MARTYN FIDDLER TAX Customs, VAT & Yachts Adrian Jones Tax Director 31st May 2017 MARTYN FIDDLER TAX

Martyn Fiddler Tax Customs, VAT & Yachts

How many EU countries have no coastline? MARTYN FIDDLER TAX

How many EU countries have no coastline? Luxembourg; Hungary; Austria; Czech Republic; Slovak Republic.

Lots of maritime law/rules: Insurance Class Flag Port State MLC VAT NI/Social Security Corporation Tax

How to bring your yacht to the EU? Temporary Admission: Not in free circulation, not VAT paid Import Pay VAT Pay and reclaim, VAT registration (Isle of Man, Malta)

VAT and Insurance Companies Insurance companies do not charge VAT Insurance Companies do not claim back VAT What if insurance companies have to repair or sell a yacht?

Repair Work

Repair Work Place of supply, where work to be carried out TA yacht – a yacht can enter for works under IPR Specific Relief Yacht must leave the EU on completion VAT Registration – use registration to make the repair VAT efficient Private VAT paid yacht – VAT must be paid in the EU

Sale by insurance company What if yacht becomes property of an insurance company? Acquisition by insurance company is not a sale/purchase. Insurance company cannot recover VAT, but what about sale? Yacht is not VAT free commercial sale – probably cannot charter. VAT should be charged on sale of scrap/parts Possible “private sale” exemption if yacht acquired by way of insurance claim – check locally.

MARTYN FIDDLER TAX Adrian Jones Tax Director Adrian@martynfiddler.aero