What does "Taxes Not Paid" actually mean?

[boatingnewbie]

I have been looking at different boats for sale... catamarans, etc.

I notice in most listings it will say "Taxes Not Paid" next to the asking price.

I'm confused by what this actually means...

For example, if I am in Florida but buy a boat located elsewhere, is the "Taxes Not Paid" just referring to the taxes that will be owed by the buyer in addition to the sale price? i.e. I'd owe sales tax to Florida (I believe they currently cap them at $18K)?

OR is this referring to additional taxes that the buyer would have to pay where the boat is located, let's say if the boat is located in the Cayman Islands?

This is all a bit confusing. Thanks for any insights.

[roverhi]

This may be a European thing as there is a hefty VAT tax that is payable on a boat bought in country. I'm sure that people are taking offshore delivery for boats not intended to return to the Euro Zone. Also there is a short term tax exclusion for people buying a Euro boat that are non Euro citizens and don't intend to have the boat remain in the Euro Zone.

Could also be for US import duties. You often see a notation 'not for sale in the US' which is required for a foreigh boat/seller who wants to sell a boat here but doesn't want to pay the import duty. The duty may be due immediately whether the boat is sold or not if they don't include that in the listing.

[boatingnewbie]

Originally Posted by roverhi

This may be a European thing as there is a hefty VAT tax that is payable on a boat bought in country. I'm sure that people are taking offshore delivery for boats not intended to return to the Euro Zone. Also there is a short term tax exclusion for people buying a Euro boat that are non Euro citizens and don't intend to have the boat remain in the Euro Zone.

Could also be for US import duties. You often see a notation 'not for sale in the US' which is required for a foreigh boat/seller who wants to sell a boat here but doesn't want to pay the import duty. The duty may be due immediately whether the boat is sold or not if they don't include that in the listing.

It's all very confusing!

And, yes, I saw a listing that said something like "Not for sale to US citizens" or something like that. Will they still sell it to a US citizen, but the buyer would have to pay the import taxes?

[roverhi]

Originally Posted by boatingnewbie

It's all very confusing!

And, yes, I saw a listing that said something like "Not for sale to US citizens" or something like that. Will they still sell it to a US citizen, but the buyer would have to pay the import taxes?

AFAIK the problem is a foreign seller could be responsible for import duty whether they sell the boat or not if they don't put in an exclusion for US citizens if they and/or the boat are in the US. A US citizen would be responsible for the duty, if any, buying a foreign boat. Doesn't mean that they wouldn't sell the boat to a US citizen, just that the seller doesn't want to pay the duty. A US Citizen would have to find out what any taxes would be on a non US boat and figure that into the price offered.

[john61ct]

Seller may need to pay the US tax / import fee in advance if they intend to sell to USians.

So if a EU buyer closed that would be money thrown away.

So yes they'll sell to USians, but add the tax / fees to the price.

[boatingnewbie]

Originally Posted by roverhi

AFAIK the problem is a foreign seller could be responsible for import duty whether they sell the boat or not if they don't put in an exclusion for US citizens if they and/or the boat are in the US. A US citizen would be responsible for the duty, if any, buying a foreign boat. Doesn't mean that they wouldn't sell the boat to a US citizen, just that the seller doesn't want to pay the duty. A US Citizen would have to find out what any taxes would be on a non US boat and figure that into the price offered.

According to this link I found with a quick search it states import duty of 1.5% would be due on a foreign sailboat purchased for personal use:
https://help.cbp.gov/app/answers/det...e-into-the-u.s.

[Tingum]

You do not say where you are looking at these boats. Each case is different, you should ask the lister, not a forum.

[out42]

Ask the seller or broker, as it varies with the boat and the country. Usually in Europe it means VAT not paid, which, if you wish to keep it in Europe means an extra 20-25% on top of the stated price, depending on country.

[moseriw]

depends on the country but basically it means what it says. The boat is not customs cleared in the country where it is.

May cause customs clearing and import GATT customs tariff ratev and VAT to be paid.

Be careful in the EU. If the boat is not "a community member" and you want to import it you have to maske a CE certification regardless of the boats age ( Bl.. f... stupid idiots out there)

[Ferrari]

This is all a bit confusing. Thanks for any insights.[/QUOTE]

It is slightly confusing, but logical.
Some yachts are not tax paid anywhere and cruise the world, leaving juristrictions before tax is liable. Perfectly legal. Anyone buying one of these vessels would be liable for a sales tax in their country if importing it. Or else purchase the vessel while its in International waters and continue to roam the world tax free.
A “tax paid yacht” would also be subject to a sales tax in the country of importation if different from the original jurisdiction.
So some yachts will never pay a sales tax by using “temporary importation” which varies from country to country and can be a long as 10 years in Mexico or as short as 6 months in other countries. Temporary importation rules usually do not allow the vessel to be sold in that jurisdiction.
Ie; a yacht in the US under a temporary import permit is not allowed to sold there, but some are using a work around to advertise a yacht for sale. Geographically where the sale is consummated, determines where or if an import / sales tax, is due.
Other yachts may have already been taxed several times as new homes are found in new countries. Each time at a lesser value as the vessel is deprecated.
Temporary importation or visas are not usually available to owners in their own country or residence for obvious reasons.
Hope this is useful
F

[Dave22q]

No safe way to translate that vague language. If seller will not clarify run away!

[jmschmidt]

US import duty on boats is miniscule compared to the EU VAT. South African built boats are exempt when imported into the US, as are boats and many other products from a number of 2nd and 3rd world countries. Don't mean to be pejorative with the 2nd and 3rd world reference, just no other way to say it. This forum is getting so PC.

[hellosailor]

As roverhi said.

When you are venue hopping and there is any question, any legitimate broker or seller should be able to answer the question. "What do I have to do and pay to get this boat USCG documented? Is that even possible?" or even "Exactly what taxes have not been paid?"

Sometimes a "visitor" has left their boat someplace and decided to sell it, which then requires the boat be formally "imported" into that country, duties or tariffs imposed.

If you can't get a simple and direct answer, move on. Why gamble?

[jmschmidt]

US Coast Guard documentation is only available to US citizens, or companies under the control of US citizens, for recreational pleasure boats, regardless where built, for boats of 5 Gross Registered Tons (GRT). If you are reasonable intelligent and ALL YOUR PAERWORK IS IN ORDER, you can do it all online and pay the fees by credit card at the National Vessel Documentation Center website. Remember if the website that comes up does not have www.dco.uscg.mil in its URL you have reached a site that will scam you for extra fees. There is no need to pay anyone a big fee for this.

[john61ct]

The CG docs are not the issue.

Even a "miniscule" duty tax or fees to get the boat into the buyer's jurisdiction needs to be known before proceeding.

The warning is there to mean "as it is now I am not allowed to sell to USians"

It is in the seller's interest to help if they know, but ultimately the buyer's responsibility.