Exporting Yachts Outside the EU: A Comprehensive Guide
Exporting yachts to non-EU destinations involves several critical steps to ensure compliance with European Union (EU) regulations. Whether you’re sending a commercial FCE compliant yacht to the Caribbean for the winter season or managing the export of a yacht with VAT paid or VAT accounted status, understanding these procedures is essential to ensure compliance and avoid any potential VAT risk.
This guide provides an in-depth look at the key aspects of yacht exportation from France and Monaco, including also VAT considerations and the Returned Goods Relief Regime.
Exporting Commercial Yachts Flying a Non-EU Flag
For commercial yachts flying a non-EU flag, such as those bound for the Caribbean, the exportation process involves specific documentation and procedures:
A. Export SAD Document
The Single Administrative Document (SAD) is a crucial part of the export process. Before the yacht departs the EU, the SAD document must be issued. This document is used as a customs declaration. It contains details of the yacht, its destination and other information.
B. Proof of Arrival and ECS Exit Status
Once the yacht has left the EU and arrived at the non-EU port, you must provide proof of arrival to finalize the export SAD. This step is crucial to complete the export process and achieve the ECS (Export Control System) Exit Status confirming that the yacht has officially exited the EU customs territory.
Exporting EU Goods with VAT paid or accounted for VAT status
For yachts classified as EU goods where VAT has been paid or accounted for, compliance with the Returned Goods Relief Scheme is essential to maintain VAT status and avoid potential VAT risk on re-importation. The risk is very high, because in the event of an inspection the customs authorities could request VAT on the price of the vessel.
Returned Goods Relief Regime
The Returned Goods Relief Regime allows EU goods, including yachts, to be exported and then re-imported into the EU without incurring additional VAT, provided that certain conditions are met. To qualify, the yacht must be exported before departure and re-imported upon its return within three years to maintain its EU VAT paid / VAT accounted for status. Bear in mind that the yacht must be returned to the EU in the same condition.
Conclusion
Exporting yachts to non-EU destinations involves careful management of customs procedures and documentation. For commercial yachts flying non-EU flags, issuing the SAD document and providing proof of arrival are crucial steps to complete the export process. For EU yachts with VAT paid or accounted for status, adhering to the Returned Goods Relief Regime is essential to preserve VAT status and facilitate re-importation. By understanding and following these procedures, you can ensure a seamless and compliant exportation and reimportation.
Feel free to contact our team for assistance with the process and to ensure compliance.
