VAT- Aircraft leasing guidelines/initiative – VAT Mitigation and simplification measure
The VAT Department in Malta has issued guidelines relating to aircraft leasing. The guidelines which are based on the current yacht leasing measures, seek to mitigate the VAT impact on the purchase of an aircraft and its engines. The guidelines would apply to aircrafts used privately. The mitigation measure applies by virtue of the adoption of a leasing arrangement which is entered into by the owner of an aircraft and its lessee. Both the owner and the lessee would need to be Maltese registered entities. VAT at the standard Maltese rate is levied on the deemed usage of the…
MamoTCV Advocates7th May 2016