How is the use of boat within EU territorial waters calculated?
It is very difficult to trail the movements of pleasure boat in order to determine the period that the boat spends within the territorial waters of the EU and the time it spends outside the EU. In this regard, these guidelines establish the estimated percentage portion of the lease based on the time that the boat is used within the territorial waters of the EU. These percentages are set according to the length of the boat and its means of propulsion (power or sailing). The standard rate of VAT of 18% is applied on the established percentage of the lease, deemed to be related to the use of the boat in EU territorial waters. The table below indicates the established percentage portions according to the type of boat: In order to apply these guidelines the following conditions shall apply: • The leasing agreement shall be between a Maltese company and any Maltese or foreign person or company. • The Lease instalments shall be payable every month for a period of not more than 36 months. • Pr
