🧾 Do I have to declare and pay tax on extra income from selling online in Malta?

Yes

Quick answer

Yes — extra income from selling online is taxable in Malta, but if it qualifies as part-time self-employment you pay only a flat rate of 10%. That rate applies on the first €12,000 of part-time income a year, and is paid with Form TA22 through the MTCA portal by 30 April of the following year. The tax is final on that amount, so it is not taxed again. The myth: that the part-time rate is 15%. It was 15%, but it was reduced to 10% — many sites and online advice still repeat the old figure. To qualify, you must have a main source of income (like a full-time job or a pension) and the online activity must be secondary. If part-time income goes over €12,000, you declare the excess in your normal return at the progressive rates, and regular large-scale selling can become a full business.

📋 The rules

Income from selling online is taxable; there is no general exemption for a "hobby" that brings regular profit.
As part-time self-employment, you pay a flat rate of 10% on the first €12,000 a year — not 15%, which is the old rate.
Payment is made with Form TA22 through the MTCA portal, by 30 April of the following year.
The tax on that amount is final; you do not need to declare that income again in the annual return.
To qualify you must have a main source of income and the online activity must be secondary and part-time.

🔓 Exceptions

If part-time income goes over €12,000, the excess is taxed at the normal progressive rates in the return.
Occasional selling of your own used personal items is generally not a taxable business, but buying-to-resell for profit is.
At a large scale or with stock, the activity becomes a full business, and VAT and other registration obligations can arise.

⚠️ Penalties & fines

Failing to declare taxable income from online selling brings the same consequences as any undeclared income: the MTCA can impose back tax, interest and penalties on the hidden amount. Because the part-time rate is low (10%) and simple to pay with Form TA22, the cost of avoidance is often worse than the tax itself. Digital platforms now report sellers' income to tax authorities under EU rules, so your income can show up even if you do not declare it. If you think the rate is 15% and overpay, you lose money needlessly; if you pay nothing, you risk worse. And if the activity grows into a business, new obligations arise — registration, possibly VAT, and accounts — which, if ignored, can build into a large debt to the government.

📎 Official sources

Last verified: 2026-07-12

❓ Frequently asked

Do I have to pay tax if I sell things online?

If you are selling regularly to make a profit, yes — this is taxable income and you must declare it. Occasional selling of your own used personal items is generally not a business, but buying items specifically to resell them for profit counts as a taxable activity.

Is the part-time rate 10% or 15%?

The current rate on part-time self-employment is 10% on the first €12,000, not 15%. Many sites and pieces of online advice still repeat the old figure of 15%, which was reduced, so be careful not to pay more than you should.

How do I pay the tax on part-time income?

You fill in and submit Form TA22 through the MTCA portal, and pay the 10% rate by no later than 30 April of the following year. The tax is final on that amount, so you do not need to include that income again in your annual return.

What happens if income goes over €12,000?

The flat 10% rate applies only up to €12,000 of part-time income a year. The excess must be declared in your normal return and taxed at the progressive rates, and if the activity grows it can be treated as a full business.

Do selling platforms tell the tax authority about my income?

Yes — under EU rules, digital platforms report sellers' income to the tax authorities. This means your income can be visible to the MTCA even if you do not declare it, so it is better to pay the low rate than to risk penalties.

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