Article

E-Invoicing in Malta

12 April 2023

Ensuring Compliance

In this post, Unimaze takes you through everything you need to know about e-Invoicing in Malta.

We’ll cover compliance requirements, Malta’s e-invoicing model, e-invoice standards, infrastructure, and network.

We’ll also learn how you can leverage Unimaze's wide range of e-invoicing and AP automation solution to digitalize how you purchase, pay, and get paid.

A Quick Overview of e-Invoicing in Malta

E-Invoicing/CTC Model

Post Audit and Peppol

Mandatory Infrastructure

  • B2G: Peppol
  • B2B: Not Applicable

Mandatory e-Invoice Format

  • B2G: EN compatible, Peppol BIS
  • B2B: Not Applicable

Issuing Mandate

No explicit requirements

Receiving Mandate

  • B2G: All contracting authorities
  • B2B: Buyer’s consent is required

Digital Signature

Not Required

Archiving Abroad

Allowed under specific conditions

Archiving Period

6 Years

E-Invoicing in Malta

The Timeline

Malta's journey toward e-invoicing started in 2021 upon the transposition of Directive 2014/55/EU. According to the directive, all central government contracting authorities and entities must set a system allowing them to send and receive e-invoices per the European Standard on e-Invoicing (EN-16931).

In 2021, The Maltese government made B2G e-invoicing mandatory, following the EU Directive and in accordance with the “Digital Malta 2014 to 2020”.

And while B2B and B2C e-invoicing in Malta isn’t mandatory, its use is regulated.

The Maltese legislation allows B2B and B2C electronic invoicing through and certified service provider.

Unimaze is a Peppol-certified Access Point provider, offering innovative e-invoicing solutions that meet Malta’s legal and regulatory requirements.

Legal Framework for e-invoicing in Malta

In Malta, the legal framework for e-invoicing is based on the EU VAT Directive 2006/112/EC and transposed into local legislation through Legal Notices 403 and 404 of 2018.

The government implements these legal notices under the Financial Administration and Audit Act and the Local Councils Act, which have separate financial regulations.

The eInvoicing Directive sets out the rules for creating, transmitting, and storing electronic invoices to ensure their authenticity and integrity for tax purposes.

In Malta, e-invoices must meet certain requirements to be considered valid, including authenticity and integrity, content, storage, and consent.

Some of the key requirements for e-invoices in Malta include:

  1. Authenticity and Integrity: The invoice must be authentic, and its content not altered in any way.

Entities can ensure the authenticity and integrity of the invoice through electronic signatures, electronic data interchange (EDI), or other similar means.

  1. Content: The invoice must contain all the information required under Maltese VAT law, including the supplier's name and address, the customer's name and address, the invoice date and number, a description of the goods or services provided, the amount charged, and the applicable VAT rate.
  2. Storage: E-invoices must be stored in a format that ensures their authenticity and integrity and must be available for inspection by the tax authorities upon request.

The storage period for e-invoices is six years from the end of the tax period to which the invoice relates.

  1. Consent: The supplier must obtain the customer's consent to receive invoices electronically and provide the customer with the option to receive paper invoices if requested.

The Maltese government promotes the adoption of eInvoicing through its Digital Malta national strategy, which encourages the implementation of eInvoicing by local actors.

Send Peppol-ready e-invoice and Malta with Unimaze.

What e-Invoicing Means for Businesses in Malta

In Malta, businesses adopting e-invoicing can benefit from the country's efforts to enhance its digital infrastructure and align itself with European Union (EU) regulations and standards.

Some unique aspects of e-invoicing for businesses in Malta include:

  • VAT compliance: E-invoicing can help enterprises in Malta comply with the Maltese Value Added Tax Act.

By streamlining the process and maintaining accurate electronic records, businesses can reduce the likelihood of errors and inconsistencies, making adhering to tax reporting requirements easier.

  • Malta Enterprise Schemes: Malta Enterprise, the national development agency responsible for promoting and facilitating international investment, offers various schemes and incentives to businesses in Malta.

Adopting e-invoicing can help companies become more competitive and potentially qualify for financial assistance or incentives through these schemes.

  • The Malta Communications Authority (MCA): The MCA plays a critical role in regulating and promoting Malta's digital economy.

The agency support businesses in implementing e-invoicing through various initiatives, such as awareness campaigns and workshops, which can help businesses adopt e-invoicing more effectively.

  • eProcurement Integration: Malta has been working on implementing the Electronic Public Procurement (ePP) system to streamline the public procurement process.

E-invoicing can be integrated with ePP, facilitating more efficient communication between suppliers and the Maltese government, which can benefit businesses that frequently work with public entities.

