Malta has for many years 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 introduction of the following measures is intended to further strengthen the procedure governing the importation of commercial yachts in Malta:

1. 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 as required in the past.
2. 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 as required in the past.
3. Deferent of VAT on 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 in all cases be subject to a cap of one million Euro (€1,000,000).

For further information and guidance, kindly feel free to contact Alison Vassallo at alison.vassallo@fenlex.com or alternatively on 00356 21241232.