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The YET Scheme explained
Customs schemes available to US built yachts entering the EU
Yachts Engaged in Trade (YET) is a new dual use operation program to offer a third means of registration for commercially compliant non-EU flagged yachts. YET provides flexibility to owners who can operate their yacht privately with the option to charter their yacht for a limited period, typically up to 84 days in EU waters.
Who can use the YET scheme?
Firstly, flag state must allow a dual use operation program (Marshall Island and Cayman Islands do).
Secondly, the yacht must be 24 metres or more , be in class and fully comply with the requirements of the Large Yacht Code, and operate in full commercial compliance at all times, whether engaged in trade or not.
Finally:
1. the yacht owning company must not be registered in the EU
2. the UBO must not be an EU resident
3. the yacht must have a VAT paid status or operate under Temporary Admission regime in EU waters.
US built yachts that enter the EU under TA are not subject to the tariffs. However, the program requires approval by flag state so it is essential to start the process in advance.
French Customs have changed their interpretation of laws on dual use operation programs. As of this year they do not consider chartering to be ‘commercial use' since the end purpose of the charter is personal not business.
So how does YET work in practice?
While there are a number of advantages for the UBO offering the yacht for charter under YET (the UBO doesn’t need to sign a charter agreement and no VAT is due on charter fees, just to mention a couple) there are some drawbacks fsince only non EU charterers are allowed. Failure to comply will expose the yacht to payment of VAT on the hull.
Secondly, charters are currently limited to Monaco and French waters. Lastly, the yacht cannot take on VAT exempt fuel.
Although they take some digesting and require advance planning, the current importation schemes in place for non-EU yachts provide a range of options for private use and charter.
Comprehensive expert guidance, detailed advance planning and timely, accurate paperwork are essential to ensure a trouble-free cruising.
Feel free to contact H&V Yachting to discuss your summer plans.
Who can use the YET scheme?
Firstly, flag state must allow a dual use operation program (Marshall Island and Cayman Islands do).
Secondly, the yacht must be 24 metres or more , be in class and fully comply with the requirements of the Large Yacht Code, and operate in full commercial compliance at all times, whether engaged in trade or not.
Finally:
1. the yacht owning company must not be registered in the EU
2. the UBO must not be an EU resident
3. the yacht must have a VAT paid status or operate under Temporary Admission regime in EU waters.
US built yachts that enter the EU under TA are not subject to the tariffs. However, the program requires approval by flag state so it is essential to start the process in advance.
French Customs have changed their interpretation of laws on dual use operation programs. As of this year they do not consider chartering to be ‘commercial use' since the end purpose of the charter is personal not business.
So how does YET work in practice?
While there are a number of advantages for the UBO offering the yacht for charter under YET (the UBO doesn’t need to sign a charter agreement and no VAT is due on charter fees, just to mention a couple) there are some drawbacks fsince only non EU charterers are allowed. Failure to comply will expose the yacht to payment of VAT on the hull.
Secondly, charters are currently limited to Monaco and French waters. Lastly, the yacht cannot take on VAT exempt fuel.
Although they take some digesting and require advance planning, the current importation schemes in place for non-EU yachts provide a range of options for private use and charter.
Comprehensive expert guidance, detailed advance planning and timely, accurate paperwork are essential to ensure a trouble-free cruising.
Feel free to contact H&V Yachting to discuss your summer plans.
