The optimal structure is chosen according to:
Primarily for EU resident owners, Maltese Leasing enables privately operated yachts to take advantage of favourable effective rates of VAT to obtain a VAT-paid yacht. Rates are based on yacht size and for those over 24 metres this equates to VAT of 5.4%.
Update 1 September 2018 - Structure currently under review by the Maltese Authorities, updates to follow.
For commercially operated yachts, the yacht owning company will be VAT registered at at the appropriate jurisdiction and will operate as a commercial enterprise allowing recovery of VAT where applicable.
These rules apply to non-EU resident owners who wish to use their yacht privately in the EU. Use is limited to 18 months after which the yacht must be removed from the EU before re-entering under the same rules.
French (FCE) & Italian (ICE) Commercial Exemption
There are a number of criteria that must be met for FCE/ICE. Read our latest articles to learn more.
Yacht Engaged in Trade (YET)
For non-EU resident owners that wish to undertake a mixture of private and commercial operation within the EU, the YET scheme enables 84 days charter use per annum in addition to the private use of the yacht. The area of charter use is however restricted.
VAT structures are complex and there are many factors to consider. Sarnia will work alongside your existing yacht broker or financial management teams, bringing our team’s experience to get the job done.
Sarnia will consider many different factors before recommending the ideal VAT structure for a client: