VAT Refunds – Malta
Categories of expenditure that don't allow for VAT refunds
Some categories of expenditure don't allow for VAT refunds; in Malta these categories are:
- the supply, intra-community acquisition or importation of:
- tobacco or tobacco products;
- alcoholic beverages;
- works of art, collectors' items and antiques;
- motor vehicles, vessels or aircraft (including the supply for hire or leasing arrangements), including the goods and services for the purpose of repairing, maintaining, fuelling and the keeping of these vehicles;
- the supply of goods and services, or the intra-community acquisition or importation of any goods used for/by:
- receptions, entertainment or hospitality except when part of the normal course of that person's economic activity;
- a person/business to its officers or employees, for transport or entertainment (as long as it does not apply to transport provided by that person to his employees on vehicles with a seating capacity of not less than seven).
VAT refunds can be requested for the following exceptions to the above listed provisions:
- The supply/import/intra-community aquisitions by a person of:
- motor vehicles/vessels/aircraft used by that person for the transport of goods and passengers
- vessels and aircraft provided by that person under a charter or hire agreement
- motor vehicles used by that person for the purpose of hire (with a driver) or self-drive hire (excluding fuelling), or used for driving instruction, provided they are used in the normal course of that person's economic activity
- goods for resale, as long as they are sold in the normal course of that person's economic activity; whether in their acquired/imported state, or after treatment/processing or as part of other goods supplied by that person;
- motor vehicles designed and manufactured for the transportation of goods, that have a seating layout adjacent to the driver or for nine persons or more;
- vessels or aircraft used to transport goods or personnel in the course of an economic activity, or where the use of such vessels or aircraft constitutes a specific and essential element for the performance of the economic activity.
You can read about this in more detail on the national portal.
In Malta, the authorities can grant refunds to non-EU based businesses even if the authorities in the non-EU country don't offer similar refund arrangements as those for businesses based in Malta.