Book-keeping and preparation of accurate accounts showing the financial performance and financial position are key to maintaining a company in good standing.

Maltese companies are required to prepare file audited financial statements on an annual basis with the Malta Business registry.

Self-employed individuals are likewise obliged to prepare accounts for personal income tax purposes.

Our bookkeeping, accounting and financial reporting services enables clients to maintain their companies in perfect standing with the regulatory authorities.

Our services include:

• Safe keeping of accounting records
• Professional booking of transactions and keeping proper books of accounts in accordance with the Maltese legislation and international standards
• Preparation of invoices drawn up in accordance with Maltese VAT law
• Bank reconciliations and recording of bank transactions
• Finalisation and year-end adjustments
• Drafting of management accounts and other financial reports
• Drafting of financial statements
• Preparation of profit and loss statements for self-employed individuals
• Advisory services on statutory financial reporting

Bookkeeping For Maltese Businesses

Bookkeeping is essential for to maintain accurate financial records. Yet, many businesses fail to implement this necessary process. Bookkeeping is the process of keeping completed records of financial transactions and updating them periodically from time to time.

Bookkeeping keeps records of aspects such as how much money your business owes and shall receive, what is the investment amount and the profit derived from it and such similar aspects.

The bookkeeping function eases business evaluations, helps to manage cashflow, enables the preparation of accounts and proper reporting to stakeholders including suppliers, investors and regulatory authorities. It also ensures effective tax compliance.

Books of Accounts and Accounting Records in Malta

All companies in Malta are required by the Malta Companies Act to maintain proper books of accounts and accounting records. These should reflect the true and fair financial position of a company. Accounting records should be kept at the registered office of the company.

Specifically, Article 19(1) of the Income Tax Management Act requires every person carrying on a trade, business, profession or vocation to keep proper and sufficient records of his income and expenditure to enable his income and allowable deduction to be readily ascertained. Such records include:

• Proper Accounts with respect to:
• all sums of money received or expended and the matters in respect of which the receipt or expenditure takes place; and
  • all sales, purchases or services rendered, as well as any other transaction, act or operation pertaining to the trade, business, profession or vocation
• A profit and loss account or equivalent annual statement
• A statement of the assets and liabilities as on the date on which the annual accounts of the trade, business, profession or vocation are made up or, in the case of a company, a balance sheet

For Malta tax purposes all accounting records must be kept for a period of not less than nine years after the completion of the transaction.

Our Bookkeeping Expertise

The accounting team at FF International assists clients with the following book-keeping services:

• Safe keeping of accounting records
• Booking of transactions and keeping proper books of accounts in accordance with the Maltese legislation and international standards
• Preparation of invoices drawn up in accordance with Maltese VAT law
• Bank reconciliations and recording of bank transactions
• Finalisation and year-end adjustments
• Drafting of management accounts and other financial reports
• Drafting of financial statements
• Preparation of profit and loss statements for self-employed individuals
  
  

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Records to be kept for VAT Purposes

Accounting records and document to be kept every person who carries on an economic activity in Malta and is registered under Article 10 of the Malta VAT Act shall include the following documents:

• Proper accounts and records of his economic activity
• A value added tax account
• An annual value added tax account
• Copies of all tax invoices issued by him
• All tax invoices received by him
• documentation relating to customs and, where applicable, excise procedures with respect to importation and exportation of goods by him
• Copies of all fiscal receipts issued by him in terms of the Thirteenth Schedule to the VAT Act
• All credit notes, debit notes and other documents issued by him o received by him which evidence an increase or a decrease in the consideration for any supplies, intra-community acquisitions or importations
• A register of goods transported by him or on his behalf out of Malta but within the Community which shows:
  • a description of the goods
  • their quantity
  • their value
  • their movements
  • a description and the quantity of the goods not transported back
  • the date and the reference to the documents issued, if any, relating
  • to these operations
• A record of movable tangible goods transported to him from another Member State by or on behalf of a taxable person identified for purposes of value added tax in that other State for the purpose of the valuation of or works on those goods showing
  • a sequential number
  • the date of receipt of the goods
  • the name and address of the customer
  • the value added tax identification number of the customer
  • the quantity of the goods received
  • a description of the goods received
  • the date of the transport of the processed goods after valuation to the customer
  • the quantity and the description of the goods that are not
  • transported back to the client
  • the date and a reference to the documents issued relating to the services supplies
• A register of goods transferred under the call-off stock arrangements referred to in item 17A of the Second Schedule of the VAT Act.

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Tax Invoice

In terms of the requirements of the Malta VAT Act, a tax invoice should contain the following details:

• the date of issue
• a sequential number
• the name and address of the supplier and the VAT number
• the name and address of the person to whom the supply is made and the Value Added Tax identification number of the customer
• the quantity and nature of the goods supplied or the extent and nature of the services rendered
• the date on which the supply was made or completed or the date on which a payment on account of the supply was made
• the taxable value per rate or exemption, the unit price exclusive of tax and any discounts or rebates if they are not included in the unit price
• the VAT rate applied
• the VAT amount payable
• where the person liable for payment of VAT is a tax representative in another Member State, the VAT identification number of that tax representative
• where the VAT becomes chargeable at the time when the payment is received in accordance with Parts One and Three of the Fourteenth Schedule, the mention “Cash accounting
• where a tax invoice refers to supplies on which no tax is chargeable, it shall indicate a brief reference to the relevant provisions of this Act
• Where the customer is liable for the payment of the VAT, the invoice should mention “Reverse Charge
• A tax invoice should make reference to the special scheme when this applies (Margin scheme – Travel agents, Margin scheme – Second-hand goods, Margin scheme – Works of art, Margin scheme – Collector’s items and antiques)

A taxable person who makes a supply that falls within the scope of the VAT Act shall be obliged to issue a tax invoice if his customer provides a VAT no. and such supply does not constitute an exempt without credit supply.

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