VAT refunds through Directive 2008/9/EC

In terms of the Directive 2008/9/EC, a taxable person established in Malta can claim a refund of EU VAT suffered in another Member State under the 8th Directive refund system.

Such application has to be submitted electronically through the Maltese Tax Administration portal within 9 months from the end of the calendar year to which the refund period relates. Thus, the application for such EU VAT refund incurred in 2022 shall be submitted by the 30th September 2023. In this respect, the VAT amount may not be less than €50.

To qualify for a refund under this Directive, a person established in Malta must have been during the same claim period:

1) validly VAT registered herein and

2) has carried out an economic activity giving rise to a right of deduction in Malta.

Furthermore, during the refund period, the taxable person must NOT:

1) have in the MS of refund, the seat of his economic activity, or a fixed establishment from which business transactions were effected or, if no such seat or fixed establishment existed, his domicile or normal place of residence;

2) have supplied goods or services in the country where they incurred the VAT but with the following exceptions to the rule:

• exempted transport & ancillary services or

• supplies of goods and services to persons liable for payment of the related VAT under the reverse-charge mechanism.

Taxable persons established in Malta that carry out both transactions that give rise to a right of deduction and transactions that do not give rise to a right of deduction in Malta, may only apply for a refund of such proportion of the VAT attributable to the former transactions.

If you require further guidance or details in relation to this process, please do not hesitate to contact us so that we may assist you.

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