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It is possible to register eligible yachts in the Maltese Commercial Yacht Register.
Registration in this type of register enables the yacht owner, operator or charterer to utilise the yacht on a commercial basis in international waters including chartering. Registration under the Commercial Register involves the submission of more documents and more detailed surveys but this type of registration may lead to income tax, VAT exemptions and other benefits.
A provisional license is issued in the same way as it issued for pleasure yachts and vessels. However, a provisional Commercial Yacht registration certificate is issued on a non-operational basis until the yacht owner submits the required documents to the authorities confirming that the safety conditions imposed by the Maltese Commercial Yacht Code and international conventions have been fulfilled. In order to obtain an operational licence and a permanent registration, the applicant is required to produce documentation relating to abidance by the yacht of the safety standards, Class registration, as well as produce a survey report, issued by Government approved surveyors or authorized Classification societies, confirming that the technical standards required by the Maltese Commercial Yacht Code are complied with.
Tax exemptions and benefits
Maltese law contains certain exemptions and benefits available to commercial yachts operating in international waters. Maltese VAT legislation provides for certain exemptions from VAT which could be relevant in the context of commercial yachts. The law contains an exemption from VAT on:
- the importation or supply of vessels used for navigation on the high seas and carrying passengers for a reward or used for the purpose of commercial activities
- the supply of services consisting in the hiring, leasing, chartering, modification or maintenance of the vessels referred to above.
Therefore, the law exempts from VAT the importation, sale, chartering, leasing and a number of services relating to yachts engaged in commercial activities. The fact that a yacht is registered in the Maltese Commercial Register is evidence that the yacht is fit for navigation on the high seas and fit to be used for commercial activities. A confirmation for the exemption is usually requested from the Maltese VAT Department. This kind of exemption is attractive for yachts (especially new yachts) imported into Malta from the EU or from outside the EU.
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