Previously, a business or self-employed that is VAT registered under ‘Article 10’ (standard), had to wait for 36 months before shifting to an ‘Article 11’ registration (small undertaking). This can now be made after 24 calendar months, Furthermore, the revised Sixth Schedule of the VAT Act provides for the possibility to request a conversion of registration after 6 months, which may be permitted at the discretion of the Commissioner for Revenue.
Furthermore, we remind you that following the Budget Speech of last October, the sales thresholds are also changing as follows:
- Economic activities consisting principally in the supply of goods: €35,000 (no change)
- Other economic activities: €30,000 (entry threshold)/€24,000 (exit threshold).
The above is expected to leave more businesses with a choice between an exempt status under Article 11 or else registered under Article 10. Naturally, this may have an impact on the person’s ability to claim VAT on expenses. Get in touch with our VAT team on firstname.lastname@example.org and we would be glad to help in VAT registration, change in VAT registration, bookkeeping and VAT returns preparation and submissions. Please also note that VAT returns are no longer being settled in Maltapost or bank branches.