18% VAT for renting....

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Member since 21 August 2017

anamoominsMember26 December 2018 10:45:34

Hi,

can someone please explain the 18% VAT that needs to be paid when renting a place in Malta.
Is that VAT compulsory, or how is it calculated? What is it 18% of...?

Many thanks,
A

Kostya_k New member

Member since 14 October 2018

Kostya_kNew member26 December 2018 13:54:49

VAT is being paid by a Land Lord not by a tenant. If your LL tries to put VAT on you (the renter) then don't do any business with him/her.

MarcelMarcelMarcel Member

Member since 17 January 2018

MarcelMarcelMarcelMember26 December 2018 14:05:12

Actually it isn't. VAT is always paid by a customer and then the seller pays it to the tax office. It is a value added tax. BUT for long let it is only to be paid if you rent from a company wich is not a VAT exempt. If you long rent from a private person then usualy you don't have to pay VAT. The owner has to pay income tax of 15% of the rent to the tax office, but that's not VAT. For short let you normaly need to pay 7% VAT, which the receiver have to pay to the taxoffice.

F0xgl0ve Malta Expert

Member since 11 November 2013

F0xgl0veMalta Expert27 December 2018 06:49:23

1974

When renting a long let property there is no VAT on your rental payments.
You do however have to pay VAT on your part of the Agents commission at the standard rate of 18%

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