When considering the purchase of a yacht, VAT is an important cost to factor into any budget. Once a decision has been taken as to whether the yacht will be used for charter or for private use, BlackStar can assist in reducing the VAT burden. With significant industry contacts, BlackStar can advise on the implications of purchase, ownership, registration, refit and finally the sale of the yacht.

BlackStar can also advise on suitable partner firms to approach, providing independent oversight in the practical implementation of any ownership arrangements

Please follow this link to our Yacht Services brochure for more information.

Yacht Ownership Routes – Key Information

French Exemption:

• Provides for virtually VAT free sailing France
• Requirements are: 1. Permanent Crew; 2. Commercial Registration; 3 Yacht must be under charter
• Exemption subject to EU Commission infractions proceedings and the French authorities have had to amend their VAT legislation as a consequence
• The recent European Court of Justice decision, in what is referred to as Bacino Case (C-116/10), may impact the future operation of the French Exemption for commercial yachts

Matriculation Tax (Spain):

• Tax is 12% of yachts value if applicable and is non-refundable
• Tax is payable when yacht is used in Spanish waters by a Spanish resident, which includes the owning company when chartering into or out of Spain
• Tax is payable when registering on the Spanish Registry
• Broad view is taken on the meaning of ‘resident’

Place of Supply Rules:

• From 2010 VAT on charters will be charged in the country where the yacht is made available
• Applicable to charters of 90 days or less
• New EU Regulations provide clarification on where businesses are established and where charters start and VAT is paid – applicable to all member states from 1st July 2011
• More changes in 2013 will impact on financial yacht leasing

For a pocket guide that gives you more information on VAT and Yacht Ownership Routes including Commercial Charter Company, Yacht Leasing and Temporary Importation, click here.

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