Chris Allix, founder and director of Dominion Marine Corporate Services providing the yachting industry with yacht and superyacht ownership solutions since 1984, closely observes changes to EU VAT and marine legislation to ensure the optimum and most cost-effective ownership structures are developed.
Chris Allix, founder and director of Dominion Marine
Due to 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 and unique VAT deferment structure for pleasure yacht owners.
ICM Group of Companies asked Chris to tell them more about this new product:
“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 our 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 5 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 5 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 24m-30m yachts was down 7.6% in 2012 compared to 2010 and the 30m-50m yachts down 6.9%.
Chris Allix told ICM Group 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 25-28 September 2013. Chris Allix will be joined by Catherine Connolly of Dominion Marine, Jackie Baker of Dominion Consultants and Simon Roberts of Dominion Crew Solutions. To book an appointment at the show, please contact Jackie Baker: [email protected]
