Bahamas Tax on Yacht Sales

Some six months ago, we advised the outgoing owner in respect of a substantial yacht.Local Bahamas tax advisors insisted we completed the sale not just outside theBahamas territorial waters (12 nm offshore) but also outside the Bahamas ExclusiveEconomic Zone (EEZ) for VAT reasons (the Bahamas imposes a standard VAT rate of10%). There were specific reasons why VAT was said to apply; namely, the outgoingowner was a Bahamian company registered for Bahamian VAT.
However, we are now being advised that all yacht sales should be completed outside theBahamas territorial waters and outside the Bahamas EEZ to avoid triggering a 10% taxunder the Stamp Act 2024.
It is not agreed that the Stamp Act 2024 should (or indeed does) apply to vessels, but ourcurrent recommendation is to complete sales in international waters. As a matter ofpracticality, this means closings will take place within the US EEZ, and this seems to beaccepted practice.
Completing within the US EEZ will not trigger a Florida Sales and Use Tax (which, in anycase, is capped at $18,000 per transaction and is likely to be far more cost-effective thancruising 200 nm into the Atlantic Ocean!).