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Network News • 31-01-2024

MTCA guidelines for the application of 12% VAT rate on the hiring of pleasure boats

The Malta Tax and Customs Administration (MTCA ) issued guidelines to provide guidance, in conformity with article 75(2) of the VAT Act, on the application of the 12% reduced VAT rate on such supplies.   


The guidelines can be download from the MTCA website by clicking this link 


The MTCA notifies that as from 1st January 2024, in the application of a 12% VAT rate on several services, including the hiring of a pleasure boat to a person according to an agreement for any term or part of a term that, when added to the term of a previous hiring, of the same goods or of other goods of the same kind, to the said person during the previous twelve (12) months ending on the date of the beginning of the existing hiring, does not exceed five (5) weeks.

The reduced VAT rate of 12% shall apply to the supply of the aforementioned services where the tax on such services becomes on or after 1st January 2024.

Should you require further information in relation to these new changes, please get in touch with Michael Caruana on

 Please note that this article is being published solely for informational purposes. It is imperative to note that this content neither constitutes nor should be inferred as legal advice or guidance. PKF Malta Limited explicitly disclaims any responsibility or liability for potential damages that may arise from the utilisation of this information as a substitute for professional legal advice or guidance.

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