5% VAT on protective face masks and visors

5% VAT on protective face masks and visors

With effect from 4 May 2020, Legal Notice 187 has reduced the VAT rate on protective face masks and visors to 5% from the standard rate of 18%.


Legal Notice 186, published on 8 May 2020, has reduced the VAT rate on protective face masks and visors to 5% from the standard rate of 18%. Such has been made through an addition to the list of ‘Medical Accessories’ in the Eighth Schedule to the Value Added Tax Act that are already subject to the reduced 5% VAT rate. The addition has been made by a description of the items rather than by their CN (Commodity Nomenclature) code and excludes diving equipment. The LN is effective retrospectively from 4 May 2020.

The publication of the LN follows the Price Order published on 4 May setting the maximum retail price of a surgical/medical mask at €0.95 per mask and that of a face shield at €5.00 per face shield.

A ‘COVID-19 Mask Subsidy Scheme’ has also been launched to aid pharmacies in alleviating wholesale cost-induced losses borne by the introduction of the price cap whilst securing the wider public interest. The refund is reflective of the difference between the purchased wholesale price (inclusive of VAT) and the €0.95 capping, not exceeding €0.70 per mask and relates to stocks bought over the period 17 April to 4 May 2020. The scheme is administered by MIMCOL. Eligible parties will need to apply for the refund directly through MIMCOL’s portal. All the relevant guidelines and application form are accessible.

Should you have any queries or wish to discuss further, please send an email to covid@kpmg.com.mt.

5% VAT on protective face masks and visors

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

© 2022 KPMG, a Maltese civil partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

Connect with us


Want to do business with KPMG?


loading image Request for proposal

Save, Curate and Share

Save what resonates, curate a library of information, and share content with your network of contacts.

Sign up today