Popular Maltese chef and restaurateur Sean Gravina has called on the government to consider lowering the VAT rates for the catering industry saying that the industry is burdened by increasing costs. Sean Gravina said that the catering industry has been severely hit with rising labour costs, shrinking margins and rising energy costs.
Malta has avoided the inflationary energy crisis in Europe by subsidising electricity and fuel costs, but food inflation in Malta is on a consistent and rising trend, and at a higher and faster pace than the EU’s average. Both food and restaurant prices have increased significantly in Malta along with Labour costs. Maltese restaurants also face competitive disadvantages against foreign-owned establishments that can successfully pay less taxes.
The popular chef referred to other countries which have already lowered their VAT rates in their respective catering industries with Germany’s VAT rate going down to 7% in 2026. Spain lowered its rate from 21% to 10% for foodstuffs while the rate in France for the catering industry is at 10%.
Malta’s VAT rate is 18% which also applies to catering services.
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