Malta: Malta Tax And Customs Administration Releases Guidelines For Special 12% VAT Rate On Pleasure Yacht Hiring In Malta

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 1^st 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.

Originally published by 30 January, 2024

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