Key VAT issues in the shipping industry
25 May 2023 | 9:00 a.m. – 4:45 p.m. | 6,5 CPD | KPMG Limassol
25 May 2023 | 9:00 a.m. – 4:45 p.m. | 6,5 CPD | KPMG Limassol
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.
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.
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.
*The number of participants is restricted to 28.
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.
Registration & Contact
If you wish to register for the seminar, please complete the registration form.
Once your registration is submitted, you will receive an email stating the participation fee, including any discounts, if applicable. Kindly note that the payment should be settled at least two days prior to the seminar’s date for your registration to be confirmed.
The programme has been approved by the HRDA. Enterprises participating with their employees who satisfy HRDA’s criteria, are entitled to subsidy. Please note that there are limited seats available, therefore enrol in this seminar as soon as possible.
If you do not receive our confirmation e-mail regarding your registration, your participation cannot be guaranteed.
€270 + VAT. Net investment after subsidy from the HRDA of €110,50: €210,80 (including VAT) for all eligible participants*
*Last Date for 10% Early Bird Discount: 16/5/2023
- For more than two (3+) participants from the same company a 10% discount is available on the total cost, before the VAT and HRDA subsidy. This discount only applies for participants who enrol in the same seminar, on the same day. This discount can only be combined with the early bird discount and the HRDA subsidy, when applicable.
- For individuals/legal entities who/which register in more than two (3+) seminars during the same semester (January-June & July-December), a 10% discount is available on the total cost, before the VAT and HRDA subsidy. This discount only applies for individuals/legal entities who/which enrol in more than two (3+) seminars during the same semester, on the same day. This discount can only be combined with the early bird discount and the HRDA subsidy, when applicable.
- There is a 10% discount for alumni members. This discount should be applied before the VAT and HRDA subsidy and can only be combined with the early bird discount and the HRDA subsidy, when applicable. For more information on our alumni scheme, click here.
- There is a 10% early bird discount on selected seminars for participants who enrol in a training course until a specific date which is stated above. This discount should be applied before the VAT and HRDA subsidy and can only be combined with the HRDA subsidy, when applicable.
- HRDA subsidy for all HRDA approved seminars.
For any queries, please contact us on +357 22 207 460 or at firstname.lastname@example.org.
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).
Board Member, Indirect Tax Services, KPMG in Cyprus
Michael is a Board Member and leads the Indirect Tax function at KPMG in Cyprus. Michael has extensive experience in Cypriot and European VAT legislation, EU VAT matters and decisions of the European Court of Justice (ECJ).
He has provided professional services to several large both multinational and local enterprises of various sectors, focusing on the financial services and real estate industries. In addition, Michael has provided indirect tax advisory services to several financial and payment institutions, Cypriot investment firms, UCITS, AIFs and real estate companies.
He is also Vice-president of the VAT committee of ICPAC (Institute of Certified Public Accountants of Cyprus). Michael was involved in various projects concerning VAT automation solutions and assists in the VAT coding design and implementation. He also leads the Tax Technology development team of KPMG in Cyprus.
Michael is an instructor in various KPMG training courses and an author of indirect tax articles. In 2015, he was certified by the HRDA as a “Trainer of Vocational Training”.
Principal, Indirect Tax Services, KPMG in Cyprus
Maria studied Business Organisation and Administration at the University of Piraeus, with specialisation in Accounting and Finance. In December 2000, Maria joined KPMG Cyprus, starting as a trainee auditor in the Audit department. She is a member of the Association of Chartered Certified Accountants (ACCA) and a member of the Institute of Certified Public Accountants of Cyprus (ICPAC). Maria has provided audit services to several large local and overseas enterprises across several industries such as real estate, education and retail.
She joined the Indirect Tax department in May 2010 and since then she has provided indirect tax services to a major portfolio of clients, including entities and groups involved in tourism, passenger and freight transport, security, financial services, real estate development, the supply of goods and services.
Maria attended various international training sessions organised by KPMG’s Tax Business School as well as several local seminars. Additionally, she has been a presenter of numerous in-house audit seminars and an instructor/facilitator of various both in-house and open Indirect Tax seminars. In April 2017, Maria was certified by the HRDA as a “Trainer of Vocational Training”.
Senior Manager, Indirect Tax Services, KPMG in Cyprus
Alexis holds a bachelor’s degree in economics from the University of Cyprus and ACCA and ADIT certifications with specialisation in EU VAT. Alexis is also accredited with the VAT Compliance Diploma (UK syllabus) from The Association of Taxation of Technicians.
From 2011 to 2014, he worked at a Big-4 firm in the Indirect Tax department, where he gained experience in providing VAT advisory services to multinational companies. Since joining KPMG Cyprus in 2015, Alexis works at the Indirect Tax department in Limassol, providing VAT advisory services to major portfolio clients of the shipping, financing, real estate and e-commerce sectors, as well as to clients involved in international trades.
Additionally, Alexis has been an instructor/facilitator for both in-house and open Indirect Tax related seminars. In 2020, he was certified by the HRDA as a Vocational Training Instructor.
The programme has been approved by the HRDA. Enterprises participating with their employees who satisfy HRDA’s criteria, are entitled to subsidy.