AN UPHILL BATTLE OVER THE 70% RULE
YMCA yachting dealt with an interesting case concerning a control of the 70% navigation rule outside French territorial waters.
The customs authorities accused our client of having sailed less than 70% of the trips in a given year outside French territorial waters.
However, in order to benefit from the commercial exemption and in particular the exemption from VAT on the value of the vessel upon importation, at least 70% of the trips must be made outside French territorial waters.
In order to assist our client, we requested all the documentation and managed to prove to the customs that this vessel had made much more than 70% of its trips outside French territorial waters (more than 85%).
However the determining factor was our collaboration with our partner FLYN YACHTING. This is a tracking company which, point by point, was able to determine the exact number of trips outside French territorial waters.
The customs finally closed the case without any further action, much to the delight of our client.
The joint action of YMCA YACHTING and FLYN YACHTING was decisive!
Do not hesitate to contact us if you encounter a similar problem.
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