selling to EU Businesses (B2B) — reverse charge mechanism and zero-VAT invoicing

VAT Rates in Malta

In Malta, VAT is officially known as VAT in English and Taxxa fuq il-Valur Miżjud (TVA/TAV) in Maltese. English is a co-official language and is used for all business and tax communications. When you sell to a Maltese consumer under the IOSS scheme, you must charge the correct Maltese VAT rate at checkout.

Standard Rate: 18%

Applies to the majority of goods: electronics, clothing (including children’s clothing), cosmetics, most digital services (SaaS, downloads, streaming), and physical goods not listed below.

Malta’s 18% standard rate is the third-lowest in the EU, after Luxembourg (17%) and Germany (19%).

Reduced Rate: 7%

Applies to:

• Tourism and accommodation services
• Certain medical devices

Reduced Rate: 5%

Applies to:

• Electricity supply for residential use
• Certain food and beverage categories (confectionery, ice cream, crispy snacks)
• Books (print)
• Newspapers and periodicals
• Certain medical products and equipment

Zero Rate: 0%

Applies to:

• Basic food items
• Pharmaceutical products
• Passenger transport

Your e-commerce platform should handle these category-level overrides, but you are responsible for assigning the correct Maltese VAT rate to each product. The 5% rate on confectionery and snack foods is a common source of miscategorisation.

Currency: Euro (EUR)

Malta uses the Euro and has done so since 1 January 2008. All invoices and VAT amounts are denominated in EUR.

Selling to Maltese Consumers (B2C)

No threshold for non-EU sellers

As a seller based outside the EU, there is no threshold for selling to Maltese consumers. The EU’s €10,000 threshold applies only to businesses established inside the EU. From your very first sale to a Maltese consumer, you must comply with Maltese VAT rules.

IOSS vs non-IOSS in Malta

If you sell physical goods under €150 to Maltese consumers, registering for IOSS is strongly recommended.

Without IOSS (DAP — Delivered at Place):

1. The parcel is stopped by Malta Customs (Malta Customs Department)
2. MaltaPost contacts the customer to collect outstanding VAT
3. The hidden cost: MaltaPost charges a customs clearance handling fee — typically €8–€12 per parcel
4. Malta’s market is small and highly internet-connected; Maltese consumers are experienced online shoppers who respond poorly to unexpected customs charges

IOSS eliminates carrier handling fees because VAT is cleared at the point of sale.

The €3 customs duty (from 1 July 2026)

A flat €3 customs duty per item applies to all parcels under €150 entering the EU from July 2026. Ensure shipping labels include accurate HS codes and product descriptions.

Island shipping considerations

Malta is an archipelago in the Mediterranean Sea. All international parcels arrive by air (Malta International Airport) or sea freight. There is no road connection to the European mainland. Shipping transit times from outside the EU to Malta are typically 5–10 working days for air parcel services. Heavier items or large packages may require sea freight, significantly extending delivery timelines.

Gozo and Comino are the other inhabited Maltese islands. Delivery to Gozo addresses involves a short ferry crossing from Malta; most carriers either route to Gozo via their own ferry arrangements or require customers to collect at a Malta pickup point. Verify your carrier’s Gozo delivery policy before advertising standard delivery to all Maltese addresses.

Selling to Maltese Businesses (B2B)

For sales to a VAT-registered Maltese business, the standard EU B2B rules apply.

1. Validate the VAT number. Maltese VAT numbers start with ‘MT’ followed by 8 digits (e.g., MT12345678). Always validate on VIES before zero-rating the invoice.
2. Reverse charge. Do not charge VAT. The Maltese business accounts for VAT on their own Maltese return.
3. Invoice statement. State “Reverse Charge” on your invoice (English is the co-official language and is standard for business invoices).

Key Compliance Requirements for Malta

Invoice retention — 10 years

Maltese tax law requires retention of all VAT invoices and related records for 10 years from the end of the relevant year.

Invoice requirements

Maltese invoices must include your VAT number, the customer’s address, a unique sequential invoice number, the applicable VAT rate per line item, and the supply date. Invoices may be in English (standard for all B2B transactions).

Market size context

Malta has a population of approximately 520,000 — one of the smallest markets in the EU. However, Malta has among the highest e-commerce penetration rates in the EU and a high-income, English-speaking population. Average order values tend to be above the EU median.

Multilingual market

English is co-official and widely spoken. Most Maltese consumers and businesses communicate in English. Maltese (the official language) is only occasionally used in formal business contexts. English-language content performs well.

Shipping to Malta: Documentation

• Electronic customs data: ensure your carrier transmits customs data electronically to Malta Customs.
• Accurate descriptions: use specific product descriptions with correct HS tariff codes.
• IOSS number: if using IOSS, your IOSS number must be electronically transmitted — manual notation is not sufficient.
• Gozo delivery: confirm with your carrier whether door-to-door delivery to Gozo addresses is supported.

Related Guides

• EU Overview — IOSS, OSS & VAT Rates
• Selling to EU Consumers — IOSS Guide
• Selling to EU Businesses — Reverse Charge
• EU Selling Setup Checklist

Selling from a Specific Country?

The Malta-specific rules above apply to any international seller.

• United Kingdom — Post-Brexit, GB sellers shipping to Malta face standard non-EU customs requirements. English-language market familiar with UK brands and products.
• United States — guide coming soon
• Australia — guide coming soon