Located along the Mediterranean’s principle shipping routes, Malta has established itself as one of the leading maritime hubs for both the commercial and leisure sectors, offering a vast range of facilities and competitive services within the industry. In February 2019, the Commissioner for Revenue revisited the VAT Treatment of pleasure yacht leasing to better reflect EU’s developments and practices. The new guidelines offer yacht owners the possibility of setting up attractive operational lease models, resulting in cash flow advantages and overall VAT optimisation. Based on the principle of ‘use and enjoyment’, Malta VAT is charged on the portion of the lease covering the actual use and enjoyment of the yacht within EU waters, whereas no VAT is applicable when the yacht is effectively used and enjoyed within non-EU or international waters.
As a multi-disciplinary firm that has extensive experience in the shipping industry, our team at E&S Group offers all the necessary services for the implementation of the said guidelines, including:
- Company formation and administration;
- Drafting, reviewing and vetting yacht leasing agreement;
- Liaison with VAT Authorities;
- VAT lease calculations and compliance;
- Bookkeeping and accountancy services
+356 20103020