Malta tax guide
The €35,000 Malta VAT threshold (Article 11), explained
If you're self-employed in Malta, one number quietly decides how you deal with VAT: €35,000. Stay under it and you can trade as a small undertaking under Article 11: no VAT charged, one annual declaration, and far less admin. Cross it and you move into Article 10, charging 18% VAT and filing quarterly.
The rule sounds simple, but the details are where people trip up, especially what actually counts toward the €35,000 and which date the taxman uses to measure it. Here's the whole thing, in plain English.
What counts toward the €35,000
The threshold is a single figure: €35,000 of domestic turnover, measured over the calendar year, exclusive of VAT. Three words in that sentence do a lot of work.
- Domestic: turnover from supplies made in Malta. It's about your Maltese economic activity, not every euro that lands in your account.
- Calendar year: the clock runs 1 January to 31 December, then resets. It is not a rolling 12-month window.
- Exclusive of VAT: you count the net value of what you supplied, before any VAT is added on top.
So the question isn't "how much did I get paid?" It's "how much did I supply, net, in Malta, this calendar year?"
Why the supply date matters
Turnover is attributed by supply date, the day goods are delivered or a service is actually performed. The invoice date and the payment date are irrelevant for the threshold.
This catches people out at year-end. If you finish a project in December but invoice in January, that turnover belongs to December's calendar year, because that's when the work was supplied. Chasing a slow payer into the new year doesn't move it either: the supply already happened. When you're near €35,000, the tax point, not your bank statement, is what decides whether you've crossed.
Article 11 vs Article 10
These are the two VAT registration types for most freelancers. Article 11 is the small-undertaking exemption; Article 10 is standard VAT registration.
| Article 11 (exempt) | Article 10 (standard) | |
|---|---|---|
| Turnover | Up to €35,000 | Above €35,000 (or by choice) |
| VAT charged | None on your invoices | 18% standard rate |
| Reclaim input VAT | No | Yes |
| Returns | Annual declaration | Quarterly returns |
Article 11 keeps life simple and your prices lower, but you can't reclaim the VAT you pay on business costs. Article 10 means charging 18% and more paperwork, but you recover input VAT, which can suit you if your clients are themselves VAT-registered businesses. Some freelancers register for Article 10 voluntarily below the threshold for exactly that reason.
What happens when you cross it
The Article 11 exemption is lost the day your calendar-year turnover exceeds €35,000. From that point:
- Apply to switch to Article 10 within 15 days of crossing.
- Your Article 10 registration takes effect from the 1st of the following month.
- From that effective date, you start charging 18% VAT and filing quarterly.
It's a hard line, not a warning shot, which is exactly why watching your running total by supply date through the year matters. The 18% rate you'll then be charging, and what it applies to, is covered further down.
The filing dates
| Registration | Return | Due |
|---|---|---|
| Article 11 | Annual declaration (previous calendar year) | 15 February (e-filing grace to 22 March) |
| Article 10 | Quarterly VAT return | 15th of the 2nd month after the quarter ends (+7 days if filed and paid online → the 22nd) |
So an Article 10 quarter ending 31 March is due by 15 May, or the 22nd if you file and pay online. Article 11 stays gentle: one declaration a year by 15 February for the year just gone.
The 18% rate, briefly
Malta's standard VAT rate is 18%. Reduced rates of 12%, 7%, 5% and 0% exist for specific supplies, but most freelance services sit at the standard 18%. Under Article 11 you don't charge any of it; the moment you're on Article 10, 18% is what goes on top of your net fee.
All of this is administered by the Malta Tax and Customs Administration (MTCA), the body formerly known as the VAT Department and CfR.
Keeping an eye on it
The threshold isn't hard to understand: it's just tedious to track, because you have to keep a live, VAT-exclusive, supply-dated running total across the whole year. Miss the moment you cross and you're already late on a 15-day clock.
Settlano provides planning estimates, not tax, legal or accounting advice. Always confirm your position with your accountant or the MTCA.
Common questions
Is the €35,000 Malta VAT threshold based on calendar year or rolling 12 months?
Calendar year. Turnover is measured from 1 January to 31 December and resets each year. It is not a rolling 12-month window. It's also measured exclusive of VAT and on domestic supplies only.
Does the invoice date or the supply date count for the VAT threshold?
The supply date, the day the goods were delivered or the service was performed. Invoice and payment dates are irrelevant. Work finished in December counts in that calendar year even if you invoice in January.
What must I do when I cross €35,000 in Malta?
Apply to switch from Article 11 to Article 10 within 15 days of exceeding the threshold. Your Article 10 registration takes effect from the 1st of the following month, from which you charge 18% VAT and file quarterly returns.
What's the difference between Article 11 and Article 10 VAT in Malta?
Article 11 is the small-undertaking exemption for turnover up to €35,000: no VAT charged, one annual declaration, but no input-VAT reclaim. Article 10 is standard registration: you charge 18%, file quarterly, and can reclaim input VAT.
Settlano works all of this out from your own numbers, automatically, and reminds you before every deadline.
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