EFTA01106889.pdf

MOORE STEPHENS BJAV Marine Limited 26-28 Athol Street Douglas Isle of Man IM1 1JB Moore Stephens Trust Company Limited Jubilee Buildings, Victoria Street Douglas, Isle of Man IM1251i T +44 (0)1624 699108 F ♦44 (0)1624 699001 Our Ref: 001825—GA—TARJ Date/ax Point: 01 January 2015 Tax Invoice No: 106022 VAT Registration Number 001 3729 24 BJAV MARINE LIMITED GBP VAT VAT GBP Professional services rendered in connection with: Provision of an Isle of Man place of business for the 12 3,000.00 20.00 600.00 months to 31 December 2015. The compliance maintenance fee for 2015. 500.00 , 20.00 100.00 Preparation and submission of the annual Isle of Man income 300.00 ' 20.00 60.00 tax return. VAT Agency Fee for the 12 months to 31 December 2015. 1,500.00 / 20.00 300.00 Value added tax 1,060.00 TOTAL 6,360.00 Payment may be made either by : 1) Direct Transfer 2) Cheque Bank details for direct transfer are: Please send to the address above. Account Number - 58884047 IRAN no - GB58R8OS18588058884047 PLEASE STATE INVOICE NUMBER Sort Code — 16-58-80 BIC - RBOSIMDX TERMS: Payment Is due on receipt of the invoice The Royal Bank of Scotland International Limited 2 Victoria Street. Douglas. Isle of Man, IM99 EFTA01106889  VAT SOLUTIONS FOR YACHT OPERATING BUSINESSES This information sheet covers the main issues faced with a completed Yacht Questionnaire. The by yacht operation businesses that register for Value purpose of these forms is to enable IOMCE to Added Tax (VAT) in the Isle of Man. It outlines the assess the suitability of the applicant to be main VAT liabilities arising from the operation of your registered for VAT as a business and to identify yacht business and the rules and procedures the yacht and where and how it would be carrying involved. out charters. Additionally, the following support documentation 1. Can I register my yacht operation business for has to accompany the application for VAT VAT in the Isle of Man? registration: Yes. — Covering letter describing the proposed venture — Detailed business plan The Isle of Man (IOM) is treated as a part of the UK for — Bill of Sale/Purchase Invoice the purposes of the EU Single Market, introduced in the — Boatyard's/Builder's agreement (if vessel is European Union (EU) with effect from 1st January under construction) 1993. Therefore IOM businesses enjoy practically the — Certificate of vessel registry (if completed same rights as UK and other EU businesses. vessel) — Central Charter Agent Agreement By locating your yacht operation in the IOM. you can — For Charter Vessels (MCA Certificate or acquire awlhe benefits that VAT registration confers equivalent) on a business within the EU. The key requirement for — For Charter Vessels (copy of current insurance VAT registration is that you demonstrate to Isle of certificate showing specific authorisations) Man Customs & Excise (IOMCE) that y yaceht — Intended or actual contractual arrangements operation business is clearly set out on a commercial with end users basis: — For leased vessels (lease agreement) You do not have to be an Isle of Man incorporated Upon receipt of a valid and supported application yacht owner to register for VAT. However, if for registration, IOMCE issue, usually within 7 to incorporated elsewhere you will need to have a "place 10 days, a VAT registration number, unique to of business" in the 1OM. Entering the IOM Foreign that person, and a Certificate of Registration Companies Register and having a local business showing the registered person's details. address fulfill this requirement. For this purpose we would required the following Registration Documents: In particular, the Certificate of Registration indicates the periods for which the person will be - Duly certified copy Memorandum and Articles of required to submit VAT retums. Association or equivalent constitutional documents. Certification must be either by the original Companies Registry where company was 3. What about registration of the yacht formed or by an officer of the company under itself? oath. If the original document is not in English then it must be translated into English; Strictly speaking, the "flagging" of a yacht owned — Full list of the officers of the company; and and used as a business asset is only of - Government registration fee of (currently) £160 secondary importance to the VAT man. Of far greater relevance is the commercial purpose to which the yacht is put. 2. What is involved in the VAT registration process? However, registering your yacht under a particular flag (e.g. under the British or Red Ensign flag A specified application for VAT registration has to available in several jurisdictions Including the be completed and submitted to IOMCE together O MOORE STEPHENS TRUST COMPANY 1 27 October 2010 EFTA01106890  TRUST COMPANY LIMITED VAT SOLUTIONS FOR YACHT OPERATING BUSINESSES IOM) is considered a mark of high quality and cash to pay your VAT liability to IOMCE. This is proof of adherence to international maritime laws. because as a business you are also entitled to deduct the VAT for which you are liable Thus the registration of your yacht may have immediately. Matching the liability to pay and your wider commercial implications for your charter right to deduct in the same VAT return can business. Because registration is essentially a neutralise the tax. vessel's passport to sail international waters, it is an area that needs to be carefully considered and Once the acquisition of the yacht has been dealt with well in advance of delivery and — satisfactorily evidenced, Customs & Excise will preferably — in advance of ownership. issue your business with VAT paid documentation, which you should carry onboard yacht at all times. 