New Guidelines on VAT Treatment of Short-Term Yacht Chartering

Malta’s VAT Department has new guidelines on the VAT treatment of short-term Yacht Chartering.

The VAT Department in Malta has issued new guidelines on the VAT treatment of short-term Yacht Chartering, where the charter’s term does not exceed 90 days.

A short-term charter of a yacht is a supply of a service; therefore, treated at the standard rate of VAT. However, the taxation of this supply shall be limited to the portion of the use of the yacht in EU territorial waters.

The supplier would be subject to certain conditions to qualify for this VAT treatment on short-term yacht chartering.