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Old 27-08-2014, 01:57   #1
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Advantages of a Used Motor Yacht with European VAT Paid

I am considering several motor yachts in the 30 m + size and most appear to be non VAT. However, a couple say VAT paid & European flagged. My question relates to the advantages of buying a used vessel for which VAT has been paid and using it for charter & private usage. Is the main benefit the ability to leave the vessel based in an EU location? I have duel Australian & UK passports, so does it help for visa free travel and duration in the Schengen area? Can I change registry to say Marshall Islands without spoiling any current advantage? The vessel of most interest in UK registered & paid.

I assume it means the vessel & crew can operate charters in EU waters under the current arrangement, so long as VAT is paid on charter bookings & remitted to the appropriate national tax authorities. If that is the case, are my fuel, supplies & running VAT costs whilst on charter able to be claimed back as operating expenses against the VAT collected on the charters?

I understand that if I was purchasing a new boat that the VAT could be claimed but I am only contemplating a used vessel.


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Old 27-08-2014, 02:08   #2
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Re: Advantages of a used motor yacht with European VAT paid

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Originally Posted by deansy View Post
I am considering several motor yachts in the 30 m + size and most appear to be non VAT. However, a couple say VAT paid & European flagged. My question relates to the advantages of buying a used vessel for which VAT has been paid and using it for charter & private usage. Is the main benefit the ability to leave the vessel based in an EU location? I have duel Australian & UK passports, so does it help for visa free travel and duration in the Schengen area? Can I change registry to say Marshall Islands without spoiling any current advantage? The vessel of most interest in UK registered & paid.

I assume it means the vessel & crew can operate charters in EU waters under the current arrangement, so long as VAT is paid on charter bookings & remitted to the appropriate national tax authorities. If that is the case, are my fuel, supplies & running VAT costs whilst on charter able to be claimed back as operating expenses against the VAT collected on the charters?

I understand that if I was purchasing a new boat that the VAT could be claimed but I am only contemplating a used vessel.


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I think you have to stay registered in the EU country. If you change it, then VAT advantages cease and VAT will have to be paid again if you decide to re register it as British.
Others here have more up to date information.

addendum: Britain is NOT part of the Schengen agreement.
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Old 27-08-2014, 02:14   #3
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Advantages of a used motor yacht with European VAT paid

Most charter yachts are VAT unpaid so I doubt VAT paid would Benefit you.
The advantage of VAT unpaid is the price should be 20% less than a VAT paid yacht of the same model,age, specification. Chartering is country specific so you would need to check the laws for the region you intend to charter. VAT unpaid will mean you have to remove it from the EU every 18 months, possibly every 6 months on a used boat.

Weavis, once VAT is paid so long as a receipt is kept, it should never be required to be paid again.
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Old 27-08-2014, 16:45   #4
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Re: Advantages of a used motor yacht with European VAT paid

Quote:
Originally Posted by deansy View Post
I am considering several motor yachts in the 30 m + size and most appear to be non VAT. However, a couple say VAT paid & European flagged. My question relates to the advantages of buying a used vessel for which VAT has been paid and using it for charter & private usage. Is the main benefit the ability to leave the vessel based in an EU location? I have duel Australian & UK passports, so does it help for visa free travel and duration in the Schengen area? Can I change registry to say Marshall Islands without spoiling any current advantage? The vessel of most interest in UK registered & paid.

I assume it means the vessel & crew can operate charters in EU waters under the current arrangement, so long as VAT is paid on charter bookings & remitted to the appropriate national tax authorities. If that is the case, are my fuel, supplies & running VAT costs whilst on charter able to be claimed back as operating expenses against the VAT collected on the charters?

I understand that if I was purchasing a new boat that the VAT could be claimed but I am only contemplating a used vessel.


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On a 2nd hand boat vat is somewhat academic, since the value is the value of a 2nd hand boat.

There is no specific advantage in relation to business or visas, but you can leave the vessel in the EU indefinitely.

Re-registering will not effect vat status., but can make you case harder to prove if challenged

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Old 27-08-2014, 16:47   #5
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Advantages of a used motor yacht with European VAT paid

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Originally Posted by monte View Post
Most charter yachts are VAT unpaid so I doubt VAT paid would Benefit you.
The advantage of VAT unpaid is the price should be 20% less than a VAT paid yacht of the same model,age, specification. Chartering is country specific so you would need to check the laws for the region you intend to charter. VAT unpaid will mean you have to remove it from the EU every 18 months, possibly every 6 months on a used boat.

Weavis, once VAT is paid so long as a receipt is kept, it should never be required to be paid again.

2nd hand boats do not proportionally reduce by the original vat amount. The value is the market value.

Having a 2nd hand boat for chartering is just that vat is irrelevant

Vat is a transaction tax, there are several scenarios where vat can be due , potentially many times

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Old 28-08-2014, 01:38   #6
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Re: Advantages of a Used Motor Yacht with European VAT Paid

It may be academic, but in real world rices, the guy that buys a yacht for 200k can afford to sell it for 40k less than the one with VAT paid and make the same loss. Definitely worth considering if VAT paid is not required (ie for exporting)
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