4. What happens when I purchase my yacht from an IOM/UK/EU supplier? The VAT paid documentation ensures that so long as your business remains the owner of the You will either be charged VAT (in the case of an yacht, it will not be required to account for IOM/UK supplier) or will be required to account acquisition tax in any other EU member state. for acquisition tax (in the case of an EU supplier to whom you have quoted your VAT number). For the planning and execution of such an intra- Community acquisition of the yacht, which yields So if you are a business or you intend to operate a VAT paid status for the yacht, we charge a your yacht as a business within the EU, you specific fee. should ensure that you are registered for VAT before you purchase your yacht. 7. Can I account for acquisition tax if I purchase my yacht from a non-EU 5. What is "acquisition" and "acquisition source? tax"? No. "Acquisition" is the word used to describe a purchase from an EU member state other than You will generally be required to account for the one in which you are registered for VAT. import VAT at the port of the first entry of the "Acquisition tax" is the VAT liability that arises yacht into the EU. And in the UK/IOM you can from this acquisition. only account for import VAT via Customs entry if the yacht physically sails into the customs port in If you are registered for VAT in the UK/IOM and the IUK/IOM. We plan and execute direct you purchase a yacht from an EU supplier, your importation of the yacht into the UK/IOM for acquisition tax is payable in the destination yachts that choose to enter the EU through the country of the yacht. Normally this means that UK/IOM. We charge specific fee for this service. your new yacht must sail from your supplier's state to the UK/IOM. However, there is a perfectly legal alternative route to use if for logistical or other reasons the But, if you are a VAT registered UK/IOM yacht yacht cannot physically sail into an UK/IOM port. operation business you can, under EU legislation This is called Onward Supply Relief (OSR) or, (the 'fall-back` provision), account for acquisition more commonly, the '4200 procedure". tax on your new yacht without the yacht having to Essentially, the yacht has to sail to the port of first physically sail to the UK/IOM. entry in the EU to be processed and issued with Customs stamped import documents. Because the yacht owning entity would already be 6. What does accounting for acquisition tax registered for VAT in the IOM where the import Involve? VAT due would ultimately be accounted for, Customs at the first port of call in the EU would This involves submitting a VAT return evidencing conditionally suspend the VAT liability due on the acquisition of the yacht. As with other goods, import. it does not necessarily mean that you need actual O MOORE STEPHENS TRUST COMPANY 27 October 2AN) EFTA01106891 VAT SOLUTIONS FOR YACHT OPERATING BUSINESSES We use Malta for OSR because they currently FCE as not compliant with the wider EU VAT law impose the least onerous conditions on the and directed that it be changed. procedure and because Customs there are specifically committed to this procedure. Therefore the most assured option for a commercial yacht looking to charter in the EU is For the planning and execution of the OSR to operate within the VAT system by registering procedure, which yields a VAT-neutral status for for VAT. the yacht, we charge a minimum inclusive fee. 10. Why should I register for VAT and what 8. What about Temporary Importation? rights and obligations follow from such registration? Under EU law, a yacht intended for charter cannot generally be brought into EU waters under Registration is a key aspect of EU VAT law and "temporary importation" (TI) arrangements. practice. By registering, a person joins the However, if the yacht is to be used privately by register of taxpayers held by the authorities. It is non-EU established persons identified as such to also through this registration that a person's the authorities then it may be admitted into the returns and payments (or reclaims) are made. EU for up to a period of 18 months. The yacht Each registered person has a unique nine-digit must be registered outside