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ARTICLE · 29 AUGUST 2024

Guidelines For VAT Exemption On Scheduled Sea Transport Of Passengers

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The Commissioner for Tax and Customs has published guidelines in terms of Article 75(2) of the VAT Act which determine how the VAT exemption contained in item 11 paragraph (b) of Part One of the Fifth Schedule to the VAT Act may be applied.

MaltaTransport
Anton Vella Laurenti
Anton Vella Laurenti
Joselyn Teuma
Joselyn Teuma
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The Commissioner for Tax and Customs has published guidelines in terms of Article 75(2) of the VAT Act which determine how the VAT exemption contained in item 11 paragraph (b) of Part One of the Fifth Schedule to the VAT Act may be applied.

Pursuant to item 11(b) of Part One of the Fifth Schedule to the VAT Act a zero VAT rate applies to the supply of:

"scheduled inter-island sea transport of passengers by authorized carriers and other scheduled sea transport of passengers recognized as such by the Commissioner.

For avoidance of doubt "scheduled inter-island sea transport of passengers" shall mean scheduled transport of passengers between the islands of Malta and Gozo".

The Commissioner will recognise services for the purpose of applying this zero VAT rate that meet the following conditions:

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