Monthly VAT Periods In Malta

A Faster Route to VAT Refund Recovery

The Malta Tax and Customs Authority (MTCA) has issued a Guideline on Applications for Monthly Tax Periods in accordance with Regulation 4(1) of Subsidiary Legislation 406.02. The guidance was published on July, 27, 2026, and provides a framework for VAT-registered businesses that regularly find themselves in a VAT refund position and wish to transition from quarterly to monthly VAT reporting periods.

For eligible businesses, this development may facilitate a more frequent recovery of excess input VAT, potentially improving cash flow and reducing the waiting period associated with the standard quarterly VAT cycle.

Who Can Apply?

Under Regulation 4(1) of S.L. 406.02, a person registered for VAT under Article 10 of the VAT Act may apply for monthly VAT periods where the Commissioner for Tax and Customs is satisfied that the input tax credit to which the person is likely to be entitled for four consecutive tax periods will exceed the output tax