On May 3, 2013, the Court of Magistrates in Malta gave judgment in favour of S&D Yachts Ltd of Malta following a dispute over the applicability of VAT charged by S&D Yachts on supplies made to a client vessel.
It was found by the court that S&D Yachts had been correct in charging VAT to the vessel and the vessel was ordered to pay the unpaid VAT amount plus interest and costs.
The vessel had refused to pay VAT on the grounds that they were a commercial yacht.
It was however found that the vessel's commercial certification had lapsed and that there was no evidence of the vessel being engaged in charter activity.
On this basis the vessel effectively was not commercial enough in the eyes of the court to warrant VAT free supplies.
The result of the case provides further case law precedent within the EU and specifically in Malta that to benefit from VAT free supplies a yacht must be earnestly pursuing a genuine commercial business.
The first four days of the 2020 edition of @nonstopboot BOOT Dusseldorf have flown by.... Please do not hesitate to contact us to meet up to discuss our yacht registration and crew payrollinstagram.com/p/B7l2ydWlcLf/…y4xR
The 2020 edition of @nonstopboot Dusseldorf Boat Show is open! Duncan is in Germany for the duration of the show and will be joined by Ryan later this week – please do not hesitate to contact us to meet up to discuss our yacht registration and crew payroll services… #boot2pic.twitter.com/n0DTuruHNTuHNT
This grey weather doesn't stop us! Today we were pleased to welcome and handle our first @Sunseeker_Intl 116 yacht of the year to @gsyharbours. It was also our Oceanskies Dory's first time out this year! #yachtagents #visitguernsey #yachtlife pic.twitter.com/VjoZfcQhOW