European Commission closes infringement procedures against Malta in connection with the VAT treatment of yacht leasing

European Commission closes infringement procedures against Malta in connection with the VAT treatment of yacht leasing

European Commission closes infringement procedures against Malta in connection with the VAT treatment of yacht leasing

On 30 October 2020, the European Commission closed certain infringement procedures initiated against Member States for not complying with the provisions of the Council Directive 2006/112/EC (“VAT Directive”). The VAT treatment of yacht leasing in Malta had been among the procedures undergoing examination.

Accordingly, the Guidelines regarding item 12, Part Two, Third Schedule to the VAT Act issued on 12 March 2020 by the Office of the Commissioner for Revenue regulating the application of the ‘use and enjoyment’ provisions as prescribed by Article 59a of the VAT Directive and Item 12 of Part Two of the Third Schedule to the Malta VAT Act (Chapter 406 of the Laws of Malta), will be applicable.

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