VAT on books
VAT on books in Malta
Malta is one of the few EU countries whose VAT law names audiobooks outright. Printed books, ebooks and audiobooks, on a CD or downloaded, all pay 5%. Digital editions joined print on 1 January 2019. The standard rate is 18%.
This is general information, not tax advice. Rates and rules change, and your own situation matters. Check with Malta Tax and Customs Administration (MTCA) or an accountant before you decide.
The rates
| What you sell | Rate | Type | Source |
|---|---|---|---|
| Printed books | 5% | Reduced rate | VAT Act, Cap. 406, Eighth Schedule, item 5 |
| EbooksSince 1 January 2019. | 5% | Reduced rate | L.N. 434 of 2018 |
| AudiobooksOn CD, DVD, SD card or USB, or supplied electronically. | 5% | Reduced rate | VAT Act, Cap. 406, Eighth Schedule, item 5 |
| Most other goods and services | 18% | Standard rate | VAT Act, Cap. 406, article 19 |
What to know about Malta
- Legal Notice 434 of 2018 extended the 5% rate to audiobooks and books supplied electronically, in force from 1 January 2019. L.N. 434 of 2018
- The Maltese law says audio books by name, both on physical media and supplied electronically. That makes Malta one of the clearest countries for audiobook sellers. VAT Act, Cap. 406
- Publications that are wholly or mainly advertising, video or music do not get 5%. VAT Act, Cap. 406
How EU VAT works when a reader in Malta buys from you
Ebooks and audiobooks: the reader’s country
A download sold to a reader, not a business, is taxed where the reader lives. So a reader in Malta pays the rate for Malta, wherever you are. European Commission, place of taxation.
The €10,000 threshold
If your business is based in just one EU country, and your sales to readers in other EU countries stay at or under €10,000 a year (this year and last), you can charge your own country’s VAT instead. Digital sales and shipped print books count together. Sellers based outside the EU get no threshold for digital sales: VAT is due from the first sale. Commission OSS guide.
The One-Stop Shop (OSS)
Instead of registering in every country, you register once and file one return every quarter that covers all your EU sales. Your home tax office passes the VAT on to each country. EU-based sellers use the Union scheme. Sellers outside the EU use the non-Union scheme for ebooks and audiobooks. EU One-Stop Shop. OSS in plain words.
Paperbacks and hardcovers sent across a border
A printed book shipped from one EU country to a reader in another is a distance sale. It falls under the same €10,000 threshold. Over it, the rate is the one where the parcel ends up, here the rate for printed books in Malta, and it goes on the same OSS return. Commission OSS guide.
Who charges the VAT when you sell on Lanternbee
You do. Each author connects their own Stripe account, so you are the seller and the money goes straight to you. At checkout, Stripe Tax works out the right rate for where the reader is and adds it to the order. It collects tax in the places where you have added a tax registration in Stripe, so you still register where you need to, file the returns and pay what you collected. Stripe on tax registrations.
We plan to take EU VAT on ebooks off your hands by acting as the merchant of record for digital editions. That is planned, not live. Today, you are the seller.
Questions authors ask about Malta
What VAT do Maltese readers pay on ebooks?
5%, the same as printed books, since 1 January 2019.
Are audiobooks at 5% in Malta?
Yes. Malta's VAT Act names audio books at 5%, on physical media or supplied electronically.
Does Malta have other reduced rates?
Yes, Malta also has a 7% rate, used for things like accommodation. Books are in the 5% band.