Special 12% VAT Rate For Yacht Charters Commencing In Malta

The most notable local development from a VAT /tax perspective in the realm of superyachts is undoubtedly the introduction of a special 12% VAT rate on charters commencing in Malta. This was introduced by the Malta tax authorities by virtue of Legal Notice 231 of 2023 titled the Value Added Tax Act (Amendment of Eight Schedule) Regulations, 2023 with effect from 1st January of this year. Subject to a number of conditions, charters will be able to benefit from a special 12% rate which is therefore lower than the standard 18% Malta VAT rate.

The Malta tax department also published guidelines to accompany the Legal Notice to better assist the industry in the application and interpretation of these Regulations.