Article 10 vs Article 11 VAT registration in Malta
Charging VAT and reclaiming input VAT under Article 10, or staying under the small undertaking exemption of Article 11.
Malta's VAT Act has two main registrations for local businesses. Article 10 is standard registration: you charge VAT on taxable supplies, issue tax invoices, file periodic returns and can recover input VAT. Article 11 is the exempt registration for small undertakings: you do not charge VAT, you cannot recover input VAT, you issue documents without VAT and you file a simplified annual declaration. Thresholds depend on the type of activity, with €35,000 commonly cited for businesses mainly supplying goods and lower amounts for many services, and Malta has updated the rules to reflect the EU small-enterprise scheme. Check the current guidelines on the Malta Tax and Customs Administration website before you decide.
- Article 10: charge VAT, issue tax invoices, file returns, recover input VAT.
- Article 11: no VAT charged, no input VAT recovery, simplified annual declaration.
- Thresholds depend on the type of activity and are updated; always check the current guidelines.
- Article 12 is a separate registration for certain cross-border purchases and can apply alongside Article 11.
How it works
Estimate your annual turnover and the type of activity: mainly goods, or mainly services.
Compare that with the current threshold in the official small-enterprise guidelines. If you are above it, you must register under Article 10.
If you are below it, you can choose Article 11. Consider your input VAT: if you have large VAT-bearing costs and business customers, Article 10 may be better even below the threshold.
Under Article 10, put the VAT rate and amount on each invoice. Under Article 11, do not show VAT and use the document format the Act prescribes.
Monitor turnover during the year. If you exceed the threshold, register under Article 10 within the time allowed by the authority.
Legal references
- VAT Act, Chapter 406 of the Laws of Malta, Articles 10 and 11 — registration and small undertakings.
- Malta Tax and Customs Administration: Guidelines in relation to the VAT rules applicable to small enterprises.
- Council Directive 2006/112/EC — special scheme for small enterprises.
Frequently asked questions
What is the Article 11 threshold?
It depends on the activity. €35,000 is commonly cited for businesses mainly supplying goods, with lower entry and exit amounts for other activities, and the rules were updated for the EU small-enterprise scheme. Read the current official guidelines.
Can an Article 11 business recover input VAT?
No. The exemption removes the right to recover input VAT on purchases.
Do Article 11 businesses show VAT on invoices?
No. They do not charge VAT and issue a document without VAT. Charging VAT without being registered under Article 10 is not permitted.
What is Article 12?
It is a registration for accounting for VAT on certain cross-border acquisitions, such as services from suppliers established outside Malta. It can apply even if you are registered under Article 11.
Does 4invoices check my VAT registration or threshold?
No. 4invoices does not verify tax IDs, does not monitor turnover and does not file returns. You choose the VAT rate on each line, including 0% if you do not charge VAT, and can add a note. It supports any currency with an exchange rate and PDF download, with a 6-month free trial and no card.