Malta’s VAT Gap Hits 24.2%, More Than Double EU Average, Prompting Digital Tax Reforms

• Malta’s VAT gap in 2023 was 24.2%, over twice the EU average of 9.5%, indicating major revenue and compliance issues.
• Corporate tax compliance is low, with only 63% of returns filed for 2023 and 57% for 2024; on-time filings are just 44%.
• The Malta Tax and Customs Administration plans to accelerate Digital Real-Time Reporting (DRR) and e-invoicing to improve compliance and transparency.
• These digital initiatives aim to simplify compliance, reduce errors, and prepare for the EU’s VAT in the Digital Age (ViDA) mandate by 2030.
• The reforms are part of a broader strategy to shift Malta’s tax system toward proactive and transparent governance.

Source: timesofmalta.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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