Malta VAT on services related to immovable property
Architects, engineers and property specialists: where the service is taxed, when reverse charge applies and what to put on the invoice.
Under the EU place-of-supply rules, services connected with immovable property, such as an architect's plans, an engineer's supervision or property valuation, are generally taxed where the property is located. Malta follows these rules. That means a Maltese architect designing a building in Malta charges Maltese VAT, while a Maltese architect designing a building in Spain generally does not, and the Spanish rules decide the treatment. When a foreign supplier provides a service taxable in Malta to a Maltese customer, the customer may have to account for the VAT under the reverse charge. The exact treatment depends on the facts, so keep the contract and the property location on file.
- Property in Malta: the service is generally taxable in Malta at the applicable rate, normally 18%.
- Property in another country: the service is generally taxed there, not in Malta.
- Foreign supplier, Maltese customer, property in Malta: the reverse charge may apply to the customer.
- Show the property location and the supply description clearly on the invoice.
How it works
Identify the property. Is the service directly connected to a specific building or land, and where is it located?
If the property is in Malta and both parties are established there, issue a normal VAT invoice with the rate on each line.
If the property is in another country, check that country's VAT rules before issuing the invoice, and state the reason for not charging Maltese VAT.
If a supplier outside Malta serves you for property in Malta, ask for an invoice without local VAT and account for the reverse charge on your VAT return if it applies.
Keep the contract, plans or site address and your invoice, because the location is the key evidence.
Legal references
- Council Directive 2006/112/EC, Article 47 — place of supply of services connected with immovable property.
- VAT Act, Chapter 406 of the Laws of Malta — place of supply and accounting for VAT on services from abroad.
- Council Implementing Regulation (EU) No 282/2011 — definitions for services connected with immovable property.
Frequently asked questions
Is an architect's design work always connected with immovable property?
Not always. The service must have a sufficiently direct link to a specific property. General consulting that is not tied to a building can follow the general B2B rule instead.
Who accounts for VAT when a foreign engineer supervises works in Malta?
Where the reverse charge applies, the Maltese customer accounts for the VAT on its return and the foreign supplier's invoice shows no Maltese VAT.
What VAT rate applies?
The standard Maltese rate of 18% applies to most services of this kind, unless a specific reduced rate or exemption applies to the supply.
What must I write on an invoice with no Maltese VAT?
State clearly why, for example that the property is located in another country or that the reverse charge applies, and show the customer's VAT number where relevant.
Does 4invoices calculate the place of supply?
No. 4invoices does not determine the place of supply or the VAT treatment and does not verify tax IDs. You set the VAT rate on each line and can add a note. It supports any currency with an exchange rate and PDF download, free for 6 months without a card.