VAT YACHTS SOLUTION
REQUIREMENTS
In order for VAT on Malta leases to be levied on the basis of the actual yacht’s use and enjoyment within the EU territorial waters and to benefit from the guidelines, the following requirements have to be followed:
- the lessor must be a Maltese shipping organisation established in Malta for VAT purposes and holding a Malta VAT number;
- the lessee may be established outside Malta, be- ing a non-taxable person and therefore using the yacht for pleasure and not business purposes;
- the lessor and the lessee must enter into a leasing arrangement and the lease must be for more than 90 days (long-term lease);
- the leasing of the yacht must be undertaken through Malta and hence the yacht must be placed at the disposal of the lessee in Malta;
- the lessor must keep appropriate records in relation to the actual use by the lessee of the yacht in/ outside the EU; and
- VAT returns must be properly submitted and an annual declaration filed with the Commissioner of Inland Revenue.
Talk to our Lawyers
