Dutch commercial yachts and VAT exemption

As a result of cooperation between the Dutch tax authorities, the Ministry of Transport and the HISWA association, a new set of rules for building and registering yachts over 24 m was introduced in the Netherlands in 2004. Initially the Dutch created their own rules for the standards and technical requirements of such vessels, known as the CCV code. However, as the UK’s MCA LY2 Code was the one that has been largely accepted world wide as the industry standard, this has now been accepted also under the Dutch requirements. Vessels which comply and follow the requirements for commercial and charter use are under this new regulation regarded as commercial vessels and exempt from Dutch VAT. So far we understand that the take up of this status has been modest. Given the issues discussed above and the lack of universal acceptance of this status throughout the EU this is hardly surprising.