MOORE STEPHENS

MOORE STEPHENS BJAV Marine Limited 26-28 Athol Street Douglas Isle of Man IM1 1JB Our Ref: 001825—GA—TARJ Date/ax Point: 01 January 2015 Tax Invoice No: 106022 Moore Stephens Trust Company Limited Jubilee Buildings, Victoria Street Douglas, Isle of Man IM1 251i T +44 (0)1624 699108 F ♦44 (0)1624 699001 VAT Registration Number 001 3729 24 BJAV MARINE LIMITED Professional services rendered in connection with: GBP VAT VAT GBP Provision of an Isle of Man place of business for the 12 months to 31 December 2015. 3,000.00 20.00 600.00 The compliance maintenance fee for 2015. 500.00 , 20.00 100.00 Preparation and submission of the annual Isle of Man income tax return. 300.00 ' 20.00 60.00 VAT Agency Fee for the 12 months to 31 December 2015. 1,500.00 / 20.00 300.00 Value added tax 1,060.00 TOTAL 6,360.00 Payment may be made either by : 1) Direct Transfer Bank details for direct transfer are: Account Number - 58884047 IRAN no - GB58R8OS18588058884047 Sort Code — 16-58-80 BIC - RBOSIMDX The Royal Bank of Scotland International Limited 2 Victoria Street. Douglas. Isle of Man, IM99 2) Cheque Please send to the address above. PLEASE STATE INVOICE NUMBER TERMS: Payment Is due on receipt of the invoice EFTA01106889 VAT SOLUTIONS FOR YACHT OPERATING BUSINESSES This information sheet covers the main issues faced by yacht operation businesses that register for Value Added Tax (VAT) in the Isle of Man. It outlines the main VAT liabilities arising from the operation of your yacht business and the rules and procedures involved. 1. Can I register my yacht operation business for VAT in the Isle of Man? Yes. The Isle of Man (IOM) is treated as a part of the UK for the purposes of the EU Single Market, introduced in the European Union (EU) with effect from 1st January 1993. Therefore IOM businesses enjoy practically the same rights as UK and other EU businesses. By locating your yacht operation in the IOM. you can acquire awlhe benefits that VAT registration confers on a business within the EU. The key requirement for VAT registration is that you demonstrate to Isle of Man Customs & Excise (IOMCE) that y yaceht operation business is clearly set out on a commercial basis: You do not have to be an Isle of Man incorporated yacht owner to register for VAT. However, if incorporated elsewhere you will need to have a "place of business" in the 1OM. Entering the IOM Foreign Companies Register and having a local business address fulfill this requirement. For this purpose we would required the following Registration Documents: - Duly certified copy Memorandum and Articles of Association or equivalent constitutional documents. Certification must be either by the original Companies Registry where company was formed or by an officer of the company under oath. If the original document is not in English then it must be translated into English; — Full list of the officers of the company; and - Government registration fee of (currently) £160 2. What is involved in the VAT registration process? A specified application for VAT registration has to be completed and submitted to IOMCE together with a completed Yacht Questionnaire. The purpose of these forms is to enable IOMCE to assess the suitability of the applicant to be registered for VAT as a business and to identify the yacht and where and how it would be carrying out charters. Additionally, the following support documentation has to accompany the application for VAT registration: — Covering letter describing the proposed venture — Detailed business plan — Bill of Sale/Purchase Invoice — Boatyard's/Builder's agreement (if vessel is under construction) — Certificate of vessel registry (if completed vessel) — Central Charter Agent Agreement — For Charter Vessels (MCA Certificate or equivalent) — For Charter Vessels (copy of current insurance certificate showing specific authorisations) — Intended or actual contractual arrangements with end users — For leased vessels (lease agreement) Upon receipt of a valid and supported application for registration, IOMCE issue, usually within 7 to 10 days, a VAT registration number, unique to that person, and a Certificate of Registration showing the registered person's details. In particular, the Certificate of Registration indicates the periods for which the person will be required to submit VAT retums. 3. What about registration of the yacht itself? Strictly speaking, the "flagging" of a yacht owned and used as a business asset is only of secondary importance to the VAT man. Of far greater relevance is the commercial purpose to which the yacht is put. However, registering your yacht under a particular flag (e.g. under the British or Red Ensign flag available in several jurisdictions Including the O MOORE STEPHENS TRUST COMPANY 1 27 October 2010 EFTA01106890 TRUST COMPANY LIMITED VAT SOLUTIONS FOR YACHT OPERATING BUSINESSES IOM) is considered a mark of high quality and proof of adherence to international maritime laws. Thus the registration of your yacht may have wider commercial implications for your charter business. Because registration is essentially a vessel's passport to sail international waters, it is an area that needs to be carefully considered and dealt with well in advance of delivery and — preferably — in advance of ownership. 