The yachting industry is an ever growing industry in Malta.
The VAT Guidelines issued by the VAT Department acknowledge the difficulty of a lessor of a yacht to determine and charge VAT on the exact period of time which the yacht, whilst in the hands of a lessee, spends in EU waters. In instances when such assessment is challenging, upon application to the VAT Department and with justification, the VAT Department may consider accepting that the time that the boat spends in EU waters would be an estimated percentage based on the length and means of propulsion of the boat.
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