The standard Value added tax (VAT) rate in Malta is 18%. This is the rate that applies to most goods and services in the country. However, there are also reduced VAT rates that apply to certain goods and services. Reduced Rates: reduced rate (7%), for example, accommodation in hotels, guest houses and self-service establishments, medical equipment, books and newspapers; an extra reduced rate (5%), applied to a limited number of essential goods, such as some medical equipment for the disabled and some types of books, including school textbooks; zero rate (0%), for example, the export of goods outside the European Union, certain transactions within the EU, as well as certain food and beverages. It is important to emphasize that VAT rates and rules may change due to updates to the tax system or changes in government policy. Before Malta company formation, you should familiarize yourself with the legal requirements and taxation of Malta.