YOU CAN BE ASSURED OF EVERY DETAIL COVERED
Key Points of the Solution
You can be assured that every detail will be covered. This solution is especially good for yachts that wish to return to private use only, and yachts under temporary admission.
✓ Fully compliant with current Tax & VAT Regulations
✓ Under “use and enjoyment” rules, VAT is paid on the rental amounts
✓ VAT is paid on the agreed rental amounts during the period of hire
✓ The entire concept is based on a five-year bareboat rental
✓ Very flexible, the renter can exit the rental engagement at any time with no penalties at all; at which point ABC sells the yacht back to the lender in international waters at the then written-down value. The lender is then free to do what it wishes with its yacht: onward sale/export/go commercial/pay the VAT, whatever.
✓ At the exit, all options as to future ownership and VAT arrangements stay open. An onward outright sale; export the yacht outside of the EU; convert it to commercial engagement; pay the applicable VAT anywhere within the EU.
✓ This solution is good for yachts wishing to go back to private use only and yachts under temporary admission
ILLUSTRATION FOR A €30MILLION YACHT
Monaco VAT Deferment Solution
€
Cost of yacht
30,000,000
Value in 5 years assuming 4% pa depreciation
24,000,000
Annual rent
1,200,000
VAT payable thereon at 20%
240,000
Set up costs – own SARL
50,000
Annual fees
60,000
Importation via Italy
10,000
All legal fees for both parties paid by the client
NOTE: VAT if paid in full at the mean EU rate of 20%
6,000,000
VAT is payable at the full rate of 20% when in the EU, and 0% when out. This is the maximum payable
Total costs year 1
360,000
Costs year 2
300,000
Costs year 3
300,000
Costs year 4
300,000
Costs year 5
300,000
Total costs over 5 years
1,560,000
VAT saving
4,440,000
WE HAVE THE SOLUTIONS
Have questions about VAT deferments for your super yacht? We’re happy to answer all of your queries!
WE HAVE THE SOLUTIONS
Have questions about VAT deferments for your super yacht? We’re happy to answer all of your queries!