Removal of Bank Guarantee - Commercial Yachts

| Published on 02 Apr 2020

Chetcuti Cauchi Advocates CCMalta default banner

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.


Request More Information

Please send me legal and other updates

Key Contacts

Dr Charlene Mifsud

Partner, Corporate & Commercial

+356 2205 6298
ccmifsud@ccmalta.com

Dr Jean-Philippe Chetcuti

Senior Partner, Tax & Immigration

+356 22056111
jpc@ccmalta.com

Dr Priscilla Mifsud Parker

Senior Partner, Corporate, Tax & Immigration

+356 22056122
pmp@ccmalta.com