the EU and there are VAT registration number and in the UK/IOM this other restrictive conditions. number is prefixed by the "GB" country code. If the yacht is entering the EU for repair or refit it Registration for VAT may be determined by two can do so under a different kind of Customs sets of factors. Firstly, there is a compulsion to procedure known as Inward Processing Relief register where the authorities determine that a (IPR — "perfectionnement act?' in French). IT and person has become liable to register. This liability 1PR yachts are not entitled to access some of the may be triggered by factors such as their turnover tax advantages reserved for VAT registered or in the EU or whether they acquire a yacht already commercially operated yachts. being used for charters in the EU, which they intend to continue to operate in the EU. Secondly, a person may choose to register under certain 9. And what about the French Commercial circumstances. Exemption (FCE)? Both sets of factors apply to yacht owners Under FCE it is permissible for a commercial operating in the EU, but the second set of factors yacht to operate in France without a liability to tends to be more common. Owners would choose French VAT if the yacht: to register in the IOM as part of their risk management to avoid being obliged to register in - possesses a Commercial Registration a different EU country (e.g. where the yacht Certificate issued by any sovereign Ship actually sails), where registration would most Registry likely trigger a liability to other types of taxes — — has a permanent crew, and corporation tax, wealth tax, capital gains tax, etc. — operates bona fide commercial charters at all These taxes do not apply in the 1OM. times. More crucially, yacht owners would register to The problem is that FCE is only valid in France. avoid being deprived of the right to deduct input Also, because there is no identity documentation tax that they incur on their purchases within the to evidence adherence to this regime, your yacht EU. This includes the input tax on the purchase or may be open to attack by other EU Customs importation of the yacht itself. That right to deduct authorities where you plan to carry out charter VAT only comes with registration for VAT. operations outside French territorial waters. There Registration also enhances the status and the are also significant constraints on private or non- standing of the owning company, which is then commercial use of the yacht under FCE. Also, the recognised as an EU-established business. European Commission has recently declared the O MOORE STEPHENS TRUST COMPANY 3 27 October 2010 EFTA01106892  TRUST COMPANY LIMITED VAT SOLUTIONS FOR YACHT OPERATING BUSINESSES The above rights of a VAT registered person are the information that you send to us for the VAT matched by corresponding obligations, notably return. the obligation to charge VAT when it is due under the rules and to maintain proper accounting for VAT on an ongoing basis through regular VAT 12. What are the applicable deadlines for returns. filing VAT Returns and making or receiving payments? Please be aware that by registering for VAT in the IOM, IOMCE will require the business records in There are specific deadlines for making VAT full to be produced for inspection at the business returns and they normally fall on the last day of address within the Island. They also prefer to the month following each VAT period. Any VAT have the bank account details of the registered payments to Customs are payable at the time person on the Island. Accordingly, we would when the return is made; however repayment of normally recommend that a bank account for reclaims are made only after Customs have VAT-related transactions is opened in the IOM. received and accepted each retum, usually within 2 weeks of making the return. 11. What Is involved in maintaining proper IOMCE do impose various penalties for returns VAT accounting and keeping the VAT that are made consistently late. registered person in good standing? It is also normal for IOMCE to want to visit a Legally, VAT returns can be made monthly, registered person's IOM business premises at quarterly or yearly. In practice, most VAT returns least once every 2 to 3 years to inspect the are made quarterly, although some registered business records and accounts. persons may opt to make their returns monthly if they are consistently in a repayment position - i.e. if their trading position is such that they are 13. What If I don't get any charters in a regularly reclaiming VAT from C&E rather than particular VAT period? paying it. We would normally inform you of the VAT period for each company and the applicable It is not an offence for there not to be charters of deadlines once your company is registered. a registered person's yacht for a while. But, as for any business, Customs do expect the search for At the end of each VAT period, we need to fill in a opportunities to be real and genuine. VAT