How is VAT calculated in Malta in 2026?
Value Added Tax (VAT) in Malta is an indirect tax on the consumption of goods and services, collected by VAT-registered businesses and paid over to the Malta Tax and Customs Administration (MTCA), formerly the Commissioner for Revenue (CFR). VAT is governed by the Value Added Tax Act (Chapter 406 of the Laws of Malta). For 2026 the standard rate is 18% and applies to most goods and services. An intermediate rate of 12% has applied since 1 January 2024 to specific supplies such as the custody and management of securities, the management of credit, the hire of pleasure boats for short periods, and certain services by regulated health-care professionals. A 7% reduced rate covers licensed tourist accommodation and admission to sports and fitness facilities, while a 5% reduced rate applies to domestic electricity, printed and digital books, medical accessories for the disabled, minor repairs and admission to cultural events. A 0% zero rate covers basic food, prescription medicines, intra-EU supplies, exports and international passenger transport. This calculator works in two directions. "Add VAT" starts from a net base: VAT = base × rate, and the total = base × (1 + rate). "Extract VAT" works backwards from a gross total that already includes VAT: net = total ÷ (1 + rate), and VAT = total − net. Worked example at the 18% standard rate on a net amount of €100: VAT = 100 × 0.18 = €18.00 and the gross total = 100 × 1.18 = €118.00. Reversing it, extracting VAT from a gross total of €118: net = 118 ÷ 1.18 = €100.00 and VAT = 118 − 100 = €18.00. As a cross-check at the 12% intermediate rate, extracting from a gross of €112 gives a net of 112 ÷ 1.12 = €100.00 and VAT of €12.00. Results are displayed rounded to two decimals while the internal calculation keeps full precision.
Official source: MTCA / CFR Malta · Data updated: 2026-06-02