ARTICLE · 22 JANUARY 2025

Updates To The VAT Act – SME Scheme

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Significant changes to the VAT Act were enacted by Act XXXVIII of 2024, which was passed on December 17, 2024, to bring it into compliance with the EU VAT Directive (Dir 2006/112/EC)...

MaltaTax

Chris Armstrong

Significant changes to the VAT Act were enacted by Act XXXVIII of 2024, which was passed on December 17, 2024, to bring it into compliance with the EU VAT Directive (Dir 2006/112/EC), as amended by Directive 2020/285. These changes were particularly pertinent with regard to the special scheme for small and medium-sized companies. The key aspects are as follows:

Supplementary Legal Notices

Multiple Legal Notices (345 to 353 of 2024) have been issued to amend various schedules of the VAT Act. These updates are intended to facilitate the smooth implementation of the new rules.

Expansion of Scope for SMEs

The updated rules broaden the definition of 'Small Enterprises' (referred to as Small Undertakings under Article 11 of the VAT Act). Businesses registered under this scheme can now opt for special treatment for:

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