As from this year the yachting chartering industry may benefit from a reduced VAT rate of 12%. The reduction of VAT rate was introduced to further boost the yachting industry and promote Malta as a prime yachting destination in the Mediterranean.
Malta is a recognised centre of excellence within the yachting industry. Its yachting register is one of the biggest in the world supported by specialised professionals such as surveyors, brokers, marina operators, lawyers and accountants.
As from 1st January 2024, the hiring of pleasure yachts may benefit from a reduced 12% VAT rate. Such reduced rate is applicable to the chartering of yachts to the same person for a maximum period of 5 weeks within a period of 12 months. The yacht must be put at the disposal of the lessee in Malta. Periods exceeding 5 weeks will be subject to the ordinary 18% VAT rate.
Should you wish to obtain more information about the application of such reduced VAT rate feel free to reach out to us on info@emcs.com.mt
