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50 shades of VAT

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June 2017

Duty-free fuel and the transport contract


As of 2017, there is an option for yachts wishing the purchase VAT and duty-exempt fuel. They can operate under a transport service contract. 

Under a transport contract, the owner operates the yacht for a commercial purposes and offers a service to passengers rather than putting the yacht at the disposal of the charterer for recreational purposes. The owner, as service provider/carrier, complies with the ‘commercial purposes’ requirement.

However, the contracts has limitations since it is intended for the transport of passengers rather than for charter.