You can read about other benefits of adopting digital payments for business and why you should make the big switch.

Implementation of e-invoicing compliance in Malta

As stated, B2B and B2C e-invoicing in Malta isn’t mandatory but is regulated. Whether you’re a supplier to the government or a private business owner, switching to e-invoice comes with many benefits, as highlighted above.

Malta uses the Peppol BIS 3.0 e-invoice infrastructure. To adopt e-invoicing in Malta, therefore, you need to work with a Peppol-certified service provider. That way, you can be sure you’re issuing e-invoices in the correct mandatory infrastructure.

Choosing a Compliant e-invoicing Solution in Malta

When choosing a compliant e-invoicing provider in Malta, you want one that offers the following:

Compatibility With Regulations

Ensure the e-invoicing provider complies with local regulations, such as Maltese VAT laws, as well as EU e-invoicing standards like European Norm (EN) 16931.

Interoperability

Choose a solution that supports interoperability between different e-invoicing platforms and can easily exchange data with other systems like ERP and CRM.

Security and Data Protection

Evaluate the security measures offered by the service provider, including encryption, secure access controls, and data backup capabilities to protect sensitive financial information.

Scalability and Flexibility

A good e-invoicing service provider in Malta can accommodate your business's growth, catering to increasing volumes of transactions and adapting to changes in regulations or technological advancements.

Integration Capabilities

You're better off with a solution that can be easily integrated with your existing financial systems and software, allowing for seamless data exchange and process automation.

Unimaze is a Top e-Invoicing Service Provider in Malta

Besides being a Peppol-certified Access Point Provider, Unimaze offers several unique highlights making it a top e-invoicing service provider in Malta.

  • Expertise in the Maltese Market: We deeply understand the Maltese business environment and local regulatory landscape, allowing us to offer tailored solutions that cater to the specific needs of businesses operating in Malta.
  • Multi-format Support: Unimaze's e-invoicing solution supports various formats, such as XML, PDF, and EDI, ensuring compatibility with diverse business processes and systems. Our solutions are compatible with various ERP systems and integrate seamlessly with your current accounting software.
  • End-to-end e-invoicing Services: Unimaze provides a comprehensive range of e-invoicing services, including invoice creation, delivery, tracking, and archiving, making it a one-stop solution for businesses seeking to optimize their invoicing processes.
  • Onboarding and Training Support: Unimaze assists businesses in their transition to e-invoicing by providing comprehensive onboarding and training resources, ensuring a smooth implementation process, and enabling employees to become proficient in the new system quickly.
  • Analytics and Reporting Tools: Unimaze offers built-in analytics and reporting features that help businesses gain valuable insights into their invoicing processes, identify trends, and make data-driven decisions to improve financial management.
  • Cloud-based Infrastructure: Unimaze's cloud-based e-invoicing solution allows businesses to access and manage their invoicing data from anywhere, anytime, providing flexibility and reducing the need for on-premises hardware or infrastructure.

Ready to get started with Peppol e-invoicing in Malta?

E-Invoicing in Malta

FAQS - What is required on a Malta invoice?

In Malta, an invoice must include certain information in order to be considered valid for tax purposes. The required information on a Malta invoice includes the following:

  • Name, address, and VAT registration number of the supplier
  • Date of issuance of the invoice
  • Unique invoice number
  • Name and address of the recipient
  • Description of the goods or services provided
  • Quantity or volume of goods or services provided
  • Unit price and the total amount charged for the goods or services provided
  • The VAT rate applicable to the goods or services provided
  • Amount of VAT charged
  • Total amount payable, including VAT

Note: Invoices in Malta must be issued in Maltese or English and kept for 6 years for tax purposes.

Is VAT Exempt in Malta?

No, Malta is not VAT-exempt.

Value Added Tax (VAT) is a consumption tax charged on the supply of goods and services in Malta. The standard rate of VAT in Malta is 18%, and this is the rate that applies to most goods and services.

However, there are some goods and services that are subject to reduced rates of VAT, such as:

  • Accommodation services in hotels, guesthouses, and other similar establishments (7%)
  • Restaurant and catering services, including takeaway food (5%)
  • Certain medical and pharmaceutical products (5%)
  • Books, newspapers, and other printed matter (5%)

Additionally, some goods and services may be exempt from VAT in Malta, such as:

  • Education and training services
  • Healthcare services
  • Certain financial services
  • Certain insurance and reinsurance services
  • Postal services

Note

VAT rules and rates can change over time, so it's always a good idea to check with the Malta VAT authorities or a tax professional for the most up-to-date information.

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