ΠΕΡΙΓΡΑΦΗ

This seminar is designed to clarify important VAT concepts and compliance issues faced by employees of ship management companies as well as other professionals involved in the shipping industry.

The necessity of the seminar derives from the fact that certain transactions within the shipping industry could fall under the VAT exemption. In this respect, businesses should be able to identify the transactions that fall under the exception, otherwise they could be seriously exposed from the non-imposition of VAT.

Given the above, this training will pay special attention to the provisions of Schedule 6 of the Cyprus VAT Act (which lists the transactions that are subject to zero rate/exemptions) and the respective provisions of the EU VAT Directive, by analyzing and explaining important definitions and concepts. Additionally, the trainers will refer to various sources of revenue and expenses, which are likely to leave ship management companies exposed to fines if the correct VAT treatment is not applied.

CPD

This seminar may contribute to Continuing Professional Development requirements. At the end of the seminar participants will be given a certificate of attendance confirming the total number of training hours (6,5 CPD).

ΣΚΟΠΟΣ ΣΕΜΙΝΑΡΙΟΥ

By the end of the training, participants will be able to:

• identify the VAT registration obligations
• describe key definitions and VAT treatment of ship management and related services
• explain the content of Schedule 6 of the VAT Act
• execute their VAT treatment in a proper manner and as per the legislation
• recover their input VAT when applicable
• use the correct way to implement the reverse charge procedure
• explain the procedure that must be followed to apply for correction of errors and omissions
• encourage the extensive analysis for determining whether a vessel is considered to be qualified; hence fall under the exemptions
• adopt a more conservative approach when determining whether a transaction falls under the exemption or not.

ΣΕ ΠΟΙΟΥΣ ΑΠΕΥΘΥΝΕΤΑΙ

The training is addressed to VAT professionals, CFOs, chief accountants, accountants, accounting assistants and employees who are involved, working and/or dealing with shipping companies.  

ΠΕΡΙΣΣΟΤΕΡΕΣ ΠΛΗΡΟΦΟΡΙΕΣ

Agenda

1. Overview & Basic VAT concepts and obligations (2 hrs)

• Basic VAT concepts concerning ship management services
• Cyprus VAT registration obligations
• VIES (VAT Information Exchange System) obligations
• Corrections of errors and omissions regarding submitted VAT returns

2. Services provided by SMCs (Shipping Management Companies) (2 hrs)

• Important definitions
• Typical services provided by SMCs
• Analysis of Circular 209 concerning ship management services    

3. Place of supply of services rules (30 min)

• Basic Business to Business (B2B) rule
• Special B2B rules
• Basic Business to Consumer (B2C) rule
• Special B2C rules             

4. Reverse Charge Mechanism / Double Posting Mechanism (30 min)

• Steps to follow
• The way a company should apply the reverse charge procedure
• Time of supply rules       

5. Input VAT Recovery Issues (30 min)

• Restricted input VAT
• Revenues giving right to input VAT recovery
• Mixture of revenues with and without the right to deduct input VAT
• Standard Method of apportionment
• Adjustment for capital goods (Capital Goods Scheme)     

6. VAT refund claim procedure under the EC Refund Directive 2008/9 (15 min)

• VAT refund claim procedure       

7. ECJ (European Court of Justice) cases (30 min)

• Key ECJ cases concerning the shipping industry   

8. Case study (15 min)

• Working on numerical examples for shipping businesses and determining the correct way of accounting for VAT and / or level of recoverability.