- Malta is a prominent location in the maritime industry due to its incentives and geographical position.
- Malta offers comprehensive services for yachts, including VAT incentives for yacht owners.
- From January 2024, short-term charters in Malta benefit from a reduced 12% VAT rate under specific conditions.
- New guidelines have been issued for the application of the 12% VAT rate on yacht rentals.
- Guidelines from March 2020 outline VAT treatment for leased pleasure yachts, focusing on use and enjoyment provisions.
- Yacht leasing requires a Maltese lessor, a leasing agreement, and the lessee must not use the yacht for commercial purposes.
- VAT is based on the yacht’s use within EU waters, with adjustments for use outside EU waters.
- Full VAT at 18% applies if the service is supplied in Malta, but adjustments are made for use outside EU waters.
Source: dixcart.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.
