Following an update to the EU’s ‘Union Customs Code’ (UCC), Spain has reinterpreted the rulebook governing TPA (Tráfico de Perfeccionamiento Activo), or ‘Inward Processing’.
The key change in Spain’s regulation for yachts is the removal of the requirement for non-EU flagged vessels to exit the EU upon completion of work carried out under TPA, in order to avoid customs duty and VAT on repairs or maintenance.
In other words, it is now no longer necessary for yachts to depart Spain for Melilla, Gibraltar, or any other ex-EU port, after refit work has been completed. The TPA can now be closed by calling at any other customs port in Spain in transit, or by simply sailing twelve nautical miles offshore into international waters.
The change came into effect in September, in order to make refit in Spain more attractive to foreign owners.
TPA enables non-EU owned and flagged yachts to carry out repairs and maintenance while in the EU, without paying 21% VAT. Only authorised yards in Spain, France, Monaco and Italy are able to facilitate work under TPA.
Work carried out must be overseen by a licensed administrator and comply with strict fiscal and customs regulations, with detailed reports submitted to customs and excise authorities.
Thanks to Cristina Martinez of Yacht Projects for this update.