Motor Boat & Yachting — February 2018

WORLDNEWS

Most charter companies

have resumed sailing

An amended bill to the Greek

circulation tax is likely to become

law following discussions between

the Greek Marina Association and

the country’s parliament, according

to the Cruising Association. This

could mean that boat owners will

only be charged when they leave port.

Two years ago, the government

introduced a new tax that caused

many boat owners to leave Greek

waters. That tax has not yet been

implemented and discussions have

been ongoing to reduce the tax and

make it fairer.

Chris Robb, a member of the CA,

who has been campaigning on behalf

of all those cruising in Greece, said,

“During the summer, the bill went

Greek cruising tax soon to be law

Malta denies misuse of VAT rule

BVI ‘back open’

after hurricanes

Statement says no breach of EU rules

Despite being hit hard by hurricanes

Irma and Maria in September, the

British Virgin Islands (BVI) and its

tourism sector have announced

that they are back open for business.

Commercial flights to the BVI have

resumed and car rentals and taxis

are ready for hire, albeit with fewer

vehicles available in some cases.

The BVI Tourist Board and

government say that they have

been ‘fully dedicated to restoring

the territory to its luxurious allure.’

Most charter companies have

resumed operations for the winter

2017/2018 season – many of who

have brought new yachts to the

BVI for the first time. “We remain

energised and optimistic that the

destination’s tourism industry will

rebound,” said Sharon Flax-Brutus,

BVI director of tourism.

Taxation commissioner has warned that lease

schemes could result in large fi nancial sanctions

UK body continues its

campaign for a reduction

Four leading marine organisations

in Malta have strongly denied

accusations of wrongdoing in its

application of EU rules governing

VAT on boats.

Pierre Moscovici, EU commissioner

for taxation, wrote to the Maltese

government complaining about

schemes that allow people to lease

boats so that they only pay VAT

on the proportion of use they

enjoy within EU waters.

The letter asked that the rules

be changed and warned that if they

IT COULD ONLY

HAPPEN IN....

BRITAIN

TALL SHIPS DRESS

Designer Kathryn Russell was

commissioned to create this

outfit to promote the Tall Ships

Races taking place in Sunderland

this July. The hand-stitched

bodice resembles a ship’s rigging

with a gold thread galleon sewn

on to the skirt and an entire

square rigger perched on the hat.

back to parliament with a new charge

rate of €10 per metre above 12m,

raised from €8, despite the iniquity

of a huge jump in cost from 11.99m to

12m. That was rejected, and the new

price coming before parliament at the

moment is back to the €8 per metre.

We will continue to raise our voices in

complaint that it is too expensive.

The single concession to the law,

which has been driven by the Greek

Marina Association, is that the tax

will only apply when cruising – ie

when you leave your port. We believe

it may benefit bigger leisure boats

more than cruising sailors.”

aren’t, the European Commission

may launch an infringement

procedure that risks incurring

heavy financial sanctions.

Moscovici has also written to

the British government about the

Isle of Man’s tax practices on yachts

and private jets.

Malta Maritime Law Association,

Malta Maritime Forum, The Yachting

Trade Section of Malta’s Chamber

of Commerce and the Superyacht

Industry Network Malta deny the

accusation from the commissioner.

They say that Malta’s VAT treatment

of leasing of pleasure yachts has

been based on the similar application

of this principle by other member

states of the EU, in particular France

and Italy.

The jointly written statement by

the interested parties says: “The

guidelines issued by the Maltese

VAT department regarding VAT

treatment of yacht leasing are

based on the principle of effective

use and enjoyment as enshrined

in article 59a of the VAT directive,

which allows member states to

limit the VAT payable on a supply

of services to that portion only

which reflects use and enjoyment

of the service within the EU.”

The Grand Harbour

in Valletta, Malta’s

capital, is packed

The BVI suffered

devastating damage

during recent storms

The new tax will only

apply when boats

leave their home port

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