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Tax relief for non-EU yachts

Evolution Yacht Agents explains how non-EU yachts can gain 21% tax relief under TPA while moored in Spain…

The lure of the Mediterranean and beauty of the Spanish marinas has long attracted voyagers from far and wide situating itself as a popular yachting destination. A mild climate offering year-round sun-drenched days makes Spain a strategic location for visiting superyachts. However, even after savouring the richness of a Gran Reserva Rioja or trying a bite of the typical Valencian paella, Spanish taxes on VAT can leave behind a sour taste. 

TPAs (aka Inward Processing) is a fiscal processing that allows non-EU yachts (and others) to undergo refits and repairs when moored in Spanish shipyards. Yachts under TPA’s enjoy a 21% tax relief on VAT charges on all repairs and maintenance works, including spares and berth occupancy, which extends to invoices from countries registered outside of Spain. Evolution Yacht Agents act as Customs Agent to ensure compliance with Spanish fiscal and Customs requirements. Drawing on their extensive experience of successfully managing over 400 TPA’s, Evolution ensures all legal customs and port authority requirements are met. Additionally, an in-house registered Customs Broker is on hand as part of Evolution’s commitment to assist with no intermediaries.

During a yacht’s refit Evolution’s dedicated team will assist in the entire clearance and Customs procedure with reference to management and accountability. The Temporary Importation for non-EU registered yachts opens when the vessel is in port. Evolution ensures that the deposits required for the refit will be exempt from VAT (21%) by preparing the refit in advance. Spare parts related to the TPA can also become exempt to Custom import tax and VAT by bonding them to the regime. Moreover, Evolution boasts of having the first bonded warehouse (2500m²) in the Balearics as well as a 1500m² warehouse in Palma De Mallorca. The warehouses are tax free zones and therefore may store merchandise from outside the EU without paying import taxes. Customs must be notified should the owner wish to change berths, carry out sea trials or declare parts destined to be moved, disposed of or sold.

TPA’s allow non-EU yachts a Temporary Import period of 18 months before they must be closed. Thankfully, yachts under TPA’s no longer have to leave the EU in order to close a TPA. A year has passed since a change to the EU’s ‘Union Customs Code’ (UCC) allowed non-EU vessels to close the TPA restarting the 18 months applied without the hassle (or expenses) of having to leave and re-enter the EU. Today, yachts under TPA’s may simply visit any other transit port or sail off-shore exceeding the distance of 12 nautical miles to renew their TPA. In the case of opening and closing a TPA within a transit port, this must be inside the Customs area. Evolution Yacht Agents can open and manage Inward Processing in any of the qualified Spanish ports, which include those in Palma, Barcelona, Tarragona, Valencia, Vilanova, to name just a few.

Evolution Yacht Agents have created an informative video that explains how to access the benefits the TPA provides and the services they offer to ensure it adheres to Spanish Custom's regulations. 

 

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The Evolution of TPA Regulations for Yachts Moored in Spain’s Shipyards

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User photoMichael Groves - 24 Sep 2022 13:09

Can I have air con etc installed on my UK yacht and Claim

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User photoMichael Groves - 28 Sep 2022 11:34

Looks like my first post got clipped, maybe user error, but looks like you got the jist.
To clarify, I could either visit a spanish marina with TPA paperwork, and they would complete the work tax free, or I would import goods from UK, which would then be tax exempt as being exported. Is this correct?
What is a DUA ?

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User photoSimone Bateson - 28 Sep 2022 09:16

Hello, yes it is possible either on a TPA programme or exporting directly the goods to the boat with a DUA which must be done prior to departure. Evolution Yacht Agents can deal these services.

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