Yachts imported in the European Union for commercial purposes need to undergo relative VAT and customs procedures to subsequently be imported in the European Union with the release of the relative import documentation and thus bringing the yacht into free circulation.
Owners choosing Malta to import the yacht will need to call at a port in Malta to undergo the relative VAT and customs procedures applicable.
Malta used to provide for a deferment on VAT for Maltese and EU owning entities, against a bank guarantee issued in favour of the VAT Department, on assets, in this case yachts, being imported into Malta for commercial purposes. The bank guarantee was a requirement to ensure that the yacht imported into Malta is used for commercial matters of the owning entity. Should the VAT Department determine that the owning entity be in breach of such requirement, and never intended to use the yacht for the entity’s commercial purposes, the bank guarantee will thus be released in favour of the VAT Department.
Nevertheless, on the 20th of March 2020, local authorities have amended the importation and deferral of VAT procedures of yachts being imported for commercial purposes into Malta as follows: