Commercial Yachting Activities through Isle of Man Companies: VAT Registration
Following our notice after a meeting between Safehaven International Limited and Manx Customs at the end of November 2009, we are now able to advise that the Customs and Excise Department has given a deadline to finalise the closing down of non-commercial chartering arrangements.
Recently the Manx Customs confirmed they will accept and support bona fide charter companies which commercially charter their yachts for third party use.
These initiatives follow the UK HMRC’s announcement in August 2009 (Brief 56/09 www.hmrc.gov.uk/briefs/vat/brief5609.htm) advising they would consider less than arm’s-length arrangements as “abusive”.
The Manx Customs have now set a deadline to close down all less than arms length charter arrangements by 30th April 2010.
Clients of Safehaven International Limited are reminded to contact us with a view to ensure that arrangements are compliant, or, if not so, properly terminated.
