Value Added Tax
Malta has a Value Added Tax charge of 18% on all goods and services supplied in Malta and on all taxable importations. The VAT rate for accommodation in hotels and licensed premises and the supply of alternative energy equipment stands at 7%.
Certain supplies are exempted [e.g. good and medicine]. On the majority of goods and services supplied a VAT refund is given to the person / company acquiring the service of good – depending on the types of supplies carried out by that person / company.
Foreign film productions shooting in Malta can also claim refunds in the following cases:
• Input VAT incurred on property rental or hotel accommodation [bed & breakfast, half board or full board] with respect to all those persons, foreign or otherwise, directly engaged in the production of a foreign film, TV series, animation, commercial or documentary;
• Input VAT incurred on fuel may be claimed back when consumed by vehicles, commercial or otherwise, used directly in connection with the production of a foreign film, TV series, animation, commercial or documentary;
• Input VAT on the cost of taxis and car hire relative to the film production – excluding however VAT on purchase of non-commercial motor vehicles;
• Input VAT on the cost of materials used for the purpose of the film production which would not be otherwise recoverable.
VAT refunds are affected within 5 months from the later of the expiration of the time allowed for furnishing the VAT return for the particular VAT period or from the day on which the said return is made.