2025 VAT Updates Announced in Malta

Healthcare VAT exemptions
From 1 January 2025, Malta introduced VAT exemptions with input deduction for targeted healthcare products, including female sanitary items, cancer patient accessories, incontinence devices, scalp cooling systems, and supportive medical garments, reducing costs and improving access for patients.
EU Small Business (SME) VAT Scheme
Malta adopted the optional EU SME VAT scheme from 1 January 2025, allowing businesses with EU turnover under €100,000 and domestic turnover under €35,000 to opt for VAT exemption, simplifying cross-border compliance for small enterprises.
Updated definition of “small undertakings”
Under Article 11, Malta expanded the small undertaking turnover threshold (€35,000) to include previously exempt supplies, such as immovable property, financial services, and insurance-related transactions, potentially accelerating VAT registration requirements for affected businesses.
VAT registration procedural updates
Guidelines issued 7 April 2025 clarify that Article 11 VAT registration is effective from the first day of the application month, with no retroactive effect, providing businesses with a predictable registration timeline and compliance certainty.