Comments for Sarnia Yachts http://www.sarniayachts.com Sarnia Yachts relies on its uncompromising commitment to quality, professionalism and service. We consistently aim to search out the right answers for yacht owners. Wed, 02 Nov 2011 15:47:25 +0000 hourly 1 http://wordpress.org/?v=3.2.1 Comment on What is the current position with regard to VAT on Italian charter fees? by Chris Hole http://www.sarniayachts.com/blog/current-position-regard-vat-italian-charter-fees/#comment-88 Chris Hole Wed, 02 Nov 2011 15:47:25 +0000 http://www.sarniayachts.com/blog/current-position-regard-vat-italian-charter-fees/#comment-88 Hi Martin Yes, what you say is correct. France is the exception for VAT on commercial yachts. Elsewhere in Europe, including Italy, you have to have evidence that VAT has been paid/accounted for on the hull as a basic requirement to charter. If not, you run the risk of detention as Italy no longer follows the French exemption. Hi Martin

Yes, what you say is correct. France is the exception for VAT on commercial yachts. Elsewhere in Europe, including Italy, you have to have evidence that VAT has been paid/accounted for on the hull as a basic requirement to charter. If not, you run the risk of detention as Italy no longer follows the French exemption.

]]> Comment on What is the current position with regard to VAT on Italian charter fees? by Martin http://www.sarniayachts.com/blog/current-position-regard-vat-italian-charter-fees/#comment-87 Martin Wed, 02 Nov 2011 15:11:52 +0000 http://www.sarniayachts.com/blog/current-position-regard-vat-italian-charter-fees/#comment-87 Does this mean that yachts with no VAT paid on the hull, even if charters start in France & claiming FCE, cannot charter in Italy Does this mean that yachts with no VAT paid on the hull, even if charters start in France & claiming FCE, cannot charter in Italy

]]> Comment on Why is there concern again over the French Commercial Exemption? by Darryl Sharman http://www.sarniayachts.com/blog/concern-french-commercial-exemption/#comment-79 Darryl Sharman Fri, 28 Oct 2011 14:58:51 +0000 http://www.sarniayachts.com/blog/concern-french-commercial-exemption/#comment-79 Thanks Sam We believe that Vat is going to have to be accepted as a part and parcel of charter activity. At what level remains to be seen and is a subject we are keeping a close eye on. One should expect further Blogs on this subject when more information is known. However there has to be a reality check and, whilst I concur with some of your observations, a totally Vat exempt charter world is not the way things are ever likely to go nowadays. Owner charter is a somewhat different subject with limited owner charter being generally accepted. Vat costs on sundries may be a small price to pay to protect the hull Vat which is the main impetus for yacht owners. If there is only owner charter then there are other factors to be concerned about Thanks Sam
We believe that Vat is going to have to be accepted as a part and parcel of charter activity. At what level remains to be seen and is a subject we are keeping a close eye on. One should expect further Blogs on this subject when more information is known.
However there has to be a reality check and, whilst I concur with some of your observations, a totally Vat exempt charter world is not the way things are ever likely to go nowadays.
Owner charter is a somewhat different subject with limited owner charter being generally accepted. Vat costs on sundries may be a small price to pay to protect the hull Vat which is the main impetus for yacht owners.
If there is only owner charter then there are other factors to be concerned about

]]> Comment on What is the current position with regard to VAT on Italian charter fees? by Bruce Maltwood http://www.sarniayachts.com/blog/current-position-regard-vat-italian-charter-fees/#comment-76 Bruce Maltwood Tue, 25 Oct 2011 16:10:25 +0000 http://www.sarniayachts.com/blog/current-position-regard-vat-italian-charter-fees/#comment-76 Hi Joe What you say is quite correct. If you wish to charter in Italy then you must have paid or accounted for VAT on the yacht and have a fiscal place of business in the EU. Hi Joe
What you say is quite correct.
If you wish to charter in Italy then you must have paid or accounted for VAT on the yacht and have a fiscal place of business in the EU.

]]> Comment on What is the current position with regard to VAT on Italian charter fees? by joe http://www.sarniayachts.com/blog/current-position-regard-vat-italian-charter-fees/#comment-75 joe Tue, 25 Oct 2011 15:54:45 +0000 http://www.sarniayachts.com/blog/current-position-regard-vat-italian-charter-fees/#comment-75 so for the moment is it correct to say non VAT yachts should not charter in itlay and especially not start a charter in italy as the yacht could be subject to VAT on the hull value as well as VAT on any charter fee so for the moment is it correct to say non VAT yachts should not charter in itlay and especially not start a charter in italy as the yacht could be subject to VAT on the hull value as well as VAT on any charter fee

]]> Comment on Why is there concern again over the French Commercial Exemption? by Sam Buheiry, Ocean Drive http://www.sarniayachts.com/blog/concern-french-commercial-exemption/#comment-74 Sam Buheiry, Ocean Drive Tue, 25 Oct 2011 09:09:32 +0000 http://www.sarniayachts.com/blog/concern-french-commercial-exemption/#comment-74 You seem to over-simplify the situation somewhat and there are other considerations which you haven't addressed...mainly the question of Charterer's expenses! I am referring of course to food, alcohol & fuel which all currently benefit from Tax-Free status. This will add an extra 20-21% to most expense bills (or APA) which in today's sensitive Charter Market is a huge concern. I don't think it's quite the "nail in the coffin" scenario either but there are possible wider Ownership implications if Net Charter Income was to drop...affecting Yacht Sales. A fair assessment would be to have a form of reduced flat rate VAT imposed on commercial yachts which on the flip side, can simplify the ownership and management structures & reduce their cost. One major issue we are experiencing today is the "Owner's Use on board". It is becoming a mine field and frankly most Owners don't have the desire to follow the ever-changing scenarios. By making the system simple and especially more transparent, we can increase the flexibility and return to a fundamentally healthier yacht environment. The example of the French Yacht leasing scheme was highly successful and other EU countries adopted it. The reduction in VAT to 9.8% (instead of 19.6%) is offered as an industry average to ALL Yachts, irrelevant of size. The French government authorities recognised that yachts spent on average 50% of their time outside EU waters and therefore were due only half the VAT. Why not find a solution based on this way of thinking. You seem to over-simplify the situation somewhat and there are other considerations which you haven’t addressed…mainly the question of Charterer’s expenses! I am referring of course to food, alcohol & fuel which all currently benefit from Tax-Free status. This will add an extra 20-21% to most expense bills (or APA) which in today’s sensitive Charter Market is a huge concern. I don’t think it’s quite the “nail in the coffin” scenario either but there are possible wider Ownership implications if Net Charter Income was to drop…affecting Yacht Sales.
A fair assessment would be to have a form of reduced flat rate VAT imposed on commercial yachts which on the flip side, can simplify the ownership and management structures & reduce their cost. One major issue we are experiencing today is the “Owner’s Use on board”. It is becoming a mine field and frankly most Owners don’t have the desire to follow the ever-changing scenarios. By making the system simple and especially more transparent, we can increase the flexibility and return to a fundamentally healthier yacht environment.
The example of the French Yacht leasing scheme was highly successful and other EU countries adopted it. The reduction in VAT to 9.8% (instead of 19.6%) is offered as an industry average to ALL Yachts, irrelevant of size. The French government authorities recognised that yachts spent on average 50% of their time outside EU waters and therefore were due only half the VAT. Why not find a solution based on this way of thinking.

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