Malta adds third reduced VAT rate
Malta is to add to its existing 7% and 5% reduced VAT rates with a new reduced rate of 12%. There is also some zero-rated supplies.
The new rate applies from 1 January 2024 are the change was gazetted.
The standard VAT rate of 18% will remain unchanged.
The 12% rate will apply to:
- Hiring of pleasure boats
- Certain health care services
- Securities custody services; and
- Certain credit and credit guarantee management services
Like all EU states, Malta is now able to introduce a wider range of reduced VAT rates following the 2022 adoption of the reduced VAT rate freedoms.