New guidance issued on the VAT Exemption pertaining to other scheduled sea transport of passengers
The Malta Tax and Customs Administration has issued guidance on applicability of the VAT Exemption (zero VAT rate) pertaining to other scheduled sea transport of passengers.
With effect from 1st August 2024, the Commissioner shall consider for recognition as such those services consisting of scheduled sea transport of passengers provided by a taxable person (“Operator”) which satisfy the following conditions:
- Provided on the basis of a pre-determined schedule approved by Transport Malta;
- Operated on a fixed route approved by Transport Malta;
- Such route shall specify specific embarkation and disembarkation points, or consequent embarkation/disembarkation points within the fixed route. Such route shall contain at least two different embarkation points and shall not consist of any stop-over or deviations outside the established route;
- Provided using vessels which are duly registered and licensed in terms of the Ports and Shipping Act;
- Schedule shall provide a list of exact times and dates, for the routes established, and shall be made publicly available online at least 3 months in advance;
- The Operator shall ensure to retain the publicly available schedule.
Failure to meet any of the conditions above shall immediately exclude any Operator from the VAT exemption.
An application by an Operator for recognition by the Commissioner shall be filed via e-mail addressed to servizz@gov.mt containing the approvals from Transport Malta, referred to above, and such other information relating to the conditions outlined above.
Should you require further information in relation to these new changes, please get in touch with Michael Caruana on mcaruana@pkfmalta.com.
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.