Malta Implements Reduced VAT Rate for Short-Term Hiring of “Pleasure” Boats

• Short-term hiring of “pleasure” boats in Malta subject to 12% VAT rate
• Five-week term limit to determine VAT rate
• If boat not made available to same person in previous term, 12% VAT rate applies
• If boat made available in previous term and five weeks did not lapse, 12% VAT rate applies to remaining period
• If boat made available in previous term and five weeks lapsed, standard 18% VAT rate applies
• Rule reduces VAT cost on short-term hires in Malta

Source: kpmg.com

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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