Onward Supply Relief (''OSR'')

We advise, assist and coordinate with clients who wish to import their yachts into the EU through Malta from a third country outside the European Union under the OSR regime. Upon completion of the Malta customs procedures and formalities pertaining to importation under the OSR regime, the yacht will be released into free circulation in Malta, and subsequently dispatched or transported to a taxable person. The OSR allows for the relief from paying VAT which would otherwise have been due on the importation of the yacht from a third country, which VAT would then be paid or accounted for in the member state of final destination.

The OSR provisions allow for deferment from the payment of VAT due on the importation of goods from third countries when the place of first destination is Malta, to the extent that the goods are intended for a subsequent dispatch to another Member State as an intra-community supply following their release into free circulation as authorised by Maltese Customs.  VAT would then be paid or accounted for in the Member State of the final destination.

To benefit from the OSR provisions the Malta VAT registered importer would also be required to submit a bank guarantee amounting to 10% of the VAT due at the Maltese rate on the value of the yacht. The guarantee will be released upon presentation of documentary evidence that VAT had been paid or accounted for in another Member State and that the yacht had proceeded to another Member State, which may not be the Member State of final destination.

BACK TO SERVICES