Malta: Reduced VAT rate on certain services effective 1 January 2024

A reduced VAT rate of 12% will apply effective 1 January 2024 to certain services

A reduced VAT rate of 12% will apply effective 1 January 2024 to certain services

As a result of the adoption of EU Council Directive 2022/542 (5 April 2022) regarding rates of value added tax (VAT), a reduced VAT rate of 12% will apply effective 1 January 2024 to the following services:

  • Custody (unless the said services qualify as VAT-exempt) and management of securities
  • Management of credit and credit guarantees by a person or body other than those who granted the credit
  • Hiring of a pleasure boat to a person according to an agreement for any term of part of a term that, when added to the term of a previous hiring, of the same goods or of other goods of the same kind, to the said person during the previous 12 months ending on the date of the beginning of the existing hiring, does not exceed five weeks
  • Services consisting of the care of the human body required to be delivered by a person in the exercise of any profession regulated by the Health Care Professions Act (Cap.464), including services supplied in the course of a health studio business of similar business, but not including exempt supplies referred to in item 11 of Part Two of the Fifth Schedule

Read an October 2023 report prepared by the KPMG member firm in Malta


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