- Malta has introduced a reduced VAT rate on the hiring of pleasure yachts.
- The reduced rate of 12% will apply to short term charters starting from January 1, 2024.
- The reduced rate is subject to certain criteria being fulfilled.
- This change is implemented through the Legal Notice 231 of 2023, which amends the Eighth Schedule to the Malta Value Added Tax Act.
- The aim of this change is to promote the hiring of pleasure yachts in Malta.
- It is expected to attract more tourists and boost the local economy.
- The reduced VAT rate will make Malta a more competitive destination for yacht charters.
- This move is part of Malta’s efforts to develop its maritime sector and attract more yacht owners and operators to the country.
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.