5% VAT Opportunity


Ian Shepherd <g4ljf@...>
 

For those of you that have not paid VAT in Europe, you might be interested to know that Malta are offering a special 5% rate of VAT till the end of March this year. Here is an article that I found on the net:

Opposition leader Dr Alfred Sant has attacked the government for reducing the VAT payable on super yachts from 15 to five per cent. Sant said the decrease was unfair and socially unacceptable given that other sectors will have to face a higher tax on their purchases with the increase of VAT from 15 to 18 percent.
The Malta Financial and Business Times is informed that the change aims to attract more business in what is being seen as a niche opportunity prior to EU entry. Speaking to the owner of a yacht supplies business, The Malta Financial and Business Times was told that the idea of the VAT decrease is aimed at attracting foreigners to buy yachts and motor boats in Malta prior to EU entry.
According to the source, Malta will have to pay its VAT on such yachts and motor boats to the EU after membership on 1 May 2004 and the government saw the opportunity to try to attract purchasers to Malta before that time.
According to the legal notice LN 384 of 2003, the rate of VAT on certain seafaring vessels will be 5 percent from 1 December to 31 March. The vessels affected are: yachts and other vessels for pleasure or sport including rowing boats and canoes that are sailboats, with or without motors; sail boats and motor boats of a length exceeding 7.5 metres.
The Malta Financial and Business Times contacted the Malta Maritime Authority, which was not able to provide further information on the matter, and attempted to contact Finance Minister John Dalli for his reaction, but the minister was not available for comment.

End

I have checked this out with my Maltese registration company, and they have confirmed that this offer is in effect and genuine. Here is their response:

Dear Ian;

Please note that it has been definitely established that the special concession for payment of vat is valid until the end of march 2004 at a special reduced rate of 5%.

What is obviously required for this purpose is the following:

a-The attached authority is to be signed by the owner of each yacht and sent back to us in its original form.
b-a photograph of each yacht showing her name and as much of the yacht as possible.
c-a certified copy of the certificate of registration of each yacht
d- if privately owned a copy of the passport of the owner and if company owned a copy of the memorandum and articles of association of the company.
e- confirmation where each yacht is lying and whether each owner can sail here before the end of march for us to make an official valuation of the craft or alternatively we will send somebody to inspect for valuation purposes.

It is preferable if the yacht is registered under the Malta Flag.

So, a good opportunity if it suits you.

Fair Winds

Ian Shepherd SM2000 "Crusader"

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