Return for the VAT registered yacht owner. A return tells IOMCE: Where no charters are secured in up to one season they would want to know why and would — how much VAT it charged to its customers, require evidence that the search for charters and how much it owes to IOMCE on other during that period has been earnestly pursued. supplies it has made They may request such evidence in the form of — how much VAT it is entitled to claim back website advertising; offers received and rejected; - the amount of VAT it must pay to IOMCE or relevant copy correspondence, etc. the amount of VAT it can get repaid by IOMCE - the total amount of sales (charters) and 14. If my company buys and operates a yacht purchases it has made for third-party charter on which it has - the total amount of goods sold to customers deducted VAT, can I personally use the or purchased from suppliers in other EU yacht too? countries. Yes, but you must do so on commercial terms. Your business accounts for VAT on an accrual basis, not on a cash basis. This means that all Remember that the basis on which your yacht invoices issued or received with dates falling operation company will be registered for VAT in within the accounting period must be brought to the IOM is commercial. This means that it should account, regardless of whether they have been be evident from the company's records that it paid or not. You should include all such invoices in seeks to either make a return on the investment O MOORE STEPHENS TRUST COMPANY a 27 October 2010 EFTA01106893 VAT SOLUTIONS FOR YACHT OPERATING BUSINESSES in the yacht over a reasonable period, or at the 15. How are the charters that I provide treated minimum seek to recover the capital outlay and for VAT purposes? the costs incurred in repair and maintenance over the period of the business venture. VAT applies to yachts as both goods (the yacht itself when it is purchased) and services (the Therefore if you as beneficial owner wish to use exploitation of the yacht for income on a the yacht occasionally or otherwise, you will be continuing basis). deemed to be the charterer or hiree and should expect to be charged by the company at the We have explained above why it is essential for normal commercial rate. the legal owner of a yacht that will operate charters in the EU to register for VAT in the EU; Like other EU authorities, IOMCE are very how to bring the yacht into the system and sensitive to abusive use of the VAT system. They account for VAT on its hull value so that the yacht have therefore issued the following important is recognised as "EU goods' with free circulation statement in respect of the use of a yacht within a rights in the EU. We also covered the rights and charter structure by the individual who funded its obligations of the legal owner within the VAT purchase: system and the benefits of operating within the wider EU VAT regime, as opposed to the For the avoidance of doubt, unacceptable charter parochial tax exemption or the limited tax structures may be challenged on the grounds that they suspension, regimes. meet the two-part test for abuse. Where the features of an unacceptable structure are not present (le. where the vessel is chartered to third parties with sufficient But it is also important to understand how the continuity and substance to meet the business test as chartering services that you provide are treated well as being chartered to the owner) it follows that the for VAT purposes. This is because even though structure will M amount to an abusive practice. In you are registered for VAT in the 1OM, the yacht these circumstances the VAT treatment of use by the will be sailing and providing charters across the owner well follow the normal VAT rules i.e. the same EU. VAT treatment that applies when the yacht is chartered to third parties." The key is in the "place of supply" rules. VAT on services is generally paid at the place where the This means in effect that they will not insist that service is supplied, which often coincides with the the beneficial owner of the yacht pays VAT on his place where the supplier is established. For use of the yacht, so long as that use is within the charters of yachts and other means of transport, strictly normal commercial context in which the however, the rules do differ according to whether yacht operates. However they would expect the the yacht is on "short term" hire (where the hiree usual charter contract with commercial rate to be has continuous possession or use of the yacht for put in place, with the VAT registered legal owner up to 90 days) or "long term" hire (where the hiree actually receiving payment of the sum in full. has continuous possession of the yacht for over 90 days.) Tax is due on short term hire at the On the other hand, yachts operating within the place where the yacht is actually put at the VAT system that are used disposal of the customer; whereas for long-term hire it is at the place where the hirer is - solely