Yachts and the EU
If a yacht operates in EU waters Value Added Tax (VAT) must be considered. These considerations can also impinge on the choice of Flag State, the yacht’s ownership structure and the place of ownership.
The EU’s Sixth Directive on Value Added Tax was amended in 1993. This amendment states that all yachts which are owned or used by an EU resident in EU waters must pay VAT or have proof of VAT exemption. Failure to comply with EU regulations can have serious consequences for a yacht and its owners – this can include detention or seizure of the yacht, or severe financial penalties.
It is therefore vital that the yacht complies with all regulations and has appropriate ownership structures in place.
We have considerable experience in the importation of yachts and the formation and management of appropriate corporate structures.