On the 12th February 2020 the European Tax Commission decided to send an additional letter of formal notice to Malta for using an incorrect method of calculating VAT on the lease of yachts.
In their monthly overview of policy decisions the Commission stated:
“Following an initial letter of formal notice on 8 March 2018, Malta modified its legislation in order to align it with the necessary requirements under EU law. These new national rules are, however, still not completely in line with EU law. Maltese legislation currently uses a distance-based method when calculating the effective use and enjoyment of a yacht outside the EU. EU rules do not allow such a method to be used but require the use of a time-based method. The Commission is now sending a complementary letter of formal notice to Malta in order to ensure full compliance with EU law. Without a satisfactory response within 2 months, the Commission may decide to address a reasoned opinion to Malta.”
This latest development underlines the uncertainty of any arrangements, schemes or mechanism established in Malta (or elsewhere) for the reduced payment or deferral of VAT on yachts .
Here is a batch of Tonnage Plates for yachts we are registering with @RedEnsignGroup under British flag here @oceanskiesltd HQ awaiting courier despatch. These plastic strips are an important part of the yacht registration process #yachtregistration #yachtregistry pic.twitter.com/5xGR7f0Xo3
A beautiful start to the day again here @Oceanskies in St. Peter Port Guernsey were we are pleased to welcome the latest @sunseeker_int Sunseeker 50 Predator #Guernsey @guernseyharbours @locateguernsey @vistguernsey #PositiveVibes pic.twitter.com/rajLtbGriM
On this sunny Monday we are pleased to welcome this beautiful @Sunseeker_Intl 76 Yacht to @gsyharbours which is undergoing @RedEnsignGroup registration with Oceanskies - Anyone would think its Summer! #yachtregistration #yachtlife #Guernsey @LocateGuernsey #PositiveVibes pic.twitter.com/gy0sguWV5S
Today we have been Northern France visiting an incredibly busy @Lagooncats factory near La Roche sur Yon for the tonnage survey of a newbuild Lagoon 46 sailing catamaran undergoing @RedEnsignGroup registration by Oceanskies #lagooncatamaran #yachtregistration #tonnagesurvey pic.twitter.com/rwmKAuzOvX
Today Duncan has been in a sunny and warm Monaco for the tonnage survey of an @PrincessYachts Princess 82 undergoing red ensign registration by Oceanskies - we are a leading yacht registration agency working with the world’s best yacht registries #yachtregistration #tonnagesurvepic.twitter.com/PUl9Sy4L9a9a