Superyachts could qualify for VAT exemption in Madeira

Following January’s EU ruling, which brought into question the legality of the French Commercial Exemption, the Madeira Ship Registry (MAR) has ruled in favour of national tax autonomy.

MAR has confirmed that yachts available for charter, and capable of carrying 10 or more guests, will be classified as small commercial vessels on the registry. This ruling complies with the recent EU Directive for VAT/TVA exoneration rules.

MAR and the Portuguese Maritime Classification Authority (RINAVE) met recently with the flag registration specialist Transboat France and management company, Boatrust Madeira. Following the meeting, Transboat confirmed that it will now offer its clients the option of registering their vessels on the MAR Commercial Vessel Register. The client’s yacht will then be subjected to rigorous testing to ensure that it conforms to MAR-RINAVE regulations for commercial navigation and high sea voyages.

David Goddard of Transboat said:

“Large yachts can now apply for SOLAS compliant registration, with possible concessions such as Large Yacht Concession (LYC) rules. The opportunity to register under the Madeira flag has been very appealing, and has already led to (the 78m) Delphine signing up.

“Any yacht joining MAR will benefit from Madeira’s many tax advantages, whilst also benefiting from EU company rules and auditing processes. Madeira has exceptionally low tax rates anyway and its registry has, for many years, operated both efficiently and successfully.

“Even crewmembers on commercial yachts enjoy Madeira’s tax benefits. No matter where they live, if their vessel is MAR registered, they are exempt from personal income tax under Article 33.8 of the Tax Incentive Statute.”  

WM

Related Links

Madeira Ship Registry Website

Transboat France Website

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