Value added tax on yachts

Value added tax on yachts

On 8 March 2017, the Commission opened infringement proceedings against Cyprus, Greece and Malta over the application of VAT on the provision of yachts. The application of VAT by Malta has always been in line with EC laws and with practices adopted by other Member States.

1. Why did the notice of infringement target these three countries alone?

2. Malta applies the principle of effective use and enjoyment in a manner identical to that of France and Italy. However, such a notice was not sent to these two Member States. Why?

3. Both France and Malta classify yacht leasing as the supply of services. Moreover, France applies a reduction of 50%. Why is Malta’s classification being questioned?

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