Malta Offers Lower VAT Rate of 12% for Short-Term Yacht Charters Starting in Country

• Malta has lowered its VAT rate to 12% for short-term yacht charters starting in Malta
• The standard VAT rate in Malta is 18%
• The new rate took effect on Jan. 1, 2024
• To qualify for the reduced VAT rate, the charter must not exceed 35 days or five weeks with the same person within the previous 12 months
• The charterer must physically take possession of the yacht in Malta
• The reduced VAT rate will be beneficial for high-value charters
• The VAT rate will increase to 18% if the charter exceeds 35 days within the previous 12 months

Source: the-triton.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.