Can a Yacht in Transit avoid paying VAT?
A yachtsman is exempt from paying VAT in the following circumstances: • Where a business supplies a good or product and uses this good or product to carry out repairs both the labour charge and the product supplied can be VAT-free. Conversely, if a party other than the one conducting the repairs supplies the product then the VAT must be charged to the Customer. • The goods are imported directly to the vessel and consigned as Yacht-in-Transit. The Captain/Owner of the yacht must be present to clear the goods. • The vendor prepares an export document known as a shipping bill, which must be presented at the time of departure from the country. Once cleared out the goods are physically brought on board with the supervision of a customs officer and the documents are stamped with approval from the Customs that the vessel has left the country with the goods in question. Issues to be Aware of with VAT! • A business or company must be VAT registered in order to claim back the VAT paid on imports
