top of page

Press Room - News & Articles

Search

BREAKING: Final destination for yacht leasing schemes?

  • Fergal Quinn
  • Mar 9, 2018
  • 1 min read


With this strongly worded statement, the EU Commissioner for Economic and Financial Affairs, Taxation and Customs Union, Pierre Moscovici, may well have sounded the death knell for the long-term viability of lease-purchase schemes available to private yacht purchasers in Cyprus and, most notably, Malta. The European Commission has on 8 March 2018 sent letters of formal notice to Malta, Cyprus (and also Greece) for not levying what they consider to be the correct amount of VAT in respect of yacht lease and lease-purchase. The three Member States have two months in which to respond formally to the arguments put forward by the Commission.


It seems that the publication of the Paradise Papers has thrust yacht leasing and its favourable VAT treatment in some Member State into the spotlight and the Commission clearly does not like what it sees. As Moscovici comments, “we cannot allow this type of favourable tax treatment granted to private boats, which distorts competition in the maritime sector”. The Commission’s stance will not surprise many in the industry, and indeed many will be surprised that the Commission has not acted until now. It now remains to be seen what happens next, and the yachting industry will be watching how matters unfold over the coming months.

The content of this article is provided for general information only. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content herein.

 
 
 

Recent Posts

See All
Ukraine

At WQW, we have always sought to take a principled approach to our work, grounded in integrity and excellence. We consider it important...

 
 
 

Kommentare


Featured Posts
Recent Posts
Archive
Search By Tags
  • Twitter Clean

© 2016 by Wysocki Quinn Woollam, a trading name of WQW Limited                                   

 

A company registered in England and Wales with Company No. 09876703

 

Registered Office: 22 Great Marlborough Street, London W1F 7HU    

 

VAT registration number GB227401632

                                                                                                                                                          Authorised and regulated by the Solicitors Regulation Authority, SRA No. 626619

bottom of page