Yachts engaged in Trade (YET) scheme
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The scheme enables some private yachts to charter for a limited period of time in France and Monaco
The YET scheme allows privately registered yachts to engage in charter activities for a limited period of time. The scheme is simple and really interesting if an owner want to charter occasionally to offset expenses.
Only yachts which are privately registered under a flag which allows for “dual use”, i.e. commercial use under private registration, can apply. Secondly the yacht must meet the criteria for Temporary Admission. Thirdly, the yacht must be built to class or classed if over 500GT and must operate in full commercial compliance at all times, whether engaged in trade or not.
Only yachts which are privately registered under a flag which allows for “dual use”, i.e. commercial use under private registration, can apply. Secondly the yacht must meet the criteria for Temporary Admission. Thirdly, the yacht must be built to class or classed if over 500GT and must operate in full commercial compliance at all times, whether engaged in trade or not.
YET is simple and easy to set up. Since the yacht remains privately registered, the UBO is free to use the yacht without a charter contract and no VAT is due on the use.
The downside is that a yacht cannot benefit from VAT exempt supplies and cannot purchase VAT exempt fuel (either in Italy or in France) since it is privately registered. Also there are some limitations as to cruising grounds.
It is necessary to plan well in advance to obtain the VAT number and appoint the fiscal representative.
H&V Yachting handles all the steps in coordination with the captain and charter manager. Give us a call for more information.