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VAT Guidelines – Yacht Leasing Operations

Dated: [bxcode.pagedata.date]

Further guidelines have been issued by the Malta Vat Department on the 28th February 2019. These guidelines refer specifically to Item 12 of Part Two of the Third Schedule of the Vat Act, namely addressing the yacht leasing operations and seeking to mitigate the VAT impact on the purchase of a pleasure yacht, which is then leased out.

The yachting industry is strong in Malta and the Vat Department has ensured that these new guidelines retain Malta’s position to be on the forefront by adopting the best practises in the industry as well as reflecting the latest developments in the EU.
These guidelines allow the possibility to mitigate the Vat charged on a yacht leasing arrangement based on the actual effective use and enjoyment of the yacht in EU territorial waters. This will ensure that throughout the lease arrangement the Vat levied shall only target the lease covering the effective use and enjoyment solely within the EU whilst no Vat shall be charged when such use and enjoyment is outside EU or in international waters.

Please feel free to contact LexPractis should you require further information on the adoption and implementation of this measure.

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Office: +356 2122 1030 | +356 2122 1130
Fax: +356 2122 1002

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