For The Malta Super Yacht VAT Registration Programme, the Malta VAT Department has determined that when a Malta company purchases a yacht and lease purchases it to third parties, then VAT is due on the lease as this a supply of a service in Malta.
The rate of VAT on this type of supply would be the standard rate of 18%, but the Malta VAT department has established that VAT charges should only on the portion of the lease during which the yacht is in EU waters.
But is difficult to measure precisely, so the Malta VAT department has established VAT rates that determine a percentage of the lease that is subject to VAT based on the amount of time the yacht has spent in EU waters. This percentage is based on the size, means of propulsion and the value of the yacht. This VAT structure is unique to the Malta Superyacht VAT Registration Programme.
The VAT leasing rates are as follows: