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Old 08-06-2011, 13:41   #1
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Vat/Tax implications

Hi,
Any advise would be very welcome. I am purchasing a new boat for delivery in May 2012 and taking over to the BVIs via Gran Canaria and The Arc. I understand that I willnot have to pay VAT if I take her out of EU water within 60 days. Hence I will arrive in Gran Canaria in July ( which
I am told is classed as outside EU waters) and will leave her there until
the start of The Arc.
3 questions

1. Is this correct ?

2. Is there any taxes I will have to pay in Gran canaria ?

3. Does anyone know who I can contact for professional advise ?
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Old 08-06-2011, 14:09   #2
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Re: Vat/Tax implications

I am assuming you are buying in the UK. If so good news because Customs and Excise have a good website to read.

HM Revenue & Customs

But you must seek advice from them in writing and you must ensure the dealer is also up to speed on what you want to do.

If you get it wrong then it will cost you 20% so quite an incentive to get it right.

Start with the C&E website.

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Old 08-06-2011, 14:36   #3
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Re: Vat/Tax implications

If you are doing so in the uk and you are a UK resident you get 2 months to export it, if you are a non-resident you get 6 months. The UK has formulated this scheme as the "sailaway" scheme see HM Revenue & Customs

Other EU countries have similar schemes and some have no formal schemes. Though the VAT rules are harmonised and in theory the same schemes should exist.

You are correct re the Canaries, It is outside the EU for VAT purposes.


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Old 08-06-2011, 14:43   #4
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Re: Vat/Tax implications

Thanks fir the advice.
Will there be any taxes in gran canaria? I will be there for 5 months ?
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Old 08-06-2011, 15:40   #5
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Re: Vat/Tax implications

No, The matriculation tax does apply to spainish residents, but that only kicks in after 180 days, ensure you dont overstay and ensure you can prove when you arrived,

Carry proof as to your ultimate destination, letters of residence, utility bills. etc.

IN general they will have no interest in VAT.

You will howver need to register the yacht on a ships register as you will need documentation. What register will you use.


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Old 08-06-2011, 15:54   #6
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Re: Vat/Tax implications

You will however have a liability if you finally come back to the UK so worth thinking about this.

Also think about any extras you intend to add to the boat yourself. It would be a shame to pay 20% VAT on say an extra sail, but you must be squeaky clean. I have been on the receiving end of a C&E grilling over importing a car into the UK and not paying VAT, which I was entitled to do. However, they really wanted there pound of flesh. Paperwork and dates are the key.

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