HappyChef Daily · Today's restaurant news
Malta's Budget Hits Hotel Guests And Leaves Caterers' VAT Alone
- Ireland
- Malta
In Short
- The Maltese eco-contribution for hotel guests goes from €1.50 to €8 a night.
- Catering VAT stays at 18%; the government turned down the call for 7%.
- Wrong fiscal receipts now bring fines of €100 to €500 instead of criminal cases.
- Companies with turnover under €1 million will pay 25% instead of 35% on undistributed profits.
- Work permit fees for non-EU staff go up by €200.
Malta's finance minister presented Budget 2027 on 26 October. Several measures touch restaurants and hotels directly.
It was a quiet day for Irish trade news, so this edition looks at Malta.
Hotel Stays Get Dearer With A Bigger Visitor Charge
The eco-contribution for hotel guests rises from €1.50 to €8 per person per night, capped at €64 per stay. Short lets get a new €10 charge, capped at €80.
Cruise passengers who return to the same ship pay €10, and Comino visitors pay €5. The government expects about €182 million a year.
Sources: Newsbook, Lovin Malta
Caterers Do Not Get The Lower VAT Rate They Wanted
The VAT rate on catering stays at 18%. The finance minister rejected calls from the opposition and the caterers' association for 7%.
He said a cut would cost between €80 million and €143 million and would mostly help about 3,000 businesses. New guidance also clarifies VAT on ready-to-eat food sold in shops that compete with restaurants.
Sources: Newsbook
Receipt Mistakes Bring Fixed Fines Instead Of Court
Incorrect fiscal receipts will no longer lead to criminal prosecution. Instead there are fines of €100, €200, €400 and then €500 within 24 months.
Paying within 30 days ends the criminal liability. Mistakes also feed into the tax authority's risk checks, so audits may follow.
Sources: Newsbook
Employers Get A Tax Cut And Higher Permit Fees
Companies with turnover under €1 million will pay 25% instead of 35% on undistributed profits. The cost-of-living adjustment is €6.41 a week, and workers may get a tax-free bonus of up to €1,000.
Work permit fees for non-EU staff rise by €200 to €800, plus a €400 yearly infrastructure contribution. This matters for kitchens and floors that rely on foreign workers.
Sources: PwC Malta
What Does This Mean For Your Restaurant?
For a Maltese owner the biggest change is the guest eco-tax, which makes a stay dearer. The catering VAT stays where it was.
Check your receipt setup and your permit costs before the new rules start.
Sources
This edition summarises the articles below. Read them for the full details.