VAT on yachts is a broad subject and each EU country has subtle differences in how VAT is looked upon although the treatment should be the same throughout the EU.

Vat yacht france. French Customs officials have informed a visiting cruiser that France does not permit the 18 month period of Temporary Importation TI to be extended. Brexit and the VAT status of yachts into 2021. However sadly not all are so diligent which can lead to.

VAT AND INTRA COMMUNITY TRADE VAT THE REFORM OF DISTANCE SELLING. VAT on yachts can add a hefty amount to. Upcoming changes on VAT treatment of French yacht charters in 2021.

The rules are different for non-EU residents who are permitted to use private yachts in the Mediterranean under Temporary Admission for up to 18 months without being liable to pay VAT on the hull. One of the many reasons why a buyer might consider engaging the services of a broker as well. Evidence could by way of a receipted invoice or VAT certificate.

TI allows non-EU boats with a non-EU resident to remain in the European Territory without paying VAT or import duty for a period of 18 months before they must either leave or be officially. For yachts built after 1 January 1985 the VAT should have been paid by the initial purchaser or importer. Alternatively a commercial yacht that is registered offshore and owned is exempted from VAT providing the vessel has been imported in accordance with the applicable regulations.

VAT on charter rules remained unchanged. We trust this note finds you well and hopefully not affected by the strains brought upon us by the challenges of 2020 not the least of which is the spectre of Brexit which looms large particularly in respect of the VAT status of boats. The French Tax Authorities surprised the whole yachting industry in France by publishing a new tax bulletin last Friday with retroactive effect from 1 November which affects the way VAT on short and long term chartersleases is calculated.

2 One should undertake robust pre-purchase tax due diligence on any yacht but particularly if the yacht is marketed as VAT paid. A day of reckoning has loomed ever since the French legislator introduced a VAT exemption regime that included all yachts in commercial use in May 2004. For more detailed information you can consult our articles on our website entitled.