Rosemont Yacht Services & Management have successfully completed the first ever Marshall Islands (RMI) Yacht Engaged in Trade (YET) registration.
Janet Xanthopoulos and the team at Rosemont have been instrumental in bringing the whole program together and are very proud to announce that they have successfully facilitated the first YET throughout the preparation, auditing and registration processes.
The YET certification was obtained in time for an active charter season and the yacht has recently completed her first successful third-party charter under the scheme.
Many Industry professionals have shown a great deal of interest in the new dual-use program since its inception and subsequent launch during the Monaco Yacht Show last year, but the majority have been waiting in anticipation for the first YET to be certified before following in the footsteps of the Rosemont Team.
How does YET registration work for those who are not familiar with this new program?
A YET is a private yacht over 24m permitted to engage in charter activities for up to 84 day in any 12-month period, provided it complies with all relevant regulations and requirements that apply to RMI Yacht Engaged in Trade yachts, which are in-keeping with those applying to commercial yachts, as outlined in the RMI Yacht Code.
The YET unique initiative represents a third way of operating yachts without compromising on safety. The YET initiative puts an end to the Mediterranean Yacht Owners dilemma: either use their yacht on purely private basis without the possibility to charter their yacht to third parties or charter their yacht to third parties with the obligation to pay VAT on their own charters and personal use monitored to ensure legitimacy of commercial status.
The YET initiative replies to a real need within the luxury yacht market for an efficient dual use operating program. Now owners can finally charter their yacht out to third parties on an occasional basis to offset their annual running costs and use it freely the rest of the time without the need to sign a charter agreement, pay VAT on their own use, “flip flop” from private to commercial certificate of registration, import / export the yacht each time there is a change of use. All this can be achieved with total fiscal transparency.
Applicable yachts must either be in possession of a Valued Added Tax (VAT) paid certificate (if ultimately owned by EU residents); or in the case of a non-EU ownership, enter the EU under Temporary Admission (TA) (in accordance with EU customs regulations, permitting yachts entry for up to 18 months without
being liable to pay VAT on the value of the yacht). For all commercial charter periods, the yacht will need to be placed under TA for commercial activity (“commercial bubble”) and obtain a Temporary Certificate of registry for Yacht Engaged in Trade (this requires specific formalities with French Customs and RMI).
As YET yachts are considered as private yachts from a fiscal point of view no VAT / duty exemptions will apply on fuel, supplies and services at the exception of works. VAT should be paid on third party charters as for pure commercial yachts.
With more yachts looking to register as YET over the coming months, and plans in the pipeline for Rosemont Yacht Services in cooperation with RMI to initially extend the YET chartering area from Monaco / France into Italy and Spain, this initiative is one to watch as it revolutionises the way yachts can charter.
Janet Xanthopoulos continues to work closely with RMI as the YET registration develops throughout the Mediterranean and offers authoritative legal and fiscal advice to yacht owners and yacht-owning companies on how this form of registration will enhance their yacht ownership experience.
Being an active Member of the Monaco Cluster Board, Janet also thinks that the YET philosophy could represent a great opportunity for Monaco in the future to be the first state to launch a proper EU dual use flag.
For more information on how the YET initiative works or to register your yacht under RMI YET flag contact:
Janet Xanthopoulos: Yacht Ownership & Administration Manager
Tel. +377 97 97 21 41
Rosemont Yacht Services & Management will also be present at the Monaco Yacht Show ths year on stand N° QJ12 at Quai Jarlan.