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 1st 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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