Malta issues new guidance on Fiscal receipts for VAT-exempt SMEs

Malta’s Commissioner for Tax and Customs has published updated rules requiring small and medium enterprises (SMEs) registered under Article 11 of the VAT Act to configure their fiscal cash registers to issue compliant receipts.

The new guidance, released on 13 July 2026 under Article 75(2) of the VAT Act, replaces all previous instructions and introduces standardized receipt identifiers.

The update refers to:

•  VAT-exempt status: Article 11 SMEs do not charge VAT on sales and cannot recover input VAT on purchases.
• Receipt requirement: Despite exemption, all supplies of goods and services in Malta must be accompanied by a fiscal receipt, covering both B2B and B2C transactions.
• Exemptions: The only exception applies to supplies exempt without credit under Part Two of the Fifth Schedule (excluding sub-item 16(1)).
• Receipt format: Receipts must show the label “E” or “Exempt” to indicate no tax is applied. The identifier “EXP” must also appear before the business’s VAT registration number.

The Commissioner stated that these measures ensure transparency and compliance with the VAT Act, while providing a standardized method for exempt businesses to record sales.

This update is expected to simplify operations for SMEs and strengthen Malta’s fiscal reporting framework.