In 2012, an Irish company bought a yacht for promotional purposes and reclaimed Vat on the buy. The boat instead found itself being used as the main ingredient of the sailing hobby of a company director. The boat was due to be sent directly to the Caribbean but instead remained in EU waters, ultimately coming to rest in Ireland and into the ownership of one of the company’s directors. Revenue moved to recover the €49,776 Vat claimed by the company as a deduction, sparking a row before the Tax Appeals Commission. 2012-2014 – Purchase and Sale of the Boat The…

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In deep: How the purchase of a yacht put an Irish company on the Revenue’s radar

The company claimed it did not have to pay Vat on a yacht because it was for personal use and would be harboured in the Caribbean. Instead, it was used by a director as a hobby and remained in Europe. The tax authority cried foul.

13th Apr, 2021 - 4 min read

Eoin O'Shea

Tax columnist

Read on for just €1

For a limited time, get your first month for €1 and unlock full access to The Currency and The Wall Street Journal – two premium memberships, one subscription.

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