Wondering from where to start? What steps to take? What applications to submit?
- You need to register with Jobs+ (formerly known as ETC) as self-employed person;
- You need to register either as a full time or part time self-employee depending on your company’s size.
Registering with Jobs+ is easy, just a click on the following link jobs plus form to download, print and complete the form. Once this is done, you can scan and email the completed form to firstname.lastname@example.org or you may choose to send it to the address provided on same form. In case of difficulties, you can easily contact Jobs+ via https://jobsplus.gov.mt/contact
Self-employment trading activity has to be registered with the VAT Department, if this activity is not exempt under VAT regulations.
Value added tax (VAT) is a form of sales tax and is charged at 18% with reduced rates for some products and services. Without going into detail about the subject, value-added tax can be easily defined as the levy that accumulates on goods as they move from one stage of production to another. At each stage its value is increased. This VAT money is then passed on by the business man to the Inland Revenue Department.
You are required to register for VAT Malta under Article 10. If your annual turnover does not exceed the established threshold (to date less than €20,000 in sales) then you are considered as a VAT exempt person and you may opt to register under Article 11 as an exempt person. More information below.
To register, follow the link Vat registration form. A copy of the id card is required, to be presented at the time of registration.
If you are a person performing a business activity and turnover sales are below the established entry threshold of €20,000, then you are eligible to register under Article 11 of the VAT Act, to be exempted from charging VAT when you supply taxable goods or taxable services.
If you are registered under Article 11, you will not be able to claim deduction of any input VAT that you incur in your economic activity. In other words, you will not be able to claim any deduction for VAT incurred in the hands of the trader. You will also have an identification number without an MT prefix. Once you are registered under Article 11, you can remain registered as such as long as your turnover does not exceed the “entry” threshold of €20,000.
Furthermore, if you are registered under Article 11, you will need to issue fiscal receipts or tax invoices on all supplies made by you and submit a declaration form at the end of each calendar year, by the 15th of March of the following year.
If you opt to register under Article 10, you will have to charge VAT on your supplies of taxable goods or taxable services and you may also claim a deduction of the VAT incurred in the hands of the trader. You will have a VAT identification number which has an MT prefix.
However, if you are registered under Article 10, you cannot opt out of this registration and register under Article 11 during the first 36 full calendar months from the date of that registration. Furthermore, you cannot opt out if your annual turnover exceeds the “exit” threshold of €17,000.
If you are registered under Article 10, you will need to issue fiscal receipts or tax invoices on all supplies made and submit VAT returns for three months period as guided by the VAT Department, and not later than 6 weeks after the tax period expires or as the Commissioner directs.
Remember to keep all of your receipts and invoices incurred in the line of business for at least 10 years. Proper records need to be kept at all times available should the department requests such documentations.
Once Vat form is complete you will receive the VAT certificate which includes the VAT number at your registered address within a few days. You can then order the VAT receipts book online through the following link order vat books and opt to either receive the books at your desired address or to be picked up from Maltapost in Marsa.
At times employers have no need to hire workers. However, the majority establishing a new business need workers to perform some of the jobs involved. In this case, you must register with the tax authorities and obtain a PE number (Permission to Employ). Click on the following link to apply for PE number. A declaration form needs to be printed, signed and attached to the PE number. By this form the employer is bound to declare true, complete and correct information.
Once this form is submitted a PE number is assigned to you, usually within three working days. The PE number needs to be quoted when paying taxes and social security contributions. Therefore, best to keep this number at hand.
The next step to applying for an employer number is to register the employees with Jobs+. You need to record the commencement of each employee’s employment within business by completing an engagement form.
Remember that under Maltese law, every employee must have a contract of employment stating conditions such as wages, benefits, overtime rates, hours of work, working conditions, bonuses, leave and more to which an employee is entitled.