Can I be personally liable for unpaid VAT of my Malta business?
- 20.08.2026
I’m behind on paying a tax bill in Malta due to some genuine cash flow difficulties in my business, and I’m concerned about what consequences I might actually face for this late payment, and whether there’s anything I can do to address the situation proactively rather than just waiting for enforcement action.
Late payment of tax in Malta generally results in interest accruing on the outstanding amount under the Income Tax Act, Chapter 123 of the Laws of Malta, and continued non-payment can eventually lead to more serious enforcement action by the Commissioner for Revenue, potentially including legal proceedings to recover the debt, meaning the consequences genuinely escalate the longer an outstanding balance remains unaddressed, rather than simply accumulating interest indefinitely without further action. Given your genuine cash flow difficulties, it would be considerably better to proactively contact the Commissioner for Revenue rather than simply waiting for enforcement action to be taken against you, since tax authorities in Malta do generally have established processes for taxpayers experiencing genuine financial difficulty to potentially arrange a structured payment plan, allowing you to settle the outstanding amount over time rather than facing the full range of possible enforcement consequences for continued non-payment. Given the potential seriousness of unresolved tax debt and the genuine value in properly and proactively addressing this situation rather than letting it escalate, it would be worth engaging an accountant or tax advisor promptly to help you properly assess your position, calculate exactly what you owe including any accrued interest, and approach the Commissioner for Revenue about arranging a reasonable payment plan given your specific circumstances.
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