Malta’s government has introduced a new reduced VAT rate of 12% for certain services, including custodian services, management of credit and credit guarantees, short-term hiring of pleasure boats, and health care services that do not qualify for exemption. The reduced rate will come into effect on January 1, 2024, and is expected to ease the burden of VAT on these services, which currently incur the standard rate of 18%.

Through the adoption of L.N. 231 of 2023 pursuant to the option provided to Member States in this this respect pursuant to the adoption of Council Directive (EU) 2022/542 of April 2022 amending Directives 2006/112/EC and (EU) 2020/285.