Please select your home edition
Edition
Marine Resource 2016

The complex issue of VAT and yachts - a solution offered

by Lee Mylchreest on 10 Aug 2013
VAT on yachts in the Med, a vexed question .. .
The changing situation of VAT in Europe and adjacent countries has made it difficult for yacht owners to make decisions about where to keep their yachts and how to use them as prudently as possible - particularly if that yacht is a sizable investment.

The combination of two names in the tax-free haven world - Isle of Man and Monaco - have come together with a solution. This is the offer, in the words of Isle of Man based Dominion Marine, who have been providing robust yacht and superyacht ownership solutions since 1984.

We closely monitor changes to VAT and marine legislation to make sure we are providing the best and most cost-effective ownership structures for our clients.

Due to new VAT legislation, the ratification of the Maritime Labour Convention (MLC) and stricter requirements for commercial registration, we have developed a new and unique VAT deferment structure. This is delivered by Dominion Marine SARL, incorporated and VAT registered in the Principality of Monaco.

How does this new solution work?
Under this new rental structure, owners defer the payment of VAT on the acquisition of the yacht, and only pay VAT on its depreciation (in accordance with European Court judgements).

The structure is ideal for pleasure yacht ownership and is based on a 5 year bare boat rental contract. The client can choose to pay VAT either:

1. at the applicable rate on the hire fee (currently 9.8%), or
2. on the hire fee at the full rate of 19.6% and zero rate the VAT for periods outside EU waters.

At the end of the 5 year contract the client has the option to enter into a new rental period, based on the residual value of the yacht at that time. Should the client decide to sell the yacht, there are no penalties and all options relating to the tax on the yacht remain open.

As a bare boat rental, all expenses relating to the running of the yacht are the responsibility of the renter, along with crew recruitment and interior decoration.

For more information, go to the newly set up www.dominionmonaco.com!Dominion_Marine_SARL.
Abell Point Marina 660x82 MoorFestival of Sails 2017 660x82Wildwind 2016 660x82

Related Articles

Fifth Blog from on board Perie Banou II
Jon Sanders is closing in on Reunion and Mauritius The west coast of Australia is now a long way behind. Then it was 3 reefs in the mainsail. Windy. A wind one gets in the region - history shows it has been the same over the past 400 years - Southerlies. Soon the wind bends. And we get the South East trades proper. For the first 1,000 Nautical Miles the Trades were what I expected. Very strong southerlies leaving the Australian shore (Shark Bay).
Posted on 2 Dec
Predictwind release improved racing and cruising routing function
PredictWind has released a major upgrade to its Routing function, taking a much more graphic and interactive approach PredictWind has released a major upgrade to its Routing function, taking a much more graphic and interactive approach to what has been a black art of weather routing, used to chose the fastest route for racers or most comfortable route for cruisers.
Posted on 28 Nov
Only room for one at the top
The results of RMIT's (Royal Melbourne Institute of Technology) independent testing are in. The results of RMIT's (Royal Melbourne Institute of Technology) independent testing are in. Zhik® is the market leader in waterproof durability with a new standard that replicates the real world sailing environment and conditions. It is an astounding four times more so than the previous leader.
Posted on 28 Nov
Beneteau Cup – A statement in family and time
Every other deity with a nautical interest seemed to sense the importance of the occasion and delivered in spades Flagstaff Marine delivered a terrific regatta to mark the 25th Beneteau Cup on Sydney Harbour. It seemed fitting that Beneteau had two factory representatives there as well, headed up by Director, Beneteau Group Asia Pacific, Thibaut de Montvalon and also Asia Sales Manager, Beneteau Group Asia, Vianney Guezenec.
Posted on 28 Nov
Parlier reigns supreme in Hydrofoil Worlds
The south westerly breeze kicks over the land mass over north facing beach, making for flat water despite strong wind. Whatever the shortcomings of the Fremantle Doctor on the first day of competition, were made up for in spades on day two, when the wind kicked in early at 15 knots and quickly built to 18 with gusts as high as 26. The Rockingham course is perfectly suited to such conditions. The south westerly breeze kicks over the land mass over the north facing beach, making for flat water despite strong wind.
Posted on 27 Nov
25th Beneteau Cup - Great weather. Great times. Great brand.
The 25th Beneteau Cup on Sydney Harbour was filled with a genuine sense of joy. The 25th Beneteau Cup on Sydney Harbour was filled with a genuine sense of joy. Flagstaff Marine, together with regatta partners Sydney City Marine, Mark Anderson’s Boat Transport and d’Albora Marinas, can be very proud of the achievement, but it is the owners and crews who make it all possible. Here then are some of the pics of their day! Full report to follow…
Posted on 26 Nov
Ensign want to sell your boat!
Ensign have had such a successful sales year that they are now looking for more pre-used stock to sell. Ensign, one of Australia’s largest yacht brokers, have had such a successful sales year that they are now looking for more pre-used stock to sell. At their head office location at Main Beach, Queensland, they can offer amazing rates on berthing while the boat is on sale at their Marinas Cove Marina and that means great exposure.
Posted on 24 Nov
Fourth Blog from on board Perie Banou II
Oh no - not the coffee cup Oh no - not the coffee cup - Jon keeps us all entertained as he approaches Reunion Island. The B&G chartplotter tells me since leaving the pleasant mid Western Australian town of Carnarvon (by world standards, an isolated town), that I have sailed some 2559 NM and have 751nm to go to Le Port Reunion Island. French. Reunion is a Suburb (department) of Paris. Population 844,000.
Posted on 23 Nov
Third Blog from onboard Perie Banou II
Wind over the last week has been quiet and mild - Trade Winds from South East and South South East. It is 0830am here. 1030 in Western Australia. Windy. Rather Windy. Wind over the last week has been quiet and mild - Trade Winds from South East and South South East. Barometer 1018 to 1020 whatever they are. Last night I tapped the barometer and it sorta went oops. 1015hPa. Blimey.
Posted on 18 Nov
Beneteau Cup - the 25th is the 25th
Beneteau Cup - the 25th is the 25th Flagstaff Marine will present the 25th Beneteau Cup on Friday, November 25. It is always a great day, both on and off the water, with loads of door prizes, great music and fantastic times assured. Of course, to be a part of it you do have to book in! You can enter this historic event right https://www.topyacht.com.au/db/aus/series_select.php?EventID=681!HERE!new and now - so hop to it...
Posted on 15 Nov