Malta – Guidance on zero-rating scheduled sea transport of passengers

The tax & customs administration of Malta published, on 1 August 204, a detailed guidance about the application of the exemption to passenger sea transport (with the right to deduct). The document mostly focuses on the definition of other scheduled sea transport of passengers and lists a set of conditions without which the exemption cannot be applied. The document also clarifies that the supplies of goods and services on board vessels cannot be treated as a single composite supply together with the respective transport service.