Not plain sailing?

EARNING ENOUGH MONEY  to buy a yacht is the difficult part isn't it? Surely after that it's all plain sailing? Well if you cruise outside EU waters that is likely to be true. Unfortunately if the reality is that you would prefer to sail closer to home in the Mediterranean for example you might get a bit queasy when you start to consider the VAT issues and the questions that yacht-owning and potential yacht-owning clients might ask.

VAT on yachts?

The basic rule is that all private yachts owned or used by EU residents must be VAT-paid if they are to be used in EU waters. If you thought that there was no VAT on boats you would be partly right but in order to avoid VAT the boat must be a 'qualifying ship'.

A qualifying ship is 'any...