Isle of Man based Dominion Marine has been providing help for yacht and superyacht corporate owners and to the yachting industry since 1984.
Founder and director Chris Allix closely monitors changes to EU VAT and marine legislation to make sure the best and most cost-effective ownership structures are developed.
Now, because of recent changes to EU VAT regulations, the ratification of the Maritime Labour Convention (MLC) and stricter requirements for commercial registration, Dominion Marine has launched a new VAT deferment structure for pleasure yacht owners.
Chris said: ‘I am very excited to announce the launch of our new VAT solution for pleasure yacht owners. We have been working hard behind the scenes, meeting with the relevant authorities and seeking tax and legal opinions to make sure, as always, we are fully compliant.
‘Dominion Marine SARL has been incorporated and VAT registered in the Principality of Monaco to provide this solution to clients.
‘We already have vessels using the structure so it has been tried and tested.
‘This solution is ideal for pleasure yacht ownership and is based on a five year bare boat rental contract.
‘The owner defers the payment of VAT on the acquisition of the yacht and only pays VAT on its depreciation, in accordance with European Court judgements.
‘At the end of the five year period the client has the option to enter into a new rental period. Should the client decide to sell the yacht, there are no penalties and all options relating to the tax on the yacht remain open.’
The team at Dominion Marine believes there is a market for this new product due to the decrease in commercial charters and recent VAT changes affecting the commercial yacht industry.
According to the Superyacht Index, published by Campers & Nicholson, the total sold weeks in the charter market for the 24 metres-30 metres yachts was down 7.6 per cent in 2012 compared to 2010 and the 30 metre-50 metre yachts down 6.9 per cent
Chris Allix said the complexities and extra costs of running a commercial yacht are increasing all the time, making it harder to offset those costs with revenue from charters. The decrease in charters together with the implications of the new MLC regulations for commercially registered yachts is giving yacht owners cause for reflection.
‘I have been in the industry long enough to know how difficult it has become to operate a commercial yacht. I think the time has come for many superyacht owners to go back to using their yachts purely for pleasure. I highly recommend this new VAT deferment structure to yacht and superyacht owners who are no longer interested in running their vessel as a commercial enterprise. The fact it is based in Monaco will also make life easier for them as that is where the paperwork has to be signed. The vessel has to visit Monaco to sign the rental agreement but of course many yachts are already berthed there or just around the corner along the French Riviera!’
Dominion Marine will be exhibiting at the Monaco Yacht Show from September 25-28.
Chris Allix will be joined by Catherine Connolly of Dominion Marine, Jackie Baker of Dominion Consultants and Simon Roberts of Dominion Crew Solutions.
