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Readers’ forum: Is there VAT on improvements to luxury yacht?

10 February 2025
Issue: 4972 / Categories: Forum & Feedback , VAT
Sailing the seven seas

One of my clients carries out interior furnishing work to luxury yachts owned by wealthy individuals. Most of his work is for UK owners and he charges 20% VAT on all of his services both for the design work and subsequent fitting of fixtures fittings and equipment. He has been asked to do some work on a luxury yacht that is moored in France. He will travel to France to carry out the work buying all of the goods from a supplier in the Netherlands.

The yacht is owned by a company registered in the Cayman Islands – I am not sure if this is significant? According to the yacht owner there is no business income generated from the yacht from hirings or other sources.

My client has quoted 20% UK VAT on his estimate but the client says that is wrong and the services should...

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