VAT generally applies to charters starting in EU waters, but exemptions or reductions may be available depending on your yacht’s registration, operational profile, and time spent outside EU waters during charters. Options such as the French or Italian Commercial Exemption and pro-rata reductions can lower VAT liability if specific conditions are met. Each EU country applies its own rules, so correct structuring and documentation are essential to benefit from available reductions.
No, yachts under Temporary Admission (TA) cannot be used for charter within the EU. TA allows non-EU, pleasure-registered yachts to enter EU waters temporarily without paying VAT or customs duties, but only for private use by the owner or their guests. Chartering under TA is not permitted and would breach EU customs regulations. If you wish to charter within the EU, a different importation or VAT structure will be required.
The Yacht Engaged in Trade (YET) scheme allows non-EU flagged yachts to operate charters in France and Monaco under strict conditions while under Temporary Admission (TA). It requires commercial compliance, safety certification, and local fiscal representation, enabling the yacht to charter legally without full importation. However, the scheme has limitations and must be carefully assessed before operation.
Temporary Admission (TA) allows non-EU, pleasure-registered yachts to enter EU waters for a limited time without paying VAT or customs duties, but charter operations are not permitted under TA. Full importation involves paying VAT and customs duties where applicable, allowing the yacht to remain in the EU without time limits and to be used for charter if commercially registered.
An Economic Operators Registration and Identification (EORI) number is required for businesses undertaking customs activities within the EU, including yacht importation or exportation. If your owning company will import a yacht or manage customs procedures, obtaining an EORI number is essential for compliance.
Yes, VAT is generally due on importation, but commercial registration may allow recovery of VAT paid, depending on the structure and use of the yacht within the EU. Structuring your ownership and operations correctly is critical to manage VAT efficiently.
Yes, if your yacht is commercially registered and operating under a structure that allows VAT recovery, it is often possible to offset VAT on qualifying purchases and operational expenses. This requires the correct VAT registration, accounting procedures, and evidence that the yacht is used for genuine commercial activity, such as chartering within the EU.
No, private (pleasure-registered) vessels cannot generally avoid VAT on refit or repair works carried out within the EU. However, under specific conditions, commercially registered vessels or those under Inward Processing Relief (Perfectionnement Actif) may be eligible for relief from VAT and customs duties during refit or repair periods. Careful structuring and pre-approval are essential to benefit from this relief.
Yes, VAT is generally due on the purchase of a yacht within the EU unless the transaction qualifies for a specific exemption, such as a commercial structure or an intra-community supply between VAT-registered entities. The structure of the purchase and the intended use of the yacht will determine the VAT treatment.
Under TA, a non-EU yacht can remain in EU waters for up to 18 months continuously before needing to leave EU waters briefly to reset the period. Some local variations and customs practices may affect this timeline, requiring careful navigation planning to remain compliant.
Commercially registered yachts operating under a compliant structure within the EU may be eligible for VAT exemption or refund on fuel and certain provisions used during charter operations, provided the correct procedures and documentation are followed. Private yachts are not eligible for these exemptions.
Yes, some EU countries allow pro-rata VAT reductions on charters for time spent outside EU territorial waters during the charter. Correct tracking of your yacht’s position and meticulous record-keeping are required to benefit from these reductions while remaining compliant.
In many cases, non-EU owning companies need a fiscal representative in the EU for VAT registration, reporting, and compliance, particularly if the yacht will engage in commercial activities or charters within EU waters.
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