Malta – New 12% reduced VAT rate

With the Legal Notice 231/2023, the Maltese government has introduced a new reduced VAT rate of 12%, applicable from the 1st January 2024 on the following supply of services:

• Custody and management of securities
• Management of credit and credit guarantees by a person or body other than those who granted the credit
• Hiring of a pleasure boat to a person according to an agreement for any term or part of a term that, when added to the term of a previous hiring, of the same goods or of other goods of the same kind, to the said person during the previous twelve (12) months ending on the date of the beginning of the existing hiring, does not exceed five (5) weeks.
• Services consisting of the care of the human body required to be delivered by a person in the exercise of any profession regulated by the Health Care Professions Act (Cap.464), including services supplied in the course of a health studio business or similar business, but not including exempt supplies referred to in item 11 of Part Two of the Fifth Schedule.