Located in the centre of the Mediterranean’s crystal blue waters, Malta has always retained a strong heritage in maritime, from its traditional fishing industry to its historic use as a transhipment hub in the Mediterranean. Over the last decade, Malta has consolidated its status as an international Mediterranean centre of maritime excellence. Its strategic location, natural harbours and extensive range of maritime services and towage services have contributed to making Malta a leading maritime hub.
A well-established, respected and regulated jurisdiction, Malta now hosts the largest and one of the fastest growing ship registers in Europe, and is considered a major logistics provider in the Mediterranean. As well as its strategic position in the middle of the Mediterranean Sea, one of the main contributors to Malta’s success is the business-friendly environment adopted by the Maltese authorities. The Authorities are approachable and flexible in their practices, while at the same time meticulously follow a rigid framework of guidelines and regulations, and this has created a cutting edge for Malta within this sector.
For many years Malta offered an efficient and attractive procedure for the importation of commercial yachts that are intended to be brought into free circulation within the EU so as to enable them to carry out their chartering season in the Med. Recent updates render the procedure even more effective and streamlined.
The confirmed new procedures are as follows:
- Deferment of VAT on the importation of commercial yachts by Maltese owning entities having a Maltese VAT registration without the requirement of the importing entity setting up a bank guarantee;
- Deferment of VAT on importation of commercial yachts by EU owning entities having a Maltese VAT registration provided that the company appoints a VAT representative in Malta in terms of Article 66(2)(b) of the VAT Act without the requirement of the importing entity setting up a bank guarantee;
- Deferment of VAT on the importation of commercial yachts by non-EU owning entities on provision by the importing entity of a bank guarantee in an amount equivalent to VAT on 0.75% of the value of the yacht which would be capped at 1 million EUR.
If you have any questions or simply want to learn more about the new VAT procedures, do please email our Malta Client Director, Alex Beetham, at firstname.lastname@example.org
Please read our Legal Information on our website.