We cover these key points:
✓ 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