Indirect taxation

Indirect taxes in Malta include the following:

• Value added Tax (VAT) chargeable on supplies of goods and services made in Malta for a consideration in the course of business. The Maltese VAT system is fully harmonised with the EU VAT regime except for certain derogations negotiated by Malta during its accession process and which are included in the Treaty of Accession. VAT is charged at the standard rate of 18%. Reduced rates of 5% or 0% apply in respect of certain supplies;
• Import duty levied on imports coming from outside the EU. The rate of duty varies and depends on the type of product imported. Exemptions apply including exemptions on temporary importations;
• Excise duty charged on manufactured tobacco, mineral oils and alcohol produced or imported in Malta;
• Stamp duty which is a duty on documents and transfer chargeable on a number of transfers and transactions including transfers of property, marketable securities, insurance policies and auction sales. Exemptions apply in the case of transfer of immovable property between group companies and transfer of shares in a restructuring process within a group;
• Eco contribution tax levied on certain imported and/or manufactured goods that result in waste. The contribution is calculated at different rates depending on the type of product and is payable by the importer or manufacturer of the goods concerned;
• An oil bunkering tax at a flat rate per metric tonne is charged on the bunkering of certain fuel oils used for ships and their machinery and supplied free from customs and other duties;
• Motor vehicle registration tax charged upon the vehicles first registration in Malta. Rates of tax depend on a number of factors relating to the vehicle including the amount of CO2 emissions, particulate matter, age and value.

Winnings from gaming are not subject to tax in the hands of the recipient. A gaming tax however is chargeable on gaming operators which require a licence from the Lotteries and Gaming Authority (LGA).