4. What happens when I purchase my yacht from an IOM/UK/EU supplier? You will either be charged VAT (in the case of an IOM/UK supplier) or will be required to account for acquisition tax (in the case of an EU supplier to whom you have quoted your VAT number). So if you are a business or you intend to operate your yacht as a business within the EU, you should ensure that you are registered for VAT before you purchase your yacht. 5. What is "acquisition" and "acquisition tax"? "Acquisition" is the word used to describe a purchase from an EU member state other than the one in which you are registered for VAT. "Acquisition tax" is the VAT liability that arises from this acquisition. If you are registered for VAT in the UK/IOM and you purchase a yacht from an EU supplier, your acquisition tax is payable in the destination country of the yacht. Normally this means that your new yacht must sail from your supplier's state to the UK/IOM. But, if you are a VAT registered UK/IOM yacht operation business you can, under EU legislation (the 'fall-back` provision), account for acquisition tax on your new yacht without the yacht having to physically sail to the UK/IOM. 6. What does accounting for acquisition tax Involve? This involves submitting a VAT return evidencing the acquisition of the yacht. As with other goods, it does not necessarily mean that you need actual cash to pay your VAT liability to IOMCE. This is because as a business you are also entitled to deduct the VAT for which you are liable immediately. Matching the liability to pay and your right to deduct in the same VAT return can neutralise the tax. Once the acquisition of the yacht has been satisfactorily evidenced, Customs & Excise will issue your business with VAT paid documentation, which you should carry onboard yacht at all times. The VAT paid documentation ensures that so long as your business remains the owner of the yacht, it will not be required to account for acquisition tax in any other EU member state. For the planning and execution of such an intra- Community acquisition of the yacht, which yields a VAT paid status for the yacht, we charge a specific fee. 7. Can I account for acquisition tax if I purchase my yacht from a non-EU source? No. You will generally be required to account for import VAT at the port of the first entry of the yacht into the EU. And in the UK/IOM you can only account for import VAT via Customs entry if the yacht physically sails into the customs port in the IUK/IOM. We plan and execute direct importation of the yacht into the UK/IOM for yachts that choose to enter the EU through the UK/IOM. We charge specific fee for this service. However, there is a perfectly legal alternative route to use if for logistical or other reasons the yacht cannot physically sail into an UK/IOM port. This is called Onward Supply Relief (OSR) or, more commonly, the '4200 procedure". Essentially, the yacht has to sail to the port of first entry in the EU to be processed and issued with Customs stamped import documents. Because the yacht owning entity would already be registered for VAT in the IOM where the import VAT due would ultimately be accounted for, Customs at the first port of call in the EU would conditionally suspend the VAT liability due on import. O MOORE STEPHENS TRUST COMPANY 27 October 2AN) EFTA01106891 VAT SOLUTIONS FOR YACHT OPERATING BUSINESSES We use Malta for OSR because they currently impose the least onerous conditions on the procedure and because Customs there are specifically committed to this procedure. For the planning and execution of the OSR procedure, which yields a VAT-neutral status for the yacht, we charge a minimum inclusive fee. 8. What about Temporary Importation? Under EU law, a yacht intended for charter cannot generally be brought into EU waters under "temporary importation" (TI) arrangements. However, if the yacht is to be used privately by non-EU established persons identified as such to the authorities then it may be admitted into the EU for up to a period of 18 months. The yacht must be registered outside the EU and there are other restrictive conditions. If the yacht is entering the EU for repair or refit it can do so under a different kind of Customs procedure known as Inward Processing Relief (IPR — "perfectionnement act?' in French). IT and 1PR yachts are not entitled to access some of the tax advantages reserved for VAT registered or commercially operated yachts. 