Getting to grips with the Malta Value Added Tax rules for any particular country can take a good deal of head scratching and hard research before you are sure what you need to declare and where you can make valuable savings. Basing your business in Malta can, in fact, help you to reduce your running costs as their tax structure is geared towards promoting and encouraging companies to set down roots and contribute to the local economy.
If you are an established business in Malta then you will need to be VAT registered by the end of 30 days of making a taxable supply or an exempt with credit supply. If your business is outside Malta but goods are provided within the country you may be liable for paying value added tax and you will need to register also. Other concerns that need to be registered are if you have made an intra-Community acquisition in excess of €10,000.
For many businesses the overall benefits for setting up a company in Malta include:
With one of the lower rates of VAT in the European Union, Malta is fast becoming a welcoming place to set up a business for European and other international companies. There are a wide range of products and services that are either exempt with credit or exempt without credit that means many organisations can make significant savings if they play their cards right.
Many industries consider Malta VAT such as pharmacy, electronics and IT are beginning to see the benefits of using Malta as an operational base for their businesses. Malta is a multi-lingual country that has a strong and reliable workforce which is attractive to companies who want to set up business there. With the numerous financial advantages, including corporate tax breaks and manageable rates of VAT, the country has an excellent economic track record and offers a high standard of living for those who chose to reside there.