Understanding VAT

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“Best practice” to select a suitable flag would generally include consideration of the following criteria:

Strong economic international standards – a minimum ‘A rating’.
Robust legal system.
A commercially run register – emphasis on service and response.
A strong performance in the areas of safety, security, and environmental protection.
A jurisdiction that is Whitelisted by the Paris & Tokyo Memorandum of Understanding (Paris/Tokyo MoU) – and has a low-risk rating.
A jurisdiction strong on reputation, compliance, and transparency.
A jurisdiction with low registration costs, simplified bureaucratic procedures, and an appropriate tax regime.
Owners who choose a flag outside of their country of residence do so for one of the netherlands mobile database above reasons. Just remember, once you have chosen where to register your vessel, some of that particular country’s laws may apply to your yacht since a yacht is considered as an extension of the country under which it is flagged.


VAT is chargeable on any commodities imported into the EU, and yachts are no exception. VAT is also charged on commercial use of such yachts within EU territorial waters. Therefore, it is important to understand how VAT affects you.

As expected, EU member states have different VAT rates and also have their own interpretation regarding certain EU VAT directives. There may also be local practical procedures which differ from those of other countries – so it is important to speak to a professional adviser to clarify the legislation and procedures that could apply to you. Once the VAT element is settled, a yacht can circulate freely throughout the EU.