Rosemont Yacht Services is excited to officially announce, after several months of intense collaboration with Cayman Islands Shipping Registry, a major player within the yachting world, that the Registry has now also implemented its own YET dual use programme which is fully operational since December 2017.
After helping Marshall Islands to open the YET path in 2015, Rosemont is extremely proud to have been a major actor in this new achievement and wishes long and successful life to the new Cayman Islands Mediterranean dual use programme!
Briefly and for those who are not familiar with the YET programme yet:
A YET can be defined as a yacht of 24 metres or more in load line length, holding a valid Certificate of Class, which is voluntary compliant with all applicable commercial standards and regulations; which has obtained and maintains a Yacht Engaged in Trade Certificate of Compliance, allowing the yacht to obtain temporary Certificate(s) for a Yacht Engaged in Trade, and therefore to engaging in up to 84 days of charter per calendar year with no more than 12 passengers.
The main benefit of the program is flexibility; owners do not have to choose anymore between purely private or commercial registration. Owners can now use their yacht privately whilst being able to offset some of the running costs by offering their yacht for charter. Unlike commercially registered vessels, owners need not sign a charter agreement nor pay VAT on their own use. Unlike yachts operating under the switching regime, there is no need as well for switching between pleasure and commercial registration every time yachts change their mode of operation and use, nor to proceed with export/import formalities, leave the EU and visit a third country port each time yachts switch between pleasure and commercial use.
To be eligible to register as YETs, a yacht must either be in possession of a Value Added Tax [VAT] paid certificate or other document proving that the yacht has a VAT paid status; or operate in EU waters under the Temporary Admission [TA] regime in accordance with EU regulations meaning the yacht can enter and stay in EU waters for a period of up to 18 months without being liable to pay VAT on the hull. This second option is only available for yachts ultimately owned by non-EU residents and owned by non-EU Companies.
Pleasure yachts in possession of a valid Yacht Engaged in Trade Certificate of Compliance (YET COC) should expect to be inspected and audited as commercial yachts. Furthermore, private yachts operating under temporary Certificate(s) for a Yacht Engaged in Trade (and not only under private certificate of registration) shall be subject to inspection and control measures under the Paris Memorandum of Understanding.
For the time being pleasure yachts which are operating under a temporary YET certificate can only start their charters in Monaco, France and in Italy in certain conditions. Further developments are awaited soon…
For any further information on YET registration please contact Janet Xanthopoulos, Legal Adviser / Yacht Ownership & Administration Dpt Manager at email@example.com
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