The Maltese Commissioner for Revenue recently published Guidelines regarding the VAT Treatment of the leasing of pleasure yachts based on the location of the effective use and enjoyment by the lessee of the pleasure boat. Lessees who are in a position to effectively demonstrate that the yacht is regularly used outside of EU waters, will be able to benefit from a reduced rate of VAT on the usage of the yacht as charged to them by the Lessor proportionate to the distance covered by the yacht within and outside EU territorial waters. Please note the Guidelines on the following link:-
In terms of the Guidelines, the VAT rate will be worked out according to the actual usage of the yacht in and outside EU waters. If the yacht is intended to sail in international (non-EU) waters frequently, then the owner and the lessee may be interested in entering a yacht lease agreement pursuant to the said Guidelines.
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