What is Article 11 Small Enterprise?
Article 11 is the VAT registration for small enterprises, with a unified domestic threshold of €35,000 annual turnover from 1 January 2025. There is no input VAT recovery and VAT periods follow the calendar year.
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Current Rate (Calendar-year VAT periods)
€35,000 annual turnover threshold
Example
A sole trader with €30,000 of annual turnover can register under Article 11. They charge no VAT but cannot recover VAT on purchases.
How Article 11 Small Enterprise works in Malta
Related-party turnover is aggregated when testing the threshold. Article 10 is the standard registration and the only one with input VAT recovery. Article 12 covers intra-EU acquisitions over €10,000 a year and reverse-charge services for people who are not Article 10 registered.
The EU cross-border SME scheme carries a €100,000 Union threshold.
Finn watches turnover against €35,000 and flags the move from Article 11 to Article 10.
Related terms
Maltese VAT has an 18% standard rate, reduced rates of 12%, 7% and 5%, and a 0% rate described as exempt with credit, which covers food for human consumption and pharmaceuticals.
Maltese corporate income tax is 35% on the worldwide income and capital gains of Maltese companies. Under the full imputation system, shareholders can reclaim part of it on distribution, so the effective rate is often far lower.
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