Malta Yacht VAT Leasing Rates

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:

Type of Yacht % of Leasing subject to VAT Effective Rate of VAT
Sailing Yacht or Motor Yacht between 20.01m to 24m 30% 5.40%
Sailing Yacht between 20.01m to 24m 40% 7.20%
Motor Yacht between 16.01m to 24m 40% 7.20%
Sailing Yacht between 10.01m to 20m 50% 9%
Motor Yacht between 12.01m to 16m 50% 9%
Sailing Yacht up to 10m 60% 10.80%
Motor Yacht between 7.51m to 12m (Commercial) 60% 10.80%
Motor Yacht up to 7.5m (Commercial) 90% 16.20%
Craft permitted to sail in protected waters  100% 18%

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.

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