EU VAT
The principal structure for an individual yacht which will be used in EU waters will depend on the VAT status of the yacht, the residency of the beneficial owner and purpose for which the yacht will be used.
Amendments to the European Union (EU) Sixth Directive on Value Added Tax (VAT) came into force on 1st January 1993. The amendments require that all yachts which are in any way owned or used by an EU resident in EU waters must have proof of VAT exemption or pay VAT.
VAT Structures provided by Sarnia Yachts
There are a number of considerations that are applicable when looking at EU VAT such as:
- Do clients require a full structure or do they already have a company to act as owner?
- Nationality of owner?
- Residency of owner?
- What is the current VAT status of the yacht (Non-VAT paid (TA), VAT Paid, VAT mitigated/deferred, or exempt)?
- Has the yacht been formally imported into the EU?
- Geographical area and specific countries of use?
- New yacht or second-hand?
- Current flag/port of registry of yacht?
- Private pleasure or charter use?
- Is the yacht MCA compliant?
- Length of yacht?
- Tonnage of yacht?
- Where will the yacht be lying at the time of purchase?
- Current value of yacht?
Please see articles below for further information…..