9. And what about the French Commercial Exemption (FCE)? Under FCE it is permissible for a commercial yacht to operate in France without a liability to French VAT if the yacht: - possesses a Commercial Registration Certificate issued by any sovereign Ship Registry — has a permanent crew, and — operates bona fide commercial charters at all times. The problem is that FCE is only valid in France. Also, because there is no identity documentation to evidence adherence to this regime, your yacht may be open to attack by other EU Customs authorities where you plan to carry out charter operations outside French territorial waters. There are also significant constraints on private or non- commercial use of the yacht under FCE. Also, the European Commission has recently declared the FCE as not compliant with the wider EU VAT law and directed that it be changed. Therefore the most assured option for a commercial yacht looking to charter in the EU is to operate within the VAT system by registering for VAT. 10. Why should I register for VAT and what rights and obligations follow from such registration? Registration is a key aspect of EU VAT law and practice. By registering, a person joins the register of taxpayers held by the authorities. It is also through this registration that a person's returns and payments (or reclaims) are made. Each registered person has a unique nine-digit VAT registration number and in the UK/IOM this number is prefixed by the "GB" country code. Registration for VAT may be determined by two sets of factors. Firstly, there is a compulsion to register where the authorities determine that a person has become liable to register. This liability may be triggered by factors such as their turnover in the EU or whether they acquire a yacht already being used for charters in the EU, which they intend to continue to operate in the EU. Secondly, a person may choose to register under certain circumstances. Both sets of factors apply to yacht owners operating in the EU, but the second set of factors tends to be more common. Owners would choose to register in the IOM as part of their risk management to avoid being obliged to register in a different EU country (e.g. where the yacht actually sails), where registration would most likely trigger a liability to other types of taxes — corporation tax, wealth tax, capital gains tax, etc. These taxes do not apply in the 1OM. More crucially, yacht owners would register to avoid being deprived of the right to deduct input tax that they incur on their purchases within the EU. This includes the input tax on the purchase or importation of the yacht itself. That right to deduct VAT only comes with registration for VAT. Registration also enhances the status and the standing of the owning company, which is then recognised as an EU-established business. O MOORE STEPHENS TRUST COMPANY 3 27 October 2010 EFTA01106892 TRUST COMPANY LIMITED VAT SOLUTIONS FOR YACHT OPERATING BUSINESSES The above rights of a VAT registered person are matched by corresponding obligations, notably the obligation to charge VAT when it is due under the rules and to maintain proper accounting for VAT on an ongoing basis through regular VAT returns. Please be aware that by registering for VAT in the IOM, IOMCE will require the business records in full to be produced for inspection at the business address within the Island. They also prefer to have the bank account details of the registered person on the Island. Accordingly, we would normally recommend that a bank account for VAT-related transactions is opened in the IOM. 11. What Is involved in maintaining proper VAT accounting and keeping the VAT registered person in good standing? Legally, VAT returns can be made monthly, quarterly or yearly. In practice, most VAT returns are made quarterly, although some registered persons may opt to make their returns monthly if they are consistently in a repayment position - i.e. if their trading position is such that they are regularly reclaiming VAT from C&E rather than paying it. We would normally inform you of the VAT period for each company and the applicable deadlines once your company is registered. At the end of each VAT period, we need to fill in a VAT Return for the VAT registered yacht owner. A return tells IOMCE: — how much VAT it charged to its customers, and how much it owes to IOMCE on other supplies it has made — how much VAT it is entitled to claim back - the amount of VAT it must pay to IOMCE or the amount of VAT it can get repaid by IOMCE - the total amount of sales (charters) and purchases it has made - the total amount of goods sold to customers or purchased from suppliers in other EU countries. Your business accounts for VAT on an accrual basis, not on a cash basis. This means that all invoices issued or received with dates falling within the accounting period must be brought to account, regardless of whether they have been paid or not. You should include all such invoices in the information that you send to us for the VAT return. 