by the individual who funded its established. purchase (directly or indirectly); and/or - by a person or persons "connected" to that You are more likely to provide short-term individual; or charters, so in principle your VAT liability falls — if it is chartered to third parties as well, the where your yacht is physically located for that third party chartering activity lacks sufficient purpose. This incidentally is an advantage, continuity and substance to meet the because places like France and Italy, for the time 'business test' being at least, do not require any VAT to be charged on such charters under specified may be deemed to be abusive. conditions that you would likely meet. Therefore your charter activity would neither in practice be subject to VAT there nor in the 1OM. O MOORE STEPHENS TRUST COMPANY 27 October 2010 5 EFTA01106894  TRUST COMPANY LIMITED VAT SOLUTIONS FOR YACHT OPERATING BUSINESSES So your IOM VAT registration enables you to be The majority of goods purchased by your legally exempt from charging VAT on your charter business from EU VAT registered suppliers can business if your commercial yacht is located in normally be zero-rated for VAT purposes under France (or Italy or Malta), while giving you the intra-Community rules, as long as: right to deduct VAT on some major costs across the EU. This makes the administrative duties and o Valid EU VAT registration numbers for both costs associated with maintaining your VAT parties are shown on the invoice concerned; structure well worthwhile. and o The goods in question are removed from the EU territory of purchase or installation. 16. What if my charter activity takes place in Spain or Greece? Therefore, when goods are purchased from EU VAT registered suppliers, your business should Both Spain and Greece do not allow VAT free routinely provide the supplier with a copy of the charters in their territorial waters. Moreover, these VAT registration certificate and (if required) countries have extra rules as to licensing of commercial yacht registration certificate. charter activity and the flagging of your yacht. Complying with their extra requirements often means payment of additional taxes. Therefore if 18. Given the French Commercial Exemption your yacht is to be located in these countries, you (FCE), what can I expect when making should seek specific advice to ensure that you are purchases of excisable goods from French happy to bear these taxes. suppliers? Your charter yacht can nevertheless visit these Excisable goods Include fuel/lubricants, alcohol countries, so long as the charter actually begins and tobacco products. and ends outside. You can also use your GB VAT number to secure VAT exemption on supplies Under FCE, French Customs have determined received from local suppliers under the general that yachts are only entitled to VAT free fuelllubes, VAT rules. alcohol and tobacco if they are engaged in the performance of a valid charter contract at the time of purchase. VAT and heavy penalties are 17. As a VAT registered person, what types of increasingly being imposed on yachts that have supply can I normally expect to get tax taken these items VAT free but cannot provide free and where? relevant evidence. VAT is a consumption tax often charged at the If your yacht is operating under a current charter point of purchase. However, there are additional contract, your business should provide any French rules when supplies are made between two VAT supplier with: registered entities within the EU. - A copy of the VAT registration certificate. UK Suppliers - A copy of the commercial yacht registration certificate. As the UK and IOM are deemed to be the same — A crew list, and domestic VAT area, goods and services — A valid charter contract. purchased from UK suppliers should normally include VAT. If your yacht is NOT operating under a current charter contract it may still benefit from the intra- Because your business is registered for VAT in Community VAT exemption on purchases from the UK/IOM it can recover UK/IOM VAT charged ship's chandlers, refit works and other contractors by suppliers on its VAT returns, subject to the — for example, suppliers of spares/parts. You normal rules. should provide the French supplier with: Goods purchased from EU VAT Registered - A copy of the VAT registration certificate, and Suppliers (Not including UK/IOM) - A copy of the commercial yacht registration certificate. O MOORE STEPHENS TRUST COMPANY 4 27 October 2010 EFTA01106895  TRUST COMPANY LIMITED VAT SOLUTIONS FOR YACHT OPERATING BUSINESSES Yes. 19. What is so peculiar about excisable goods Certain goods and services purchased from EU and why are there special rules in the EU? suppliers will be subject to EU VAT that cannot be avoided. This list includes, but is not limited to: Excisable goods are subject to excise duties in addition to VAT. Apart from being governed by - Purchases from supermarkets and other local extra rules under EU law, they are a