On May 3, 2013, the Court of Magistrates in Malta gave judgment in favour of S&D Yachts Ltd of Malta following a dispute over the applicability of VAT charged by S&D Yachts on supplies made to a client vessel.
It was found by the court that S&D Yachts had been correct in charging VAT to the vessel and the vessel was ordered to pay the unpaid VAT amount plus interest and costs.
The vessel had refused to pay VAT on the grounds that they were a commercial yacht.
It was however found that the vessel's commercial certification had lapsed and that there was no evidence of the vessel being engaged in charter activity.
On this basis the vessel effectively was not commercial enough in the eyes of the court to warrant VAT free supplies.
The result of the case provides further case law precedent within the EU and specifically in Malta that to benefit from VAT free supplies a yacht must be earnestly pursuing a genuine commercial business.
Here is a batch of Tonnage Plates for yachts we are registering with @RedEnsignGroup under British flag here @oceanskiesltd HQ awaiting courier despatch. These plastic strips are an important part of the yacht registration process #yachtregistration #yachtregistry pic.twitter.com/5xGR7f0Xo3
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Today we have been Northern France visiting an incredibly busy @Lagooncats factory near La Roche sur Yon for the tonnage survey of a newbuild Lagoon 46 sailing catamaran undergoing @RedEnsignGroup registration by Oceanskies #lagooncatamaran #yachtregistration #tonnagesurvey pic.twitter.com/rwmKAuzOvX
Today Duncan has been in a sunny and warm Monaco for the tonnage survey of an @PrincessYachts Princess 82 undergoing red ensign registration by Oceanskies - we are a leading yacht registration agency working with the world’s best yacht registries #yachtregistration #tonnagesurvepic.twitter.com/PUl9Sy4L9a9a