VAT on Aircraft Leasing Arrangements | KPMG | Malta

VAT on Aircraft Leasing Arrangements

VAT on Aircraft Leasing Arrangements

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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