luxury tax tagged posts

EC Chases Tax Dodging Luxury Yachts

March 9, 2018 Taxation in EU

tax on luxury boatsBRUSSELS – Greece, Malta, and Cyprus may lose their status as prime destinations for registering luxury yachts.

On March 8th the European Commission issued a statement confirming that it has opened infringement procedures against Cyprus, Greece, and Malta for their tax treatment of luxury yachts.

The alleged infringement concerns the member states establishing and enforcing guidelines which may greatly reduce the VAT applied to the lease of luxury yachts and boats.

Under current EU rules, member states are able to forego applying VAT to the supply of services which are utilized and enjoyed outside of the EU.

The three member states issued guidelines in which the larger the boat, the more of the lease is estimated to take place outside of the EU.

The rules made it easier for large yacht...

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China Enacts Tax on Luxury Cars

December 2, 2016 Taxation in China

Tax on luxury cars in ChinaBEIJING – High-price big-engined cars in China will soon face taxes of as much as 50 percent, as the government looks to reduce emissions levels and social inequality.

Earlier this week the government of China announced that it would enact a new tax on the sale of luxury and supercars, in an effort to rein in automotive emissions and control the lavish spending of the country’s elites.

The new tax will be levied at a rate of 10 percent of the purchase price of any vehicle valued at more than CNY 1.3 million (approx. USD 189 thousand).

The tax is targeted at foreign-made imported cars, and, at this stage, does not apply to any models made in China.

Luxury cars in China already face a tax based on their engine size, with large models facing taxes of up to 40 percent.

Several high-end car...

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