Moore Stephens from the Isle of Man have produced a Yachting VAT Note which will ring along bells amongst boat owners throughout Europe.
They identify this year as the time when “the pincers finally closed around yachting activity in the inland waters of the Mediterranean.”
They identify many existing issues, such as Spain’s Matriculation Tax and the new yacht ownership regime in Italy but also look at new threats, such as the row between the EU and France over charters, new toughened yachts taxes in Greece and the effects of Croatia’s entry into the EU on VAT free sailing in Europe.
The article looks too at the other changes in VAT in Europe as from January 1st 2013 suppliers of boat leasing services must charge the rate of VAT where the customer lives rather than where the vessel is based.
The final blow to the beleaguered boaters is the intractable Gelengenbestaigung, the new intra-EU certification process for proving the delivery of goods from Germany to other EU members states.
Their conclusion? “yachts will probably need to play within the system as opposed to outside it.”
However there is a chink of light in the darkness – several areas of the EU, such as Gibraltar, are members of the EU but not of the Customs Union. This allows VAT free sailing by non-EU nationals and even VAT free boat sales can be utilised by then applying for a Special Importation License into the EU which allows VAT free sailing within the EU for 18 months.
You can download the full article here : http://im.moorestephens.com/YachtingVATNotes.aspx
For more information on VAT free sailing in Gibraltar please contact : email@example.com