On 20 June 2019 the ECJ has ruled that the supply of an offshore jackup drilling rig does not qualify as a sea-going vessel. This means on the one hand that such drilling rigs cannot be (locally) supplied under the zero VAT rate and on the other hand that supplies of provisioning goods and services related to such drilling rigs also no longer qualify for the zero VAT rate. Given the considerable value of drilling rigs in general, the impact on cash-flow and working capital should not be underestimated.
Source: PwC
For a full summary of the case, click HERE