significant shops, which use electronic point of sale source of public revenue in all EU countries. receipts - where the supplier is unable to Consequently, the supply of these products is produce separate VAT invoices. subject to strict controls. - Land based fees, such as utilities (water and electricity and gas), port and harbour fees. Under the VAT legislation, all EU member states - Goods that are not removed, normally within should exempt from VAT "the supply of goods for 30 days, from the EU territory of purchase the fuelling and provisioning of vessels used for following purchase or installation. navigation on the high seas and carrying passengers for reward or used for the purpose of The types of purchases described above are commercial, industrial or fishing activities..? generally for values that are small in nature compared with other purchases. Although there is However, most EU member states interpret and a legal mechanism which allows for VAT apply this provision such that the exemption registered businesses to recover EU VAT incurred applies only to merchant and cruise ships. This is on such purchases, the process is complicated because these vessels generally and regularly ply and time consuming. It may not be cost-effective their trade in 'the high seas". Indeed, the to undertake for the amounts of VAT involved. European Court of Justice case law has tended to favour this interpretation. We would recommend, where any EU supplier (not including UK/IOM) considers charging VAT on France is fairly unique in allowing owners of significant purchases of goods and/or services, commercial yachts to make tax-free purchases of that you contact our office so that we may advise fuel and other excisable goods under their official according to the situation. FCE rules. Italy and Malta have largely followed the French 21. What about goods that I purchase outside example so far (requiring identical evidence from of the EU? qualifying yachts); but because their rules are less yachting-specific, suppliers of these goods there Goods purchased by your business whilst your vary in their approaches on the matter. We would yacht is outside of the EU (e.g. in the Caribbean) simply recommend that if your yacht meets the would not be subject to EU VAT. It may be requisite conditions you seek out suppliers who possible that a local sales tax would be charged are able and willing to supply these products tax- and where this happens recovery will be unlikely. free in these countries. Tax-free excisable goods are generally not 22. When the yacht is in the EU and I purchase available in the UK/IOM, Spain, Greece, Germany, goods from non-EU suppliers, which I then the Netherlands and most other EU countries, import, do I have to pay VAT? except in very specific circumstances where your yacht makes a "fuel stop" and you can provide Yes. satisfactory evidence that the yacht will depart the EU immediately after. Goods purchased from non-EU based suppliers by your business, which are then imported into the EU would normally be subject to import VAT and 20. Are there any goods and services on duty at the point, and in the EU country of which I cannot avoid VAT even with my importation. IOM VAT registration? O MOORE STEPHENS TRUST COMPANY 27 October 2010 EFTA01106896  TRUST COMPANY LIMITED VAT SOLUTIONS FOR YACHT OPERATING BUSINESSES However in certain circumstances — e.g. where a in their member state, acquisition tax on the tender or spares to your commercial yacht are to yacht. be imported into the EU - we would normally advise and intervene on your behalf so as to Several other scenarios are possible. Therefore achieve tax-free importation. you should consider these matters carefully and notify us before you sell your yacht. 23. What happens when as a VAT registered person I sell my yacht? 24. What happens to my VAT Paid documentation when I sell my yacht? The VAT treatment will depend on where the yacht is at the time when you sell it, as well as the You should return any VAT Paid documentation VAT status of your customer. Three possible to IOM Customs. The documents are valid only scenarios are: for you and in no circumstances should you transfer them to the purchaser of your yacht. i.) IOM/UK VAT registered operation sells the yacht to an IOM/UK/EU customer and the yacht is in EU waters at the time of sale. 25. What do I need to do then to de-register my company for VAT? VAT is due to be declared on the sale by the /OM operation in the member state where the If de-registration Is appropriate, you will need to yacht is located. Where the purchaser is in submit an application to IOMCE. In order to the UK/IOM, IOMCE would accept a transfer process this application and approve of going concern (TOGO) treatment if the deregistration, IOMCE would need to be satisfied relevant conditions are met. TOGC ensures a that the sale of the yacht used in the business VAT-free sale of the yacht, but the procedure has been properly and