The yachting industry has long anticipated the day when the European Commission would increase the pressure on those EU member states offering yacht owners a means of mitigating their VAT exposure. That day came on 8 March 2018 with the announcement by the European Commission of infringement proceedings against Malta, Cyprus and Greece.

For more details of such proceedings, please see http://europa.eu/rapid/press-release_IP-18-1451_en.htm.

Whilst these proceedings will almost certainly be resisted by the member states affected, it is unclear what effect it will have on such schemes in the future.