Author: Mr. Joseph Fenech
Published: 08th March 2024
Maritime Unit
Following the recent guidelines issued by Malta Tax & Customs Administration (MTCA), for the application of the reduced 12% VAT rate applicable on the hiring of pleasure yacht, the Ports and Yachting Directorate in Malta have issued a Port Notice, which elucidate the definition of “pleasure yacht”, for this purpose.
The notice reminds all concerned, that the hiring of a pleasure boat is deemed to be a commercial operation and therefore the vessel needs to be commercially licensed and certified in terms of the Commercial Vessels Regulations (S.L. 499.23). Notably, domestic pleasure yachts operating for hire or reward within Maltese waters are subject to commercial vessel regulations during their commercial operations.
Conversely, visiting pleasure boats intending to commence charter operations or receive services within Maltese ports, yet primarily operating outside Maltese territorial waters, are exempt from complying with statutory commercial vessel regulations. Nevertheless, such vessels must furnish documentation demonstrating their commercial status and compliance with Port Notice No. 06 of 2018, mandating specific certificates and documents during their calls and navigation within Maltese waters.
Click here to access the full text of the Port No. 01 of 2024.
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