In Malta, the legal framework for receiving payments, issuing invoices, and providing receipts is governed by a combination of laws, primarily related to:
- VAT Act (Cap. 406)
- Income Tax Act (Cap. 123)
- Commercial Code (Cap. 13)
- Fiscal receipts regulations
- Self-employment registration (JobsPlus)
- EU Directive 2006/112/EC (transposed into Maltese VAT law)
Here is a breakdown of your legal obligations as a self-employed person or small business, especially relevant to photographers:
1. Invoicing Obligations in Malta
Who must issue invoices?
- All VAT-registered persons (under Article 10 or Article 12) must issue full VAT invoices.
- Self-employed professionals, even if not VAT-registered, should still issue invoices or receipts for transparency, accounting, and tax purposes.
When must you issue an invoice?
- Within 30 days of service delivery or the date payment is received (whichever comes first).
- For B2B transactions, a full tax invoice is mandatory.
- For B2C sales, a simplified invoice or receipt may suffice, especially if you’re not VAT-registered.
Invoices must include:
Mandatory fields (per [VAT Act, Article 218–226]):
- Unique sequential number
- Issue date
- Supplier name, address, and VAT number
- Client name, address, and VAT number (for B2B)
- Description of goods/services
- Quantity and unit price
- VAT rate and VAT amount
- Total payable
- “VAT Exempt under Article 11” (if applicable)
2. Receipts: Legal Obligation
- You must issue a fiscal receipt or equivalent any time a service is paid for, especially in:
- Cash transactions
- Consumer-facing sales (B2C)
- Receipts are compulsory if:
- The buyer requests one
- The payment is received immediately (vs invoiced later)
- A stamped “PAID” invoice can serve as a receipt in professional services.
If you use a point-of-sale system, it must be registered with CfR and capable of issuing fiscal receipts.
3. Receiving Payments
You are legally allowed to accept:
- Bank transfers
- Cash (up to legal limits)
- Credit/debit cards
- Digital payments (e.g. Revolut, PayPal, Stripe)
Legal Limits on Cash:
As of 2021:
- Cash payments for business transactions cannot exceed €10,000
- Over this threshold, you must receive payment through traceable methods (bank or digital)
Tip: Use bank transfers or electronic payments to ensure clean audit trails and easier VAT/tax accounting.
4. Self-Employed Registration & Reporting
You must:
- Register as self-employed with JobsPlus
- Register for a VAT number (if applicable)
- File:
- Income Tax Return (annually)
- Provisional Tax (PT) (3x per year if expected profits > €11,600)
- VAT returns (quarterly or annually, depending on registration)
- National Insurance Contributions (Class 2)
5. Legal Penalties for Non-Compliance
Failing to issue proper invoices/receipts or receive payments legally can result in:
- Administrative penalties by the Commissioner for Revenue
- Fines (e.g. €20–€100 per missing invoice, up to €5,000 for serious breaches)
- VAT audits and reassessments
- Disqualification from grants or funding schemes
| Activity | Tools/Resources |
|---|---|
| Track income/expenses | Xero, QuickBooks, Wave, Invoice Ninja |
| Register & submit VAT returns | CfR VAT Portal, MIA, or hire accountant |
| File income tax (self-employed) | CfR portal or with licensed accountant (via MIA) |
| Stay informed | MIA newsletters, MEIA, Business1st, CfR Tax Calendar |
| Seek funding | Malta Enterprise, Arts Council Malta, MCVS |
| Legal business setup | Business1st, JobsPlus, Notary services, Registrar of Companies (via MFSA) |