Consulting upon VAT in EU
Interlegalconsulted the client upon the obligation to pay VAT in EU on pleasure yachtregistered under the Latvian flag. The problem was, whether the yacht may,without VAT payment in EU but under the Latvian flag, stay in EU for unlimitedperiod. The Latvian audit company was also engaged in the tax analysis work.
Analysisconcerned the issues of tax and customs legislation. Special attention wasdrawn to the issue of yacht customs clearance in EU, namely: validity of temporaryimport customs regime in view of yacht registration under the Latvian flag andobligations of master and shipowner to sail outside EU upon expiry of 18months.
