VAT refund in Malta: A complete guide to tax-free shopping in Malta for tourists

Planning a trip to Malta? This beautiful Mediterranean island will surely be a good escape from the rainy UK with its sub-tropical, mild, and pleasant dry year-round climate. From the stunning Blue Lagoon to the historic city of Valletta, there are more than enough fun things for you to do in Malta!

Whether you are in Malta for a short trip or a more extended stay, your holiday will incur various expenses. Malta is cheaper than the UK, but did you know you also need to pay up to 18% for VAT? Fortunately, you can easily offset your holiday expenses with a VAT refund before departing from Malta. VAT returns in Malta might be the easiest way to reclaim cash from all the shopping sprees. This article will detail everything you need to know about the VAT refund scheme in Malta, including answers to key questions like: how much is VAT in Malta?

We’ll even show you another way to save even more for your trip to Malta: consider settling your expenses in EUR with a Wise debit card.

So, let’s get started.

How much is VAT in Malta?

Malta's VAT system is built around four primary rates: 18%, 7%, 5%, and 0%.

You will see the standard rate quite frequently, as this 18% rate is applied to most goods and services. Alternative tax rates do exist. Certain goods and services are also subject to a reduced tax rate of 7%, 5%, or 0%.

You can take a quick check on the rate in the following table¹:

How much VAT is refunded in Malta?

The standard VAT rate is 18% of the purchase price, but you won't receive the whole amount back. You will need to pay administrative and foreign exchange fees if you want to receive your money in EUR. The actual amount of the VAT refund in Malta may vary based on individual circumstances and the specific refund process used. In many cases, you will usually receive only a portion of your vat returns in Malta.

Who is eligible for tax free shopping in Malta?

If you want to get a VAT refund in Malta, you must meet these conditions²:

• You must have physical persons whose permanent address or habitual residence is situated outside the EU;
• You will take the unused products with you in your personal luggage within three months after the end of the month in which you made the purchase. For example, if you buy a phone on 15 February, you must apply for a refund and bring this phone out of the EU no later than 31 May; and
• Your purchase must be at least 50 EUR and made in one receipt from a single store.

There are additional restrictions to consider even if you meet all of the above requirements. Due to their nature, some specific goods are not reimbursable. You cannot claim a VAT refund in Malta for²:

• Goods wholly or partly consumed in Malta; and
• Goods exported for business purposes;

How to get VAT refund in Malta?

The process is rather simple with a few steps to reclaim VAT in Malta.

Collect receipts and a tax exemption application form

When you're out shopping, whether it's at a local market or a high-end mall, confidently request the Application for Refund of VAT on Purchases made in Malta form from the sales assistant and ensure that you collect all of your receipts and invoices.

Don't stress if you forget to grab the tax-free application form. You can still pick it up at the Customs Exit Point. Just remember to keep the original receipts of your purchases because you'll need them to claim your VAT return in Malta at the airport. Also, the salesperson might want to see your passport, so it's a good idea to bring it along when you go shopping.

It's important to note that not every store is in the tax-free shopping scheme, so look for the tax-free sign or confirm with the cashier to avoid any surprises.

Have the forms verified

If you are travelling directly from Malta to the UK without transiting through another EU country, don’t forget to validate your VAT returns form in Malta.

When you arrive at the airport, look for the nearest Malta Customs Exit Point. Customs might request you to show the tax-free form, passport, and your purchased goods during your VAT returns validation. Make sure to place them where you can easily take them. If everything checks out, the Customs at Malta Airport will sign the VAT refund form. They'll give you an envelope which you can drop in the nearby mailbox.

Obtain a VAT returns in Malta

The VAT returns in Malta will be made by draft. When filling out the VAT returns in Malta, you can choose the currency you want to receive your return in. You have the option to receive it in USD, GBP, or AUD. The draft will be payable at the address you provide in the form.

Now you have this handy guide that can navigate you through the entire VAT refund process in Malta. Considering that Malta is one of the best budget destinations in Europe, it is no surprise this Mediterranean island is a dream destination for many UK travellers. If you want to get even more EUR from every GBP, it's always a neat idea to use Wise!

When your card's main currency (e.g., GBP) differs from Malta's local currency (e.g., EUR), it will be automatically converted every time you swipe your card. Your bank will set the conversion rate, typically with a hidden and cost markup.

Looking for one way to offset these fees? You can use your Wise card in Malta to enjoy auto-conversion on all your holiday spending at the mid-market rate for a small and transparent fee. You can also use your Wise card to easily withdraw cash from the ATMs in Malta. With this card, you can enjoy 2 withdrawals of up to 200 GBP for free every month. After that, a small fee of 0.5 GBP is added to each withdrawal and a 1.75% fee on any amount you withdraw above 200 GBP.

So pack your bags, remember to bring your sunscreen, and order your Wise card for a one-time fee of 7 GBP today! Get ready for an affordable adventure in Malta!

Get your card now

Please also be aware that tax rates and regulations may change over time. Always verify the information with official sources for the most accurate and up-to-date guidance.

Sources used for this article:

Sources last checked on 27-Aug-2024.