Malta Introduced a New Zero Rate Exemption for VAT Purposes

Legal Notice 12 of 2024 was published last week and this sees an introduction of a new zero rate exemption for VAT purposes. The legal notices introduced a new exemption with credit provision for supplies made to, and importations/acquisitions made by, non-profit organisations that are recognized by the Malta Tax and Customs Administration and whose activity is focused around the supply of goods which are essential to compensate or overcome disability. The law is put in place to help reduce the tax burden of non-profit organisations that procure such goods and then provide them for free to those who need them.

Further information and guidance will be issued by the CFR in the following weeks. However, should you require any further information in this respect please do not hesitate to get in touch with our experts.