An aircraft whose owner is established in the European Union and is intended for commercial use may be imported through Malta for VAT purposes and thus enabling the aircraft to be in free circulation within the European Union.
This procedure is a full importation procedure and requires the aircraft to be physically present in Malta to undergo the necessary VAT and customs procedures. Most of the paperwork can be processed before the arrival of the aircraft to Malta therefore ensuring minimal turnaround time.
In terms of the VAT regulations in force in Malta aircrafts which are put on an AOC are considered to be "aircraft destined to be used by airline operators for reward chiefly for international transport of passengers and/or goods" and therefore favourable conditions apply when importing such an aircraft, namely:
- VAT is not chargeable when importing, acquiring and/or leasing and aircraft destined to be put on an AOC;
- VAT is not chargeable on services consisting of the modification and maintenance of the aircraft;
- VAT is not chargeable on the supplies of good for the fuelling or provisioning of the aircraft.
On the completion of this full importation procedure the aircraft will be in free circulation with the European Union.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.