With careful planning, a lessee
of a pleasure yacht can be the owner of an EU VAT registered boat having paid
minimum VAT as little as 5.4%.
In order to avail of such
beneficial vat rate certain conditions must be met whereby the Maltese vat
registered company (the lessor) would lease the boat to a third party (the
lessee), that is, either a Maltese or foreign individual or company via a lease
agreement. Furthermore the lessee may opt to purchase the boat at a
percentage of the original price. An initial contribution is to be paid
by the lessee to the lessor amounting to 40% of the value of the yacht at the
beginning of the lease period and thereafter lease instalments shall be payable
for a period not exceeding 36 months.