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My new boat in EU, which flag? VAT reduced?

Discussion in 'General Yachting Discussion' started by rnolan, Jun 13, 2007.

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  1. rnolan, Jun 13, 2007
    #1
    rnolan

    rnolan New Member

    Joined:
    Jun 13, 2007
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    Location:
    Barcelona
    I came back in Europe and I have a lot of question before buying my boat. I want to cruise in the EU mediterrannean water (Ibiza, french riviera), and also Croatia, Malta...
    I have heard about the Malta Flag, Isle of Wight and so forth. What is a commercial yacht (if such a thing could exist)?
    I suppose extreme care should be taken before doing anything.
  2. RVN-BR, Jun 13, 2007
    #2
    RVN-BR

    RVN-BR Senior Member

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    Location:
    South Florida & Mediterranean
    I don't know if a commercial yacht exists as a definition... If anything I would guess that is a Charter Yacht, as opposed to a Private Yacht (of course, a charter yacht could be used for private use, but a private yacht can't be used for charter legally). The charter licenses are usually more expensive and have stricter requirements to deal with safety and such...
  3. rnolan, Jun 13, 2007
    #3
    rnolan

    rnolan New Member

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    Jun 13, 2007
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    Location:
    Barcelona
    Continuing my search over the net!

    Thanks Roy!
    I have heard about this "commercial yacht" category exist in France or in Italy. Theese yachts seem to be considered as merchant vessel (no vat?) if they follow some regulations.
  4. MacMcL, Jun 14, 2007
    #4
    MacMcL

    MacMcL Senior Member

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    Jul 20, 2005
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    Location:
    Dania Beach
    Many of the countries with flags of convenience distinguish between commercial and pleasure classification in the registration of the vessel. It is my understanding that a commerically registered vessel is VAT exempt on fuel and certain provisions in the EU. However, there are more stringent inspection and safety requirements to contend with. The Marshall Islands allow a vessel to be non-commerical but accept up to 12 weeks of charter per year.

    One of the real issues is what is your intened use of the vessel? Secondly does the vessel have ABS, MCA, or Lloyds classification? This should be what guides your choice of a flag. The VAT loop holes in bringing a boat into the EU exist regardless of the EU flag.
  5. Crewagency, Jun 15, 2007
    #5
    Crewagency

    Crewagency Guest

    Yacht registration

    Have a look at www.registerayacht.com

    I worked together with them in the past and they will find a solution.

    The right choose depends also on the home berth in case we have different
    regulations in every land in the EU. Spain for example asked for a Spanish Charter Licence ( 12 % of the Yacht price ) In other countrys you have to sail
    out of the EU every 182 days etc. So you will need professional assistance to find the right flag.