The Superyacht Report 181 - Transparent fiscal treatment

The Superyacht Report 181 - Transparent fiscal treatment

Arnold van Steenderen
04 October 2017

In The Superyacht Report 181, a commentary article was published by Rory Jackson called Transparent fiscal treatment. Following a muted initial response to HISWA Holland Marine Industry introducing the yachting market to the Dutch flag, the initiative has been relaunched in light of the evolving attitudes of superyacht owners. Our firm's Arnold van Steenderen was asked to comment on the relaunch of the initiative "Flying the Dutch flag" and stated as follows: "The CCV project was to provide an alternative to the Red Ensign flags that yacht owners favour," explains Arnold van Steenderen, managing director at Van Steenderen Mainport Lawyers. "Transparent agreements with the Dutch tax authorities within the framework of a competitive VAT status and the potential to professionally operate the ship management function were some of the goals involved." (...) "If a yacht is built under the CCV regime, a tax arrangement can be agreed with the Dutch Tax and Customs Administration through which zero-rate VAT for seagoing vessels can be applied for the construction and outfitting of the yacht in the Netherlands," continues Van Steenderen. "In the event that the yacht, which is intended for commercial use, is built elsewhere in the EU, a zero-rate can also be applied provided an intra-Community supply to the Netherlands is agreed." (...) "If the owner decides to stop operating as a CCV vessel, the yacht in question ceases to be a 'seagoing vessel' for VAT purposes," says Van Steenderen. "In principle, VAT is then payable on the supply. If the sale takes place at prevailing market prices, the VAT position has been given the status of 'private craft' for which EU VAT has been paid."

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