VAT planning

VAT is a complex and highly specialised area. We work closely with qualified VAT planning specialists based in the City.

Generally if the vessel is to be operated in EU waters, VAT may need to be paid and a “VAT paid” certificate must be kept on board.

There are a number of situations where VAT is recoverable or where VAT payment may be deferred and this will often depend on whether the vessel will be used for commercial or private purposes. Of equal importance is the location of the port within the EU to which the vessel is first delivered upon completion since the VAT will be payable in the country where the delivery takes place and rates of VAT can differ considerably from one jurisdiction to another.

We offer a number of arrangements to mitigate or defer payment of VAT, each advised upon and backed by internationally renowned tax advisory practices.

We can also assist residents of non‑EU countries on the completion of temporary importation procedures that can allow the vessel to be operated within EU waters for a maximum period of 18 months at a time without payment of VAT. 

Given the complexity of this specialist area, the earlier in the build process we begin discussions the better since even the selection of a delivery point on completion may affect a client’s VAT liability significantly.