A Malta company can be used for the re-invoicing of goods from any country to any destination, serving as either a procurement company or else a distributing company to a group of companies.
There are VAT and tax considerations to evaluate before implementing the right set-up. Many Malta registered companies operate in the triangulation of goods in EU trading, where goods are purchased from other EU suppliers and re-sell them to other EU businesses.
Goods may be shipped directly from supplier to eventual customer while profits are captured in the Malta company. In this way, profits made by the Malta Company, shall upon a distribution of dividends, entitle the shareholders to a tax credit, with the ultimate tax leakage on active trading income being of just 5%. Malta provides many advantages over and above offshore companies, mainly due to the fact that it is an onshore jurisdiction while imposing no withholding taxes to outbound payments. Moreover, the company will have an EU VAT registration which will simplify VAT reporting in such cases due to the triangulation simplification procedures.
A Malta company can alternatively be used as a procurement company, whereby goods from emerging economies or from China and the Asian markets are imported into the EU through Malta.
The goods can be acquired by a Malta procurement company from various international suppliers. The goods are then shipped from Malta to other EU countries. Profits captured in the Maltese company are also subject to 35% tax but upon distribution of profits to its shareholders, the effective tax rate can go down to 5%. Furthermore, onward supply relief may be available at Malta Customs in order not to pay importation VAT provided documentation is in place and the necessary reporting is done correctly.