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Malta Clarifies VAT Rate on Boat Hire Services: Guidelines for 12% Application Explained

  • Malta has clarified the rules regarding the application of 12-percent VAT on the hiring of pleasure boats.
  • The 12-percent VAT rate applies to the hiring of a pleasure boat for a limited period.
  • If the term of the boat hire agreement is not more than five weeks, the 12-percent rate applies.
  • If the boat hire period exceeds five weeks, the 12-percent rate applies only to the first five weeks, with the 18 percent rate applying thereafter.
  • The place of supply is determined by where the customer is established, has their permanent address, or usually resides.
  • The guidance on the VAT rate is also relevant for taxable persons providing a package of supplies that constitute a single composite supply for VAT purposes.


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.


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