Please select your home edition
Edition
SailX 728x90

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.
Schaefer 2016 Ratchet Block 660x82North Technology - Southern SparsBarz Optics - San Juan Worlds Best Eyewear

Related Articles

Reducing weight aloft with composite backstays
Reducing weight aloft is one of the most cost effective ways of increasing your boat speed and performance. Reducing weight aloft is one of the most cost effective ways of increasing your boat speed and performance. Every kilogram you take out of the rig is roughly equivalent to 4kg added to the bottom of your keel!
Posted today at 2:13 pm
Free $US3,000 Carbon Vang with SouthernFurl boom orders in July
Southern Spars is giving a free carbon vang - valued at US$3,000 - with SouthernFurl in-boom furlers ordered in July Southern Spars is giving away a free carbon vang - valued at US$3,000 - with all of their SouthernFurl in-boom furlers ordered in July. Carbon gas vangs make a great addition to the furling boom package, though if you’d prefer to keep your existing one, Southern Spars will offer you a 5% discount on the price of your boom instead.
Posted on 29 Jun
Newport Bermuda Race - High Noon takes honours
As the Newport Bermuda Race fleet rushed to the finish line on Monday in the wake of the first-to-finish boat, As the Newport Bermuda Race fleet rushed to the finish line on Monday in the wake of the first-to-finish boat, the powerful 100-foot grand prix Comanche, to the surprise of many they were led by an unusual boat and crew. High Noon, at 41 feet, is fully 59 feet shorter than Comanche and tens of feet shorter than many other entries.
Posted on 22 Jun
Platino recovery - Family confirms that tug has made rendezvous
Reports in social media say a salvage tug has made a rendezvous with the Platino earlier than expected. Reports in social media by family and friends of Nick Saull, the crew member killed during a catastrophic incident abroad the 66ft yacht Platino say the salvage tug which left on Tuesday night has made the rendezvous earlier than expected. The Facebook report says the tug, Sea Pelican, arrived on Friday morning, the weather in the area has eased and with a more favorable outlook.
Posted on 16 Jun
Royal Queensland Yacht Squadron to ban bottled water
Approval has been given to create a ban on bottled water that comes in plastic containers. The RQYS Management Committee has confirmed that approval has been given to create a ban on bottled water that comes in plastic containers. This will place the club as a leader in environmental impact management in Australia and around the world. The Royal Hong Kong Yacht Club earlier this year did likewise. Who’s next?
Posted on 16 Jun
SouthernFurl In-Boom furling systems withstand Sydney Hobart test
Southern Spars design team have developed the SouthernFurl Boom smaller budgets and yachts from 35-70 feet. Have you ever scared your family when you got stuck with too much sail up when you should be reefed? Southern Spars’ range of SouthernFurl booms are the answer – letting you reduce sail quickly and easily without leaving the safety of the cockpit.
Posted on 23 May
2016 Garda Trentino Olympic Week - Day 4
Garda Trentino Olympic Week 2016 draws near to the conclusion: the weather once again proves difficult. Garda Trentino Olympic Week 2016 draws near to the conclusion: the weather once again proves difficult. Tomorrow the medal race is scheduled for the Lasers and another two races for the three paralympic classes.
Posted on 13 May
CCA presents RCC Award to Scott and Mary Flanders
CCA has announced that Scott and Mary Flanders are the recipients of the organization’s 2015 Royal Cruising Club Trophy. The Cruising Club of America (CCA) has announced that Scott and Mary Flanders are the recipients of the organization’s 2015 Royal Cruising Club Trophy.
Posted on 22 Apr
Cyclone Winston Relief Fund – Help the people of Fiji
Sea Mercy is sending volunteer fleet of small and large vessels, loaded with shelter, food and medical supplies to Fiji. Sea Mercy is once again sending our volunteer fleet of small and large vessels, loaded with shelter, food, water and medical supplies and teams to Fiji.
Posted on 27 Feb
Golden Globe Race - 30 sailors from 12 countries named for challenge
Sailors from America, Britain and France head the preliminary entry list for the 2018 Golden Globe solo round the world Sailors from America, Britain and France head the preliminary entry list for the 2018 Golden Globe solo round the world race. The 29 men and one woman – have each paid an initial A$3,000 entry fee. Other entrants hail from Austria, Australia, Brazil, Estonia, India, Ireland, Italy, New Zealand, Norway, Palestine, Russia and Switzerland.
Posted on 18 Feb