Malta: VAT food guidance, invoice penalties, and new corporate tax rate

Guidelines will be issued to clarify the VAT exemption for food, with particular focus on ready-to-eat retail food.
A new administrative penalty regime will apply to incorrect invoices and fiscal receipts: €100 for the first failure, €200 for the second, €400 for the third, and €500 for the fourth and later failures within 24 months.
Paying the penalty within 30 days would remove liability for the specific failure covered by the penalty.
The budget also continues the earlier family income tax reductions for 2027 and introduces a new 25% tax rate on retained/reinvested profits for certain companies with turnover up to €1 million, while distributed profits remain taxed at 35%.

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.