Malta’s Growing Maritime Industry

Place of Supply Guidelines and VAT Regulation for Yachts Registered in Malta

New Malta Place of Supply Guidelines were issued on the 28th of February 2019 featuring new regulations on a new operating lease model surrounding the place of supply of the chartering of yachts. The guidelines affect the lease of pleasure yachts registered in Malta after the 1st November 2018 and regulate the VAT of those yachts intended to be used outside EU territorial waters.

VAT Planning

VAT owing will be established on a ratio based on technical data determining the use of the yacht inside and outside EU territorial waters. The ratio is established by determining the use of the yacht inside and outside the EU and establishes tax periods, output tax and any overpaid tax.

Requirements for Yacht Leasing

The guidelines also establish the requirements for yacht leasing in Malta. The requirements include the establishing a shipping organisation in Malta that intends to lease a yacht, setting up of a predetermined lease period and a consideration in a lease contract, the intended use of the yachts to be indicated in a financial model designed in accordance with the yacht specifications, as well as the payment of VAT of the yacht and the lease payment instalments.