Yesterday, the Malta Tax and Customs Administration (MTCA) has published Guidelines on the application of the special 12% VAT rate in relation to the hiring of pleasure yachts, applicable only in respect of supplies that take place in Malta from a Maltese perspective.
Essentially, following the adoption of Legal Notice 231 of 2023, the 12% VAT rate applies to several services, including the hiring of a pleasure yacht, subject to certain criteria, with effect from the 1st of January of 2024. These Guidelines offer various hypothetical scenarios to help ascertain if the hiring of a pleasure yacht qualifies for this special 12% VAT rate.
Get in touch with CSB Group's Yachting and Tax Experts here or on [email protected] for further guidance and clarifications.
