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Old 25-04-2011, 11:05   #1
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USA-Flagged VAT-Paid Vessel in Med ?

Hi,Million Dollar question.......Can I buy a VAT paid boat in EU and keep there 5 years with USA flag/registration?........Thanks,Bud
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Old 25-04-2011, 11:16   #2
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pirate Re: USA flagged VAT paid vessel in med?

Yup..... VAT is paid so as long as you move it around a bit to avoid local harbour taxes that may kick in after a while you should be fine..
But Goboatingnow may know better... he's the straight man to my wing it and see...
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Old 25-04-2011, 11:18   #3
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Re: USA flagged VAT paid vessel in med?

No, unfortunately not; the VAT paid status disappears if the boat is de-flagged and re-flagged to a country not a member of the EU. If it is any consolation, the VAT paid status also disappears when a boat changes hands while outside of the EU (that happened to me).
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Old 25-04-2011, 11:23   #4
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pirate Re: USA flagged VAT paid vessel in med?

[QUOTE=Zanshin;673866]No, unfortunately not; the VAT paid status disappears if the boat is de-flagged and re-flagged to a country not a member of the EU. QUOTE]

Bummer.... that don't sound fair if VAT's already paid as the boat would then be liable for a second hit on VAT to keep it where he bought it....
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Old 25-04-2011, 11:29   #5
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Re: USA flagged VAT paid vessel in med?

Thanks for reply`s..........Whats a USA resident to do to own a boat in EU?
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Old 25-04-2011, 11:32   #6
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pirate Re: USA flagged VAT paid vessel in med?

I'd wait awhile for some more EU's