Originally Posted by rkjbnz
Looking to purchase a boat currently in the Med. The tax has not been paid and the idea is to just pay the purchase price
and ship it out. I realise I have to pay duty and GST once its in NZ but Im wondering how long I have to export the boat before being liable for tax. Also if I buy the boat in France
and have to move it to Italy to ship it will I then be hit with tax at Italy.
Also I am a little curious as to how a boat can have tax not paid, apparently its a private boat never been in charter so I would have thought tax was payable when it was first purchased? If the owner was somehow able to defer tax for a set time threshold and that threshold is getting near would that also apply to me, as in owner deferred for 18 months decides to sell it at 17 months that leaves me 1 month to export it or else I have to pay the tax?
Anyone have knowledge of a scenario like this or at least be able point me to someone who does?
If you are a non-EU citizen, you will be required to de-register the vessel from it's current
registry and re-register it under another flag.
In our case we bought a French registered vessel (Tax unpaid) and registered it as an NZ vessel. If we ever get the boat back to NZ, we will be up for GST on it (we have thought about trying the Resident Returning option to avoid this). At this stage, returning to NZ is a long way away.
In the interim, we continue to sail in and out of the EU where we are treated like any other foreign flagged vessel ie. we can enter and sail in the EU for 18 months before a VAT event is deemed to exist and to prevent that we just leave and reset that 18 month clock (we normally sail in Greece
for 3 months and then move to Turkey
(where the boat can remain for 5 years, but you have to renew the Transit log annually)).
There is a catch for Greece
, where supposedly we can only sail for 6 months in any 12 month period or they may fine us (contrary to EU law, but that's Greece for you), but as we clear out every 3 months, we have yet to run into that issue.