Malta offers an advantageous procedure by which the importation of yachts to be used in furtherance of a commercial enterprise is not subject to the payment of VAT on such yacht. The procedure was amended in 2020.
Malta offers an advantageous procedure by which the importation of yachts to be used in furtherance of a commercial enterprise is not subject to the payment of VAT on such yacht. Indeed, the VAT is deferred for as long as such asset is availed of in commercial activity.
This year, the procedure was further updated. The following measures were recently adopted:
a. Deferment of VAT upon importation of a yacht into Malta (EU) by:
- Maltese owning entities with a Maltese VAT number; or
- EU owning entities with a Maltese VAT number (provided that a Malta VAT representative is appointed);
without the need for a bank guarantee on part of that VAT amount as required in the past;
b. Deferment of VAT upon importation of a yacht into Malta (EU) by non-EU owning entities on provision of a bank guarantee in an amount equivalent to VAT on 0.75% of the value of the yacht, capped at 1 million Euro.
This update makes it easier for entities to navigate this beneficial Malta-based VAT provision and will surely become more accessible to both EU and Maltese entities.
