This latest development is based on an EU council directive which allows member states to adopt a VAT rate of no less than 12% on certain services that other member states have derogations on. The good news is that this includes “Hiring of a pleasure boat to a person according to an agreement for any term or part of a term that, when added to the term of a previous hiring, of the same goods or of other goods of the same kind, to the said person during the previous twelve (12) months ending on the date of the beginning of the existing hiring, does not exceed five (5) weeks.”

This means that a yacht that starts her charter in Malta will pay 12% VAT on the charter fee as long as prior arrangements are made such as applying for a VAT no for the owning company in Malta.

Malta also has other benefits to offer, pre charter the yacht will find most of its requirements by way of provisioning, chandleries and any last minute emergency repairs. The island is located in the middle of the Mediterranean and whilst being in itself a gem cruising spot (excellent diving and fishing) is also close enough to other popular destinations such as Sicily, Sardinia and also Greece. Malta boasts a myriad of fine dining venues and beautiful Hotels if required. It is also a fantastic place for Crew to relax between charters. Our airport is very well connected and we are able to handle guests arriving by private Jets using the VIP lounge and luxury cars for transfer purposes.

S&D Yachts are well experienced with this procedure having applied it for several years under a previous structure. Pre planning is highly recommended since the procedure needs time to be put in place.

We can also organize the Commercial Yacht Exemption Importation from Malta which does have certain benefits over other Commercial Exemptions in that it is easier to operate without the need to log trips for example.

Every day, we strive to refine and update ourselves to meet the evolving demands of the market, delivering the highest standard of service within our sector. We would be glad to meet you to explain the wonderful benefits of this incentive to your charter clients. At S&D we are proud to able to look after the whole procedure in house from applying for the necessary fiscal requirements to organizing all the logistics including berth reservation and looking after any requirements that the crew, captain or guests may have.