The Malta Tax and Customs Administration (MTCA) released Explanatory Notes for the purpose of article 3(2)(c) of Cap. 512 of the Laws of Malta.

In February 2020, the Council of the European Union (EU) adopted Council Directive (EU) 2020/285 amending Directive 2006/112/EC (EU VAT Directive) on the common system of value added tax (VAT). These amendments to the EU VAT Directive apply to qualifying small and medium enterprises (SMEs) with effect from 1st January 2025 and are being introduced to reduce the complexities, compliance costs and administrative burden faced by SMEs as well as to facilitate cross-border trade for SMEs.

The main changes brought about by the amending Act and the regulations are Article 6 of the amending Act amending article 11 of the VAT Act, Article 7 of the amending Act introducing articles 11A and 11B to the VAT Act, Value Added Tax Act (Amendment of Sixth Schedule) Regulations, 2024, and Article 11.