Malta Superyacht VAT Registration Rules and Conditions
The Malta Superyacht VAT Registration Programme offers yacht owners looking to buy a new luxury yacht attractive savings on VAT. The Malta Superyacht VAT Registration Programme is an approved EU programme that allows for VAT on luxury yachts entering EU waters to be paid at a reduced rate. For more information about to reduce your yachts VAT, click here.
However, to benefit from the reduced rate of tax, you must adhere to the below rules:
The rules and conditions are as follows:
1. The luxury yacht or pleasure yacht must arrive in Malta for the beginning of the lease agreement and subsequent VAT registration.
2. The financial leasing agreement shall be between a Maltese company and any Maltese or foreign person or company.
3. Permission must be authorised in writing by the Commissioner before VAT registration. The rate is dependent on a few factors including the size, propulsion and value of the yacht. Submission of a valuation certificate with the application for approval is needed. VAT registration is then confirmed.
4. At the beginning of the lease, an initial contribution shall be paid by the lessee to the lessor amounting to 50% of the value of the luxury yacht. This contribution is subject to the reduced VAT charge.
5. The remaining 50% of the value of the luxury yacht is spread over several lease instalments which is payable every month. The lease agreement typically spread across 12 -36 months. The recommended period is of 12 months.
6. The lessor shall be expected to make a profit from the leasing agreement above the value of the yacht.
7. Any purchase price of the luxury yacht at the end of the lease shall not be lower than 1% of the original value and will be subject to the full standard rate of 18% VAT.
8. If the lessee opts to purchase the Superyacht at the end of the lease, a VAT paid certificate is issued to the lessee.
9. Recognised classification societies.
If you would like more information about the relevant stages and what you need to be more tax effective, kindly enquire below or call us directly on +356 2122 7553.