COVID-19 accelerated remote working, leading businesses to transition from handwritten receipts on Government-issued VAT books to E-Invoicing. Many clients have shifted to Vifto, an emerging accounting system that facilitates collaboration among team members.
An e-invoice is generated from accounting software. While common in other countries, this approach is relatively new to Malta. The EU promotes e-invoicing as standard, with plans to phase out handwritten invoices.
Three main advantages of e-invoicing
- Environmental benefit (reduced paper waste)
- Added accountability (reduces VAT evasion)
- Easier electronic tracking for customers
E-Invoice Requirements
E-invoices must still meet minimum criteria under the twelfth schedule of the VAT Act. Basic required information includes:
- Name of tax person issuing the invoice
- Business address
- Business VAT number
- Invoice number
- Date
- Description of goods or services
- VAT rates
- Total amount
Additional specific information is required for businesses applying Reverse Charge mechanism or Margin Scheme.
EXO Number Requirement
For B2C transactions (issuing e-invoices to non-VAT-registered customers), businesses must obtain an EXO number and include it in e-invoices.
An EXO number requires a warranted auditor to audit the accounting system or Electronic Point of Sale to verify it meets established legal criteria. Once approved, an application is submitted to the VAT department with a certificate of conformity from the accounting software provider.
Borg Galea & Associates assists businesses in obtaining the required EXO number to begin electronic invoicing.
