VAT rates in Malta
| Rate | Type |
|---|---|
| 18% | Standard |
| 7% | Reduced |
| 5% | Reduced |
Rates as of October 1, 2026. Zero rates and exemptions are not listed. Which rate applies depends on the exact product, so check with the tax authority of Malta before you invoice.
The standard rate of 18% is the 3rd lowest of the 30 European countries on this site. See the rates of every country to compare.
VAT on common amounts in Malta
Net amounts in EUR with the VAT and the gross total at 18%, and the gross total at the reduced rates of 7% and 5%.
| Net | VAT 18% | Gross 18% | Gross 7% | Gross 5% |
|---|---|---|---|---|
| €10.00 | €1.80 | €11.80 | €10.70 | €10.50 |
| €20.00 | €3.60 | €23.60 | €21.40 | €21.00 |
| €50.00 | €9.00 | €59.00 | €53.50 | €52.50 |
| €100.00 | €18.00 | €118.00 | €107.00 | €105.00 |
| €250.00 | €45.00 | €295.00 | €267.50 | €262.50 |
| €500.00 | €90.00 | €590.00 | €535.00 | €525.00 |
| €1,000.00 | €180.00 | €1,180.00 | €1,070.00 | €1,050.00 |
| €5,000.00 | €900.00 | €5,900.00 | €5,350.00 | €5,250.00 |
Taking VAT out of a price in Malta
Divide the gross price by 1 plus the rate. A price of €118.00 including 18% VAT is €118.00 ÷ 1.18 = €100.00 net, so the VAT is €18.00. Taking 18% off €118.00 would give €96.76, which is too low, because the VAT was charged on the net price.
Malta compared with its neighbors
| Country | Standard | Reduced |
|---|---|---|
| Italy | 22% | 10%, 5%, 4% |
| Malta | 18% | 7%, 5% |
Sending a bill? The invoice generator lists net, VAT and gross for you, and the profit margin calculator shows what is left once VAT is out of the price.
Frequently asked questions
What is the VAT rate in Malta?
The standard VAT rate is 18%. Reduced rates of 7% and 5% apply to certain goods and services. These are the rates as of October 1, 2026.
How do I remove 18% VAT from a price?
Divide the gross price by 1.18. For example, €118.00 including VAT is €100.00 before VAT, so the VAT is €18.00.
What is VAT called in Malta?
Simply VAT, short for value added tax. On invoices it appears with the rate next to it, for example "18%", and the net amount, the tax and the gross total are listed separately.