Malta reduces VAT registration threshold to nil in 2015

Mon 1st Dec 2014

The recently published Malta 2015 budget has cut the VAT registration threshold from €14,000 to nil.

The VAT registration threshold is the amount above which an ‘entrepreneur’ must register with the VAT authorities for, and then charge and collect VAT. It is based on any taxable turnover – supplies of goods or services subject to Value Added Tax.

The EU VAT Directive sets a target threshold of around €5,000 per annum, although countries such as the UK have a derogation – the UK threshold is currently £81,000 per annum. Many EU member states have been raising their thresholds in an attempt to alleviate the administrative burden on small start-ups. Belgium increased its VAT registration threshold to €25,000.

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