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ARTICLE · 05 JULY 2006

Registration Of Yachts In Malta With VAT At 5.4%

Griscti & Chetcuti Advocates, Malta
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The Maltese VAT Department has just published a guideline about the taxation of yachts which are lease-purchased to third parties by a Maltese International Trading Company (herein called an ITC). For the purposes of these guidelines, a lease-purchase is seen as a situation whereby a Maltese company purchases a yacht and leases it to a third party with an option in favour of the third party to purchase the boat at a reduced price at the end of the lease.

MaltaTransport
Marco Griscti
Marco Griscti

The Maltese VAT Department has just published a guideline about the taxation of yachts which are lease-purchased to third parties by a Maltese International Trading Company (herein called an ITC). For the purposes of these guidelines, a lease-purchase is seen as a situation whereby a Maltese company purchases a yacht and leases it to a third party with an option in favour of the third party to purchase the boat at a reduced price at the end of the lease. 

Until the publication of this guideline, lease-purchasing was something of a touch-and-go situation as regards the payment of VAT and the new guide lines seek to regularize the payment of VAT on this type of operation related to yachts. 

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