12. What are the applicable deadlines for filing VAT Returns and making or receiving payments? There are specific deadlines for making VAT returns and they normally fall on the last day of the month following each VAT period. Any VAT payments to Customs are payable at the time when the return is made; however repayment of reclaims are made only after Customs have received and accepted each retum, usually within 2 weeks of making the return. IOMCE do impose various penalties for returns that are made consistently late. It is also normal for IOMCE to want to visit a registered person's IOM business premises at least once every 2 to 3 years to inspect the business records and accounts. 13. What If I don't get any charters in a particular VAT period? It is not an offence for there not to be charters of a registered person's yacht for a while. But, as for any business, Customs do expect the search for opportunities to be real and genuine. Where no charters are secured in up to one season they would want to know why and would require evidence that the search for charters during that period has been earnestly pursued. They may request such evidence in the form of website advertising; offers received and rejected; relevant copy correspondence, etc. 14. If my company buys and operates a yacht for third-party charter on which it has deducted VAT, can I personally use the yacht too? Yes, but you must do so on commercial terms. Remember that the basis on which your yacht operation company will be registered for VAT in the IOM is commercial. This means that it should be evident from the company's records that it seeks to either make a return on the investment O MOORE STEPHENS TRUST COMPANY a 27 October 2010 EFTA01106893 VAT SOLUTIONS FOR YACHT OPERATING BUSINESSES in the yacht over a reasonable period, or at the minimum seek to recover the capital outlay and the costs incurred in repair and maintenance over the period of the business venture. Therefore if you as beneficial owner wish to use the yacht occasionally or otherwise, you will be deemed to be the charterer or hiree and should expect to be charged by the company at the normal commercial rate. Like other EU authorities, IOMCE are very sensitive to abusive use of the VAT system. They have therefore issued the following important statement in respect of the use of a yacht within a charter structure by the individual who funded its purchase: For the avoidance of doubt, unacceptable charter structures may be challenged on the grounds that they meet the two-part test for abuse. Where the features of an unacceptable structure are not present (le. where the vessel is chartered to third parties with sufficient continuity and substance to meet the business test as well as being chartered to the owner) it follows that the structure will M amount to an abusive practice. In these circumstances the VAT treatment of use by the owner well follow the normal VAT rules i.e. the same VAT treatment that applies when the yacht is chartered to third parties." This means in effect that they will not insist that the beneficial owner of the yacht pays VAT on his use of the yacht, so long as that use is within the strictly normal commercial context in which the yacht operates. However they would expect the usual charter contract with commercial rate to be put in place, with the VAT registered legal owner actually receiving payment of the sum in full. On the other hand, yachts operating within the VAT system that are used - solely by the individual who funded its purchase (directly or indirectly); and/or - by a person or persons "connected" to that individual; or — if it is chartered to third parties as well, the third party chartering activity lacks sufficient continuity and substance to meet the 'business test' may be deemed to be abusive. 15. How are the charters that I provide treated for VAT purposes? VAT applies to yachts as both goods (the yacht itself when it is purchased) and services (the exploitation of the yacht for income on a continuing basis). We have explained above why it is essential for the legal owner of a yacht that will operate charters in the EU to register for VAT in the EU; how to bring the yacht into the system and account for VAT on its hull value so that the yacht is recognised as "EU goods' with free circulation rights in the EU. We also covered the rights and obligations of the legal owner within the VAT system and the benefits of operating within the wider EU VAT regime, as opposed to the parochial tax exemption or the limited tax suspension, regimes. But it is also important to understand how the chartering services that you provide are treated for VAT purposes. This is because even though you are registered for VAT in the 1OM, the yacht will be sailing and providing charters across the EU. The key is in the "place of supply" rules. VAT on services is generally paid at the place where the service is supplied, which often coincides with the place where the supplier is established. For charters of yachts and other means of transport, however, the rules do differ according to whether the yacht is on "short term" hire (where the hiree has continuous possession or use of the yacht for up to 90 days) or "long term" hire (where the hiree has continuous possession of the yacht for over 90 days.) Tax is due on short term hire at the place where the yacht is actually put at the disposal of the customer; whereas for long-term hire it is at the place where the hirer is established. You are more likely to provide short-term charters, so in principle your VAT liability falls where your yacht is physically located for that purpose. This incidentally is an advantage, because places like France and Italy, for the time being at least, do not require any VAT to be charged on such charters under specified conditions that you would likely meet. Therefore your charter activity would neither in practice be subject to VAT there nor in the 1OM. O MOORE STEPHENS TRUST COMPANY 5 27 October 2010 EFTA01106894 TRUST COMPANY LIMITED VAT SOLUTIONS FOR YACHT OPERATING BUSINESSES So your IOM VAT registration enables you to be legally exempt from charging VAT on your charter business if your commercial yacht is located in France (or Italy or Malta), while giving you the right to deduct VAT on some major costs across the EU. This makes the administrative duties and costs associated with maintaining your VAT structure well worthwhile. 16. What if my charter activity takes place in Spain or Greece? Both Spain and Greece do not allow VAT free charters in their territorial waters. Moreover, these countries have extra rules as to licensing of charter activity and the flagging of your yacht. Complying with their extra requirements often means payment of additional taxes. Therefore if your yacht is to be located in these countries, you should seek specific advice to ensure that you are happy to bear these taxes. Your charter yacht can nevertheless visit these countries, so long as the charter actually begins and ends outside. You can also use your GB VAT number to secure VAT exemption on supplies received from local suppliers under the general VAT rules. 17. As a VAT registered person, what types of supply can I normally expect to get tax free and where? VAT is a consumption tax often charged at the point of purchase. However, there are additional rules when supplies are made between two VAT registered entities within the EU. UK Suppliers As the UK and IOM are deemed to be the same domestic VAT area, goods and services purchased from UK suppliers should normally include VAT. Because your business is registered for VAT in the UK/IOM it can recover UK/IOM VAT charged by suppliers on its VAT returns, subject to the normal rules. Goods purchased from EU VAT Registered Suppliers (Not including UK/IOM) The majority of goods purchased by your business from EU VAT registered suppliers can normally be zero-rated for VAT purposes under intra-Community rules, as long as: o Valid EU VAT registration numbers for both parties are shown on the invoice concerned; and o The goods in question are removed from the EU territory of purchase or installation. Therefore, when goods are purchased from EU VAT registered suppliers, your business should routinely provide the supplier with a copy of the VAT registration certificate and (if required) commercial yacht registration certificate. 18. Given the French Commercial Exemption (FCE), what can I expect when making purchases of excisable goods from French suppliers? Excisable goods Include fuel/lubricants, alcohol and tobacco products. Under FCE, French Customs have determined that yachts are only entitled to VAT free fuelllubes, alcohol and tobacco if they are engaged in the performance of a valid charter contract at the time of purchase. VAT and heavy penalties are increasingly being imposed on yachts that have taken these items VAT free but cannot provide relevant evidence. If your yacht is operating under a current charter contract, your business should provide any French supplier with: - A copy of the VAT registration certificate. - A copy of the commercial yacht registration certificate. — A crew list, and — A valid charter contract. If your yacht is NOT operating under a current charter contract it may still benefit from the intra- Community VAT exemption on purchases from ship's chandlers, refit works and other contractors — for example, suppliers of spares/parts. You should provide the French supplier with: - A copy of the VAT registration certificate, and - A copy of the commercial yacht registration certificate. O MOORE STEPHENS TRUST COMPANY 4 27 October 2010 EFTA01106895 TRUST COMPANY LIMITED VAT SOLUTIONS FOR YACHT OPERATING BUSINESSES Yes. 19. What is so peculiar about excisable goods and why are there special rules in the EU? Excisable goods are subject to excise duties in addition to VAT. Apart from being governed by extra rules under EU law, they are a significant source of public revenue in all EU countries. Consequently, the supply of these products is subject to strict controls. Under the VAT legislation, all EU member states should exempt from VAT "the supply of goods for the fuelling and provisioning of vessels used for navigation on the high seas and carrying passengers for reward or used for the purpose of commercial, industrial or fishing activities..? However, most EU member states interpret and apply this provision such that the exemption applies only to merchant and cruise ships. This is because these vessels generally and regularly ply their trade in 'the high seas". Indeed, the European Court of Justice case law has tended to favour this interpretation. France is fairly unique in allowing owners of commercial yachts to make tax-free purchases of fuel and other excisable goods under their official FCE rules. Italy and Malta have largely followed the French example so far (requiring identical evidence from qualifying yachts); but because their rules are less yachting-specific, suppliers of these goods there vary in their approaches on the matter. We would simply recommend that if your yacht meets the requisite conditions you seek out suppliers who are able and willing to supply these products tax- free in these countries. Tax-free excisable goods are generally not available in the UK/IOM, Spain, Greece, Germany, the Netherlands and most other EU countries, except in very specific circumstances where your yacht makes a "fuel stop" and you can provide satisfactory evidence that the yacht will depart the EU immediately after. 20. Are there any goods and services on which I cannot avoid VAT even with my IOM VAT registration? Certain goods and services purchased from EU suppliers will be subject to EU VAT that cannot be avoided. This list includes, but is not limited to: - Purchases from supermarkets and other local shops, which use electronic point of sale receipts - where the supplier is unable to produce separate VAT invoices. - Land based fees, such as utilities (water and electricity and gas), port and harbour fees. - Goods that are not removed, normally within 30 days, from the EU territory of purchase following purchase or installation. The types of purchases described above are generally for values that are small in nature compared with other purchases. Although there is a legal mechanism which allows for VAT registered businesses to recover EU VAT incurred on such purchases, the process is complicated and time consuming. It may not be cost-effective to undertake for the amounts of VAT involved. We would recommend, where any EU supplier (not including UK/IOM) considers charging VAT on significant purchases of goods and/or services, that you contact our office so that we may advise according to the situation. 21. What about goods that I purchase outside of the EU? Goods purchased by your business whilst your yacht is outside of the EU (e.g. in the Caribbean) would not be subject to EU VAT. It may be possible that a local sales tax would be charged and where this happens recovery will be unlikely. 22. When the yacht is in the EU and I purchase goods from non-EU suppliers, which I then import, do I have to pay VAT? Yes. Goods purchased from non-EU based suppliers by your business, which are then imported into the EU would normally be subject to import VAT and duty at the point, and in the EU country of importation. O MOORE STEPHENS TRUST COMPANY 27 October 2010 EFTA01106896 TRUST COMPANY LIMITED VAT SOLUTIONS FOR YACHT OPERATING BUSINESSES However in certain circumstances — e.g. where a tender or spares to your commercial yacht are to be imported into the EU - we would normally advise and intervene on your behalf so as to achieve tax-free importation. 23. What happens when as a VAT registered person I sell my yacht? The VAT treatment will depend on where the yacht is at the time when you sell it, as well as the VAT status of your customer. Three possible scenarios are: i.) IOM/UK VAT registered operation sells the yacht to an IOM/UK/EU customer and the yacht is in EU waters at the time of sale. VAT is due to be declared on the sale by the /OM operation in the member state where the yacht is located. Where the purchaser is in the UK/IOM, IOMCE would accept a transfer of going concern (TOGO) treatment if the relevant conditions are met. TOGC ensures a VAT-free sale of the yacht, but the procedure must be managed skilfully . The customer must register for VAT with IOMCE too and provide evidence of its intention to continue a similar charter business. ii.) IOM VAT registered operation sells the yacht to any customer and the yacht is outside EU waters at the time of sale. This supply would be outside the scope of EU VAT and no VAT would be due on the sale provided the IOM operation could show that the yacht had left EU waters at the time of sale. However, it the yacht were to return to the EU, VAT would be payable by the new owner at the first port of entry in the EU. iii.) IOM VAT registered operation sells the yacht to another yacht operation business that is registered for VAT in another member state and the yacht is in the other member state's waters. If the VAT number of the customer has been provided and shown on the sales invoice then VAT need not be accounted for by the /OM operation. The IOM yacht operation business would complete an EC Sales List and the customer would declare on their VAT return, in their member state, acquisition tax on the yacht. Several other scenarios are possible. Therefore you should consider these matters carefully and notify us before you sell your yacht. 24. What happens to my VAT Paid documentation when I sell my yacht? You should return any VAT Paid documentation to IOM Customs. The documents are valid only for you and in no circumstances should you transfer them to the purchaser of your yacht. 25. What do I need to do then to de-register my company for VAT? If de-registration Is appropriate, you will need to submit an application to IOMCE. In order to process this application and approve deregistration, IOMCE would need to be satisfied that the sale of the yacht used in the business has been properly and correctly accounted for. The information above is only an outline. It is based on information available at the time of writing which may not be current at the time of reading. It is not intended to be comprehensive and so may not be relevant or appropriate to specific needs or requirements. No responsibility can be accepted to any party seeking to rely on the information provided. In all cases you should seek professional advice specific to your circumstances. For further information, please contact Ayuk Ntuiabane or Grant Atchison: MOORE STEPHENS TRUST COMPANY liTED Box 25, 26-28 Athol Street, Douglas, Isle of Man 1BD Telephone: Facsimile: E-mail: 00 44 1624 662020 00 44 1624 662430 [email protected] Licensed by the Isle of Man Financial Supervision Commission as a Corporate Service Provider Moore Stephens Isle of Man is an independent member firm of Moore Stephens International Limited 0 MOORE STEPHENS TRUST COMPANY 27 October 2010 EFTA01106897 MOORE STEPHENS TRUST COMPANY LIMITED VAT Procedure 4200 00P via Malta Captain's Guide 1. BEFORE (a) - Exchange Captain telephone numbers and e- mail addresses with Maltese Agents; - Advise Maltese Agents of yacht entry into Malta - we will attend to this; - Advise Maltese Agents of berthing requirements for stay in Malta based on vessel dimensions. (b) We need the foHowing documents in hand - they should be provided immediately if they have not yet been sent to us: - Last few pages of the Vessels' Log book which cover the period 1 week prior to arriving in Malta; - Copy current Insurance policy; - Copy Certificate of Vessel Registration: "'Copy purchase contract; „ie Copy Bill of Sale from previous owner to Company for valuation purposes. It is very important that an entry for the sale of the Vessel is made in the logbook and dated when in International Waters and prior to arrive/ in Malta. The narrative for the logbook entry may read as follows: Transfer of ownership from XYZ (8V0 to )O(X Limited (IOM) - Bill of Sale dated (date in International Waters)" 2. DURING (a) On arrival in Malta, the captain should contact the Maltese Agents and prepare the following for inspection: - Original and complete Log book; - Original insurance policy; • Linginal Certificate of Vessel Registration. Separately, we will provide the Maltese Agents with an invoice and a nominal Bill of Sale for valuation purposes. The Maltese Agents will also help the Captain to complete a 1 page importation form on board. (b) The Maltese Agents will then co-ordinate the boarding and inspection of the Vessels and their documentation by Maltese Customs and Excise. (c) Following the inspection and processing of documentation by Maltese Customs, importation documentation will be issued to the captain and clearance for departure will be granted. 3. AFTER (a) Following departure, the Vessels should steam directly to another EU port; (b) The captain may be asked to present the importation documentation obtained in Mate to the customs authorities in the next EU port; (c) The captain should also obtain evidence of entering another EU country (docking slip, berth bill, port authority confirmation and such like will do) and send it either to us or directly to the Maltese Agents. This wit complete the obligations of the captains in respect of importation. The information above is only an outline. It is based on information available at the time of writing which may not be current at the time of reading. It is not intended to be comprehensive and so may not be relevant or appropriate to specific needs or requirements. No responsibility can be accepted to any party seeking to refy on the information provided. In all cases you should seek professional advice specific to your circumstance& For further information, please contact us: MOORE STEPHENS TRUST COMPANY SITED Box 25. 26.28 Athol Street, Douglas, Isle of Man IM99 1BD Telephone: FacsknIle: E-mail: 00 44 1624 662020 00 44 1624 662430 mail emoorestephens,co,im Licensed by the Isle of Man Financial Supervision Commission as a Corporate Service Provider O MOORE STEPHENS TRUST COMPANY I 3ImMweh 2009 LIMITED EFTA01106898