Update on Malta Superyacht Charter VAT
According to a recent statement The Maltese government clarified the situation regarding application of VAT on short-term yacht charters with a set of official Guidelines coming into immediate effect.
These ‘Guidelines for the VAT treatment of short-term yacht hiring’ will apply to any charters less than 90 days long, commencing in Maltese waters. A VAT rate of 18% will continue to apply to these charters, however the good news is this will only be applied on a proportional basis depending on the amount of time the charter spends in EU waters.
This means if a charter commenced in Malta but the yacht then travelled to a destination outside the EU such as nearby Tunisia, Maltese charter VAT would not be charged for the time the yacht was outside Maltese waters.
This concession is a significant gesture on the part of the Maltese government, showing they are keen to encourage Malta as a yachting hub and a great base for charter yachts to operate from.