Three new medical professions – counsellors, psychotherapists and dental technicians – have been added to the list of activities that do not need to collect Value Added Tax (VAT).

Dental prostheses, such as implants, crowns, bridges, dentures and veneers, when supplied by dentists and dental technicians, will also be exempt from VAT.

A new Legal Notice published last week (LN 228 of 2024) amends the VAT Act to recognise counsellors regulated by the Counselling Profession Act, psychotherapists regulated under the Psychotherapy Profession Act, and dental technicians, that is, persons acting in the exercise of dental technology as regulated by the Health Care Professions Act, as per guidelines issued by the Malta Tax and Customs Administration.

Many medical services have long been exempt from VAT, with this new development extending the exemption to a broader range of medical professions and services.

Prime Minister Robert Abela had announced the measure on Labour Party media earlier this month.

At the time, he said that the change “might not be massive, but may help so that more people have access to these services, naturally at a more affordable price.”

VAT stands at 18 per cent in Malta, although certain products and services also benefit from reduced rates, while others, like food and medicines, are fully exempt.