VAT Registration under Article 11 - Value Added Tax (VAT)
The aim of this article is to indicate the nature of Article 11 of Value Added Tax in Malta.
The Article 11 is mainly used by small businesses and sole traders.
Article 11 in Malta allows businesses to register for the VAT purpose by considering domestic thresholds.
Business which considers their sales at the level not exceeding €35,000 for selling goods and €30,000 for services can opt to be registered under Article 11.
It is important that by being registered under Article 11 you do not charge VAT, and you also cannot claim the VAT back on your expenses.
Once you reach the thresholds, or once you are certain of exceeding them for 12 months period (January – December), you should apply to change the Article 11 to Article 10.
Someone registered under Article 11 of the VAT Act would:
- Get a registration number that doesn’t start with “MT.” This number isn’t valid for doing intra-Community trade (trading with other countries in the EU).
- Need to check if they also have to register under Article 12 if they are involved in intra-Community trade.
- Have to give out receipts called fiscal receipts (not tax invoices) for all the sales they make, according to the rules of the VAT Act.
- Need to submit a simple tax return at the end of each year, usually by March 15th of the next year. But if they file it electronically by March 22nd, they won’t face any penalties.
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