The guide to Superyacht law - Fourth edition

Q&As If you are building a superyacht in the EU, be aware of not becoming involved in a

tax-avoidance artificial exporting structure. Can I avoid VAT on buying my superyacht?

• If you are an EU resident, you may be able to recover any VAT you are charged if you are legitimately operating the superyacht commercially in the EU, or you may be able to participate in a legitimate leasing structure Cyprus and Malta run broadly similar leasing schemes which can dramatically reduce the effective rate of VAT on the assumption that superyachts do not spend all their time inside the EU However, both the German and UK tax authorities have openly criticised these schemes and so they are a potential risk for owners living there Is the VAT status on my superyacht preserved for life? • No. If at some point in the future it becomes clear that you are not pursuing legitimate commercial business or you are only chartering the superyacht infrequently, you may be asked to de-register as a commercial superyacht. 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

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