Can I charter my superyacht if I am in the EU under the Temporary Importation Regime (TIR)? • No. The TIR is a relief, that lasts for 18 months and is renewable, from import VAT based on you neither chartering or offering to charter, selling or offering to sell your superyacht within the EU. TIR is only available to a non-EU flagged superyacht, owned by non-EU residents. Post Brexit British residents with non-EU flagged superyachts can avail themselves of TIR. • You should not allow EU residents to use the superyacht if you are not on board. If you breach any of these conditions, the relief is removed and VAT on the importation of the superyacht is immediately chargeable, together with possible penalties and interest calculated from the date of the original importation. TIR for helicopters on board a superyacht is only six months.
respect the sanctity of the corporate veil. They look at who directly or indirectly owns the company and draw their own conclusions. Even a tax paid superyacht if sold in the middle of a charter or as a chartering business can compromise the VAT paid status.
superyacht infrequently, you may be asked to de-register as a commercial yacht. At this point you would become liable for VAT on the hull unless you permanently export the superyacht or become eligible for VAT relief as a non-resident. Also, an EU tax paid superyacht sold outside the EU will lose its VAT paid status if brought back into the EU by a new owner. The only certainty in tax and superyachts is that there is no certainty. Those who have a VAT accounted for or VAT paid superyacht where the superyacht has previously been to the UK, the British tax authorities say that if you are looking to return to the UK and claim Return Goods Relief (RGR) you must do so before 31st December 2021 or you will have to pay VAT again on your return to the UK. However, if the superyacht has never been to the UK and paid or accounted for VAT whilst outside the UK, RGR will not be available, even if it comes back to the UK before the end of 2021. In those circumstances you will have to avoid the UK, and possibly Gibraltar, and stay in the EU where your VAT status will be preserved. If you paid VAT in the UK and sell the yacht in the UK, you will lose EU VAT paid status.
The industry’s tax practices are under increasing scrutiny (from governments and journalists alike) worldwide.
Does the flag have anything to do with tax?
• The flag only has an impact on tax if you are applying for TIR (Temporary Importation Relief) where you have to have a non-EU flag. Usually, tax is determined by how the superyacht is used as opposed to the superyacht’s flag. However, anecdotal evidence suggests that non-EU flags are having a tough time operating legally in some parts of Spain and Greece. Non-EU flagged vessels would, like EU-flagged vessels, need to establish a branch in Greece, thus potentially onshoring the activities of an offshore entity. To operate out of Greece requires a Greek charter licence, which means setting up a branch in Greece, appointing a Greek tax representative, and facing the risk of a luxury tax being imposed if less than 75 days’ chartering is undertaken during a three year period.
Can I charter the superyacht to myself?
Occasionally this is possible, but only if you pay an arm’s length commercial charter rate. However, if you are the only or principal charterer, the superyacht is not commercial. As an aside, chartering through a series of dummy companies does not count as arm’s length chartering or pursuing commercial business. The tax authorities do not always
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