correctly accounted for. must be managed skilfully . The customer must register for VAT with IOMCE too and The information above is only an outline. It is based on provide evidence of its intention to continue a information available at the time of writing which may similar charter business. not be current at the time of reading. It is not intended to be comprehensive and so may not be relevant or ii.) IOM VAT registered operation sells the yacht appropriate to specific needs or requirements. No to any customer and the yacht is outside EU responsibility can be accepted to any party seeking to rely on the information provided. In all cases you waters at the time of sale. should seek professional advice specific to your circumstances. This supply would be outside the scope ofEU VAT and no VAT would be due on the sale For further information, please contact Ayuk provided the IOM operation could show that Ntuiabane or Grant Atchison: the yacht had left EU waters at the time of sale. However, it the yacht were to return to the EU, VAT would be payable by the new owner at the first port of entry in the EU. MOORE STEPHENS TRUST COMPANY liTED Box 25, 26-28 Athol Street, Douglas, Isle of Man iii.) IOM VAT registered operation sells the yacht 1BD to another yacht operation business that is registered for VAT in another member state Telephone: 00 44 1624 662020 and the yacht is in the other member state's Facsimile: 00 44 1624 662430 waters. E-mail: [email protected] If the VAT number of the customer has been Licensed by the Isle of Man Financial Supervision provided and shown on the sales invoice then Commission as a Corporate Service Provider VAT need not be accounted for by the /OM Moore Stephens Isle ofMan is an independent memberfirm of operation. The IOM yacht operation business Moore StephensInternational Limited would complete an EC Sales List and the customer would declare on their VAT return, 0 MOORE STEPHENS TRUST COMPANY 27 October 2010 EFTA01106897  MOORE STEPHENS TRUST COMPANY LIMITED VAT Procedure 4200 00P via Malta Captain's Guide 1. BEFORE (c) Following the inspection and processing of documentation by Maltese Customs, importation (a) documentation will be issued to the captain and - Exchange Captain telephone numbers and e- clearance for departure will be granted. mail addresses with Maltese Agents; - Advise Maltese Agents of yacht entry into Malta - 3. AFTER we will attend to this; - Advise Maltese Agents of berthing requirements (a) Following departure, the Vessels should steam for stay in Malta based on vessel dimensions. directly to another EU port; (b) We need the foHowing documents in hand - (b) The captain may be asked to present the they should be provided immediately if they have importation documentation obtained in Mate to not yet been sent to us: the customs authorities in the next EU port; - Last few pages of the Vessels' Log book (c) The captain should also obtain evidence of which cover the period 1 week prior to arriving in entering another EU country (docking slip, berth Malta; bill, port authority confirmation and such like will - Copy current Insurance policy; do) and send it either to us or directly to the - Copy Certificate of Vessel Registration: Maltese Agents. This wit complete the obligations "'Copy purchase contract; of the captains in respect of importation. „ie Copy Bill of Sale from previous owner to Company for valuation purposes. The information above is only an outline. It is based on information available at the time of It is very important that an entry for the sale of the writing which may not be current at the time of Vessel is made in the logbook and dated when in reading. It is not intended to be comprehensive International Waters and prior to arrive/ in Malta. and so may not be relevant or appropriate to The narrative for the logbook entry may read as specific needs or requirements. No responsibility follows: can be accepted to any party seeking to refy on the information provided. In all cases you should Transfer of ownership from XYZ (8V0 to )O(X seek professional advice specific to your Limited (IOM) - Bill of Sale dated (date in circumstance& International Waters)" For further information, please contact us: 2. DURING MOORE STEPHENS TRUST COMPANY SITED (a) On arrival in Malta, the captain should contact Box 25. 26.28 Athol Street, Douglas, Isle of the Maltese Agents and prepare the following for Man IM99 1BD inspection: Telephone: 00 44 1624 662020 - Original and complete Log book; FacsknIle: 00 44 1624 662430 - Original insurance policy; E-mail: mailemoorestephens,co,im • Linginal Certificate of Vessel Registration. Licensed by the Isle of Man Financial Supervision Separately, we will provide the Maltese Agents Commission as a Corporate Service Provider with an invoice and a nominal Bill of Sale for valuation purposes. The Maltese Agents will also help the Captain to complete a 1 page importation form on board. (b) The Maltese Agents will then co-ordinat