New Guidelines on 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 term of the charter does not exceed 90 days. A short term charter of a yacht is a supply of a service and is therefore treated at the standard rate of VAT. However the taxation of this supply of service 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. To refer to the guidelines, please use the below link:

http://vat.gov.mt/en/VAT-Information/Guidelines-to-certain-VAT-procedures/Documents/GUIDELINES%20FOR%20THE%20VAT%20TREATMENT%20OF%20SHORT%20TERM%20YACHT%20CHATERING_vers%2005.pdf