This free tool enables you to calculate VAT to add or subtract from a price.
Malta country profile
Malta - the smallest country in the European Union - is located in the middle of the Mediterranean Sea, a little southeast of Sicily. With an area of about 300 km², it has only a fraction of the second largest country - Luxembourg - but with about 400,000 inhabitants, is only slightly below its population. Although one assumes a relatively high population density, this is only true for the few cities. Most of the islands are sparsely populated and dotted with small picturesque coastal villages. Malta consists of three inhabited islands: the main island Malta, the small "sister" Gozo and the island Comino, which has just four inhabitants. Tourism is very important in Malta. Although the number of tourists has increased tenfold in the last 50 years, Malta has not yet been overrun by mass tourism. This may be due to the fact that there are very few sandy beaches. Rather, the rugged coastal regions are considered a true paradise for divers. Also culturally interested travelers will find on Malta countless witnesses of the turbulent millennia of history. Since Malta was a crown colony of Great Britain until 1964, English is the second official language and is also widely spoken by the population. Despite the constantly changing siege of different nations over the centuries, the population has preserved its own language - Maltese, a language developed from Arabic.
Wat are the VAT rates in Malta?
Malta is economically a very stable country. This is probably also the reason why the VAT - called the "Value added tax" - was only introduced in 1995 and has only been increased once. Starting with 15% and a reduced tax rate of 5%, the standard tax rate was increased to 18% in 2004, and there is also a zero tax rate. In January 2011, an intermediate tax rate of 7% was introduced, which is only applied to hotel accommodation.
• With reduced taxrate of 5% is taxed:
o Newspapers, magazines
o Medical devices
o Cultural events
o Hotel accommodation (since January 2011 at 7%)
• The zero tax rate applies to
o Social benefits
o Medical services
o Passenger transport
Malta thus pursues a sound fiscal policy that places little burden on the basic needs of the population.
How to calculate VAT
The Value Added Tax (VAT) is calculated directly on the sale price of the product / service concerned. As an entrepreneur, you must therefore know the valid VAT rate for your activity and mention on your invoice:
- the net sale price with VAT excluded
- the rate of VAT applied
- the amount of VAT that this represents
- the total sale price with all taxes included (VAT included)
Calculation of VAT from the net price
The calculation of the VAT amount based on the price excluding VAT is calculated as follows:
standard rate: (net price exclusive of VAT / 100) x 118 = total price with VAT
reduced rate: (net price exclusive of VAT / 100) x 105 = total price with VAT
Calculation of VAT from the total price
The calculation of the amount of VAT based on the all inclusive price is as follows:
standard rate: total price inclusive of VAT / 1,18 = net price without VAT
reduced rate: total price inclusive of VAT / 1,05 = net price without VAT