Proposed reform

Guidance on the VAT food exemption

Guidelines will clarify VAT on ready-to-eat food sold by supermarkets and convenience shops.

Budget 2027Rules pending

Amount

Not specified

No direct comparator

Effective from

Awaiting guidance

What it means

Guidance is intended to improve certainty and consistent treatment across competing operators. This is guidance development, not an announced change to the exemption itself.

Affects: Companies & SMEs.

Who qualifies and what is excluded

Exception: No exemption expansion or narrowing is stated; this is clarification guidance.

Sources

Diskors tal-Budget 2027, Ministry for Finance (Malta), 2026-10-26. Printed p. 45 (PDF p. 49)

Related measures

Budget 2027Rules pendingProposed reform

Small company 25% tax on retained profit

A 25% tax rate on retained or reinvested profit is announced for qualifying companies with turnover not above €1 million, compared with 35% on distributed profit.

25% on retained profit

Proposed rules; implementation not confirmed.

Speech printed p. 34 · PDF p. 38

Budget 2027Rules pendingProposed reform

Taxation of air space transfers

New rules require fuller disclosure of the total price in development deals involving the sale of air space.

Proposed rules; implementation not confirmed.

Speech printed p. 42 · PDF p. 46

Budget 2027Rules pendingProposed reform

VAT reverse charge in construction

For covered construction transactions the buying business, not the supplier, accounts for VAT.

Proposed rules; implementation not confirmed.

Speech printed p. 43 · PDF p. 47