Temporary Admission is an EU mechanism designed in its simplest terms to enable non EU resident yacht owners to enjoy their private yachts within the EU for a certain period of time without liability to pay the EU VAT that otherwise would be payable upon their first arrival into the EU.
The current period of time that a yacht is allowed to remain within the EU under such relief is eighteen months which in certain circumstances is extendable.
A similar relief from paying VAT on import is also in certain cases available to yachts arriving purely for refit and repair work to be performed.
To qualify in all cases for Temporary Admission strict terms and conditions exist pertaining to the operation of Temporary Admission relief to prevent abuse of the system.
Generally speaking a yacht owner will be required to make a full importation whenever the vessel arrives into the EU from a non EU port. Situations where a formal import would usually be required include:
- The first arrival into the EU of a yacht constructed or purchased outside the EU
- The arrival of a yacht into the EU that was built within the EU for export but is now returning to EU waters
- The arrival of a yacht into the EU that is non-EU owned and would otherwise qualify for Temporary Admission but intends to operate commercially for charter within EU waters
In certain cases a formal export of a yacht should be made from the EU, for example where a new build yacht is sold by the builder as an export from the EU on a zero rated VAT basis.
Oceanskies is conveniently based in the yachting haven of Guernsey in the Channel Islands.
Guernsey has a special fiscal status in that it is outside the EU for VAT purposes but within the EU for customs purposes.
In certain situations this makes the island a useful stopover for yachts leaving the EU to clear customs as evidence of their departure and export from the VAT territory of the EU.
In certain situations it also makes the island an ideal place for the sale of yachts to take place outside the scope of EU VAT.
Oceanskies is able to provide a fully comprehensive yacht concierge, handling and customs agency services in such situations.
We can also arrange for a similar service to be provided by customs agents in other key points of EU export such as Norway, Gibraltar and Tunisia .
For further information please do not hesitate to contact us.