Superyachts: VAT Matters!

Picture the scene: you've purchased your dream yacht, had it delivered to your favourite European port, stocked up on your favourite food and invited your closest friends for an intimate cocktail reception and candlelit dinner.  Quite delightful.  Now imagine, upon arriving at the jetty, your guests discover the yacht has been seized by a heavily armed financial police squad and temporarily impounded due to your suspected non-payment of VAT.  This could, in my view, quite possibly, spoil the evening.  Of course a complete nightmare, but these things do happen. 

EU VAT regulations are complex, but the basics for private yachts are easy:  all privately owned yachts owned by EU residents within the EU or flying an EU flag are generally required to be VAT paid (with some exceptions) and any yacht cruising in EU waters for more than six months in any calendar year (regardless of ownership) is liable to pay VAT at the appropriate time.  A sale and purchase if it takes