VAT, foreign purchase and registration

[l2ustyl3ullet]

Originally Posted by El Pinguino

Not sure where I read it but saw a thread recently about doing just that. That centre bulkhead down the back is not structural... ie... it doesn't hold the deck up.... it doesn't give much privacy either ... it's just a sheet of ply...

Guess thats all the information I would need really. If its not structural, then all good. But yeah, like Kenomac say they are probably thrashed. Would be nice if yacht world had a owners model vs charter model tickbox for the filter but I can't seem to find a way to exclude the charter models.

But overall seems we have gotten to the bottom of what was confusing me. Not a resident of the EU so can sail under the Dutch Flag not have to pay VAT, and by doing so avoid Cat 1 issues, but probably best I don't actually sail home to NZ to avoid paying some hefty taxes. Or do and pay the taxes. Would be nice to one day come home, as NZ is a nice sailing location that I haven't really explored (as is usually the case with your own home), and I do want to be a full time live-aboard so would be nice to take my home back with me.

[UPSPEED]

Originally Posted by Kenomac

Do you also have a New Zealand passport, or only the Dutch passport? If you also have a New Zealand passport, why not just use that one?

I also have dual citizenship, but that doesn't mean I need to use two passports.

Originally Posted by l2ustyl3ullet

Guess thats all the information I would need really. If its not structural, then all good. But yeah, like Kenomac say they are probably thrashed. Would be nice if yacht world had a owners model vs charter model tickbox for the filter but I can't seem to find a way to exclude the charter models.

But overall seems we have gotten to the bottom of what was confusing me. Not a resident of the EU so can sail under the Dutch Flag not have to pay VAT, and by doing so avoid Cat 1 issues, but probably best I don't actually sail home to NZ to avoid paying some hefty taxes. Or do and pay the taxes. Would be nice to one day come home, as NZ is a nice sailing location that I haven't really explored (as is usually the case with your own home), and I do want to be a full time live-aboard so would be nice to take my home back with me.

Hello Kenomac,

You seem to be very well informed about sailing an ex-VAT vessel within the EU for longer periods of time, so I wonder if I could pick your brain a bit for tips and wisdom?

I have a 1-year old Bennie 41.1 purchased, registered and flagged in the Netherlands under the ex-vat Temporary Importation Rules as I am both a non-eu citizen and non-eu resident. I'm south-american and plan to keep the vessel within EU-waters for the next 4 years before sailing away from Europe.

Currently I have roughly 9 months to go before the 18 months ex-vat clock expires and I've been struggling to determine if I need to change my vessel's flag to a non-eu country (Delaware for ex) before the expiration of 18 months to keep it ex-vat.

I'd love to keep the Ducth flag on my stern upon return of my vat-clock reset on the Jersey Island later this summer, however I'm concerned about the legality of "re-importing" the vessel to the EU with the same NL flag I initially registered the boat with?

I've read through Articles 137 to 144 of the EU Customs Code as well as Articles 553 to 562 of the implementing provisions of the Customs Code, but it says nothing about flagging vs VAT.

Any thoughts and suggestions would be highly appreciated!

Safe travels!

Upspeed.

[Piscis]

Sorry for highjacking... but this thread has already some very informative advises and i dont want to open another thread with similar contents...

Is there anywhere in the www a site that provides comprensive information of tax situation in the different countries when purchasing a yacht?

As many future boat buyers, i try to avoid VAT payment when buying a boat and planing to take it out of the country of purchase.

Information about how long a purchased boat might stay in the country before VAT is due. Limited to those countries that are know for a high amount of boats on the market for sale i.e. all caribean countries, USA, Seychelles, Thailand, ....

Considering that a purchase from a resident of a specific country is, of cause, VAT due in any way, except for EU commercial use.


Thanks!

[GTom]

Depends on your residency: if you are EU resident, in EU territory you are immediately liable to VAT - unless you establish a company.

[Piscis]

Thanks Tom. Yes, thats what i mean with "commercial use". When i buy a boat in the EU and leave it/put it there commercially in charter, i am not bound to pay VAT.

And i know there are ways, when buying a new boat from i.e. FP, they offer "Gibraltar delivery". Lagoon has something similar to get the boat delivered outside EU waters to avoid VAT.

However, beside those EU stationed boats.... how about all the other countries known for having a lot of boats on the market? If one buys a Yacht in Thailand, the Seychelles or any Caribean country. I suggest every country has different rules on how VAT is applied if a EU or US citizen buys a boat there and register the boat i.e. in a european country and plans to export that boat.
What are the ussual time frames the buyer can use that boat in the country of purchase befor he has to leave to avoit VAT?

Thanks!

[Piscis]

Originally Posted by GTom

Depends on your residency: if you are EU resident, in EU territory you are immediately liable to VAT - unless you establish a company.

BTW... does "EU territory" includes French Polynesia and other French overseas territories?

[GTom]

Originally Posted by Piscis

BTW... does "EU territory" includes French Polynesia and other French overseas territories?

No: https://en.wikipedia.org/wiki/Europe...ax#EU_VAT_area

"Overseas collectivities" includes French Polynesia, Saint Barthélemy, Saint Martin, Saint Pierre and Miquelon, Wallis and Futuna.

BTW, the EU VAT area and the EU territory are not the same. There are non-EU territories, that belong to the EU VAT area (such as the Isle of Man) and a few territories that belong to the EU but not part of the EU VAT system: Martinique, Canary Islands may be the most important ones for the cruiser.

[Piscis]

Thanks Tom!