The Maltese VAT Authorities have recently issued updated Guidelines relating to VAT Aircraft Leasing arrangements concerning privately operated aircraft. The Guidelines establish VAT-ability of the lease based on the deemed use of such aircraft within the EU airspace. The Guidelines have been simplified and they now enable a wider range of aircraft to benefit from the leasing arrangements. Indeed, the VAT-able portion of the lease is no longer dependent on a series of specifications but only on the flight range of the aircraft. This is another step towards the enhancement of Malta’s significance as an aviation jurisdiction.
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