2 December 2014

In the 2015 Maltese budget it was announced that the rate of VAT on digital and audio books will be reduced from 18% to 5% from the 1 January 2015. This will include books on media such as CDs, DVDs, SD cards, and USB drives.

The VAT registration threshold of €7,000 per annum is being abolished, although returns will not be required for smaller businesses. This will mean, however, that all taxable persons carrying on an economic activity will have to register for VAT purposes regardless of their annual turnover. They will also have to issue VAT invoices.