As a full member of the European Union since the 1st May 2004, Malta
forms part of the EU VAT system.
companies registered for VAT in Malta are given an EU VAT number
which renders them able to trade within the European Union. As
a prerequisite for VAT registration in Malta, Malta companies must be
managed and controlled from Malta.
VAT does not have a major impact on VAT registered Malta companies because
most of the VAT they charge or pay will be 'neutral' under the reverse
charge mechanism and VAT paid by these companies for services and
supplies received can be set-off as output vat against their input VAT.