NEW REDUCED VAT RATE ON THE HIRING OF PLEASURE BOATS

  • By:Melissa Speigner

Malta’s Commissioner for Revenue has published Guidelines on the reduced VAT rate applicable to the hiring of pleasure boats. In terms of the Value Added Tax Act (Amendment of Eighth Schedule) Regulations 2023, extended the scope of the reduced VAT rate of 12% rate on the hiring of pleasure boats, among other things, with effect from 1st January 2024. These guidelines provide an interpretation of the rules for applying the 12% rate along with several examples. The guidelines also cover the application of the 12% rate when other supplies, subject to different VAT treatment, are included as part of a package for hiring a pleasure boat, in which case the 12% rate may be applied to the package as a composite supply if the principal component is the hiring a pleasure boat and certain other conditions are met.

Source: Orbitax

Posted in: International Taxation