It will be the thought of leasing a car rather then owning it when there is only one concept which contains revolutionized the automobile industry recently. Nowhere has this been seen more dramatically than available sector where leasing is currently the typical for car ownership. For more information about tienda nautica online click here.

Leasing for boats has become found in Europe for quite a while, however it is a purchasing option that could be little understood via the boating community typically, and particularly in the UK, even though it could actually offer significant VAT advantages regardless of if the vessel is required for private or commercial use. The two most popular schemes are the ones employed in France and Italy.

During their introduction, both countries were suffering a decline in yacht manufacturing. So that you can halt this decline, both governments introduced incentives for yacht proprietors to buy their vessels under leasing schemes, which provided significant VAT reductions. In addition, the schemes were depending on concept that the larger the vessel then the greater the saving, thus encouraging proprietors to buy larger boats.

The growth of yacht manufacturing with the Italian market nowadays have been spectacular, having a proportionate increase in leasing that has been up 32% in Q1 of 2005, and now represents nearly 6% of all the yacht financing.

Before explaining the specifics of such schemes, you should understand some of the concepts behind them, which should help clarify most of the relevant issues.

Firstly, in simple terms, a lease involves a bank or finance house, getting the asset then effectively renting it to the buyer on an agreed period in an agreed price. This is described as a transfer of services. After the lease, the buyer comes with the solution to pick the asset which then becomes a transfer of goods. For VAT purposes a yacht lease is often a supply of services and its deemed to happen where the person who makes the supply is established: i.e. French bank in France, Italian bank in Italy etc.

Secondly, they may be simple to build and administer and might maintainindividual and joint, or company names. Finally, you must realize that there may be two VAT elements, namely the VAT on the purchase price and the VAT within the leasing repayments.

The Italian law states that VAT must be placed on leasing repayments, only pertaining to time spent within EU waters, once we go ahead and take Italian scheme for example. Given that it is impossible to figure out this accurately, the Italian Revenue Agency (combined with the French & Maltese) has agreed that an assumed period does apply to a leasing contract, dependant on certain criteria. Within the Italian scheme this is the mixture off vessel size and kind, so to get a motor vessel over 24 metres in size.

The French leasing scheme is incredibly similar and is dependant on similar principles of assumed amount of time in EU waters. Their categories are derived from the Class of vessel as shown in the Certificate of Registry. The French VAT base rates are 19.6%, along with the minimum payable beneath the French system is 9.8% for your Class 1 vessel (50% of 19.6%). To find out more about tienda nautica please click here.

The most recent country introducing a leasing incentive is Malta, and also with a reduced VAT base rate of 18%, their rates range between not less than 5.4% to your maximum of 18%.

Having covered the basic principles of the things a leasing scheme is, and the way it works, we are able to now take into account the mechanics of having a vessel getting a European lease the following:

Example - Individual Acquisition Of A Brand New Boat From UK Broker/ Manufacturer

1.The buyer chooses the boat and agrees a price aided by the dealer/broker or manufacturer. 2.The consumer agrees a deposit and lease period together with the bank. 3.Your budget will pay for the boat. 4.The boat is leased to your client who pays installments at the reduced rate with regards to the scheme, vessel type and size. 5.Following the contract your bank sell the yacht for the client in the agreed 1% residual value. Full rate VAT applies to this payment as this is a transfer of goods. 6.The boat has become VAT paid.

The above mentioned example is for a person (or band of individuals) getting a boat utilizing a European leasing scheme. By two cases it is really possible to use a VAT free lease the following:

o A charter business selecting a vessel which is often used 100% for chartering in EU waters.

o An individual buying a vessel to get used 100% outside EU waters

Detailed below are among the main things about the leasing schemes:

o Leasing facility offered by 300,000 euros ( no maximum )

o Initial deposit between 20% and 50%

o Lease maturity from 3 to 8 years

o Residual value 1%

o Designed for both private and company ownership

o Accessible to both new and used boats

o Registration in just about any country or any flag

o UK flag is available below the scheme

o Chartering is permitted inside the lease agreement

Our company is receiving a lot more enquiries from the two UK and Europe to arrange leasing schemes with the European banking partners, as a specialist marine financial services broker. The schemes are straightforward to administer and arrange, and might offer significant savings in VAT. This most likely is not proper for all our clients, for a company we also offer numerous more conventional marine mortgages while we assume that whilst leasing offers numerous benefits. Discover more details visit at http://theboatonlinestore.es/