VAT for beginners: when it applies to you
Jana Horáková
VAT sounds intimidating, but for most freelancers it comes down to a handful of rules. Let's walk through when value-added tax applies to you in Malta and what Olvano does with it.
When you become a VAT payer
You must register for VAT once your annual turnover is likely to cross the statutory entry threshold. You can also register voluntarily — worth it when most of your clients are VAT-registered too, since they can reclaim it.
Maltese VAT rates
| Rate | Applies to |
|---|---|
| 18% | standard rate — most goods and services |
| 12% | reduced rate — e.g. certain professional and hire services |
| 7% | reduced rate — e.g. tourist accommodation and use of sporting facilities |
| 5% | reduced rate — e.g. electricity, books, newspapers, and medical accessories |
| 0% / exempt | specific cases, exports, and intra-EU supplies |
How Olvano handles VAT
Olvano does the math for you. Choose a rate per line item and the app derives the base, the VAT amount, and the total — always rounded by the rules. All amounts are kept in euro (EUR).
- Invoices automatically include your VAT number (MT) and a full VAT breakdown.
- For EU B2B supplies we support reverse charge.
- Selling to consumers elsewhere in the EU? Switch on OSS and the correct rate is applied per country.
- Export ready-made figures for your VAT return and your recapitulative statement in one click.
Not sure yet?
If you're not registered for VAT, simply invoice without it and let Olvano watch your turnover. We'll warn you as you approach the threshold so registration never catches you off guard.