Fuelling up a super yacht tax-free in the Mediterranean is proving to be a dicey affair. The customs authorities have sprung into action.
The latest Yachting VAT Note from Moore Stephens in the Isleof Man examines the question of tax-free fuel for super yachts in context. Ayuk Ntuiabane a Director with Moore Stephens Consulting Limited told us, “The authorities are reviewing and challenging past charter contracts and other documentary proof used to take fuel tax-free.”
He tells us they are asking:
- Was it a genuine charter contract or a convenient fake?
- Who was on board or on the passenger list?
- Where did the yacht go after taking the fuel?
- Was the fuel supplied to a foreign based private pleasure yacht for outbound voyages? What evidence did the fuel supplier obtain to justify tax-free sales?
- Who else is in their supply chain, etc?
Suddenly, every past act looks like excess, and now it seems it is tax claw-back time.
Maybe now is the time to contact Ayuk and get his advice