Table of Contents
Overview
When importing goods into Malta from a non-EU supplier, the supplier's invoice won't show VAT. However, VAT must still be paid when the goods enter Malta. This is when you need to post a VAT transaction to account for the tax on the imported goods.
How you record the VAT depends on who handles the import and how the VAT is paid. VAT can be recorded using either:
a VAT Journal, or
a Purchase Invoice, followed by a payment.
Common Scenarios
Scenario | Document Issued | Who Pays? | Accounting Entry Type |
You pick up goods from Customs yourself | Single Administrative Document (SAD) from Customs | You pay VAT directly to Customs when collecting the goods | VAT Journal |
You're a direct importer | SAD from Customs | You pay VAT through the Customs Electronic System (CES) | Purchase Invoice + |
A freight forwarder manages the import | Purchase Invoice from the forwarder | The forwarder pays VAT on your behalf | Purchase Invoice + |
Common Practice
Many businesses create a dummy supplier called 'Malta Customs' and use it to:
Record purchase invoices issued by Customs (for which you attach the SAD).
Record payments made on the Customs website (for which you attach the receipt).
This method is used for internal control or reporting convenience. It’s not a legal requirement.
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