VAT is due in Malta on services furnished by a taxable person acting as such that are deemed provided in Malta. These include services provided as a result of a trade or business, profession, or the exploitation of tangible and intangible property, but does not include the services of employees or the holders of an office.

The general rule for the determination of the place of supply of services is the place where the supplier is established in case the customer is not a taxable person, and the place where the customer is established in case the customer is engaged in business. Various exceptions apply to this rule, including:

services connected with immovable property are deemed provided where the immovable property is situated;
transport services, supplies of cultural and artistic, sporting, scientific, education and similar services, ancillary transport services and valuations and work on moveable property are deemed provided where physically carried out;
supplies of restaurant services and catering services performed on board ships, aircraft or trains in Community transport are deemed provided at the point of departure; and
the short term hiring of means of transport, the supply of electronically delivered services and certain services to non-taxable persons established outside the Community are deemed to be supplied where the customer is established.

Exemptions (with credit) apply to services consisting of work on movable goods acquired or imported for the purpose of undergoing such work within Malta and subsequently transported outside the Community, services on goods placed under a customs duty suspension regime, international transport of goods and passengers and ancillary services, certain brokerage and intermediation services in connection with the export and the international transport of goods, vessels, aircraft, gold, food and pharmaceutical goods, services consisting in the modification, maintenance, chartering of vessels and aircraft mentioned, and services provided for the direct needs of such vessels and aircraft.

The Act also provides for exemptions without credit for various services, including the letting of immovable property, licensed insurance services, credit banking and related services, cultural and religious services, services related to certain exempt services, certain services provided by non-profit making organisations to their members, services connected to lotteries, gaming and gambling, postal services, health and welfare, education and broadcasting.

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