As of 1 January 2024, Malta has introduced a reduced VAT rate of 12% on certain services, including the short-term hiring of pleasure boats, subject to specific conditions.

This new rate applies to charters of up to five weeks in a 12-month period to the same person, providing a significant tax benefit for eligible charters.

Fenlex can guide you through the compliance process to ensure your yacht charter meets the requirements for the reduced VAT rate.

William Cassar, Head of Tax at Fenlex, breaks it down in his latest article.