Read our insights, reports and more

This article explores when VAT exemptions in aviation leasing does not apply, focusing on key failure points such as non-airline entities, private use, domestic operations, and short-term hires. It explains how VAT becomes chargeable when exemption conditions are unmet, and why careful structuring is essential for airlines, lessors, and intermediaries navigating aircraft leasing.

Understand how VAT applies to aircraft leasing in Malta and the EU, including dry and we leases, leasing chains, and exemptions for international transport. Essential insights for aviation finance and tax / VAT professionals.

This article explores the unique VAT landscape in the aviation industry, focusing on international passenger transport and aircraft leasing. It explains how Maltese and EU VAT laws apply to airlines, the role of Air Operator Certificates, and the difference between dry and wet leases.

On October 6th 2023, the Minister for Finance published Legal Notice 231 of 2023, introducing a new 12% VAT rate on selected services. This aligns with EU directives for VAT rates across member states. Locally, this amendment to the VAT Act's Eighth Schedule offers a reduced VAT ate of 12% on certain services.