The case relates to a harbour in Segler-Vereinigung Cuxhaven which was seeking to have the same rules applied to its facilities as that provided by caravan sites that
are used on a temporary basis.
There are some similarities, as well as significant differences involving water, between yachts and motorhomes but both are designed to provide moderately comfortable overnight accommodation when they are hooked up to facilities at their destination. However, caravan sites are expressly covered by the reduced VAT rate, whereas harbours are not.
The CJEU has ruled that the harbour at the mouth of the Elbe cannot apply the reduced rate to its mooring facilities. In its judgement the court ruled that yachts are nothing like caravans. The social purpose of the reduced rate is to provide accommodation, and yachts are not principally a place to stay. Moorings are not intrinsically linked to accommodation, but are a way of making sure your yacht does not float away while you are asleep or on land. They are the provision of parking rather than camping facilities, and as such do not qualify for the reduced rate.
VAT legislation can be complicated and its interpretation is subject to EU case law so make sure you take expert advice when considering the position for your business. Our VAT experts have experience of taking cases to the CJEU and ensuring that rulings are correctly interpreted. Why not give them a call today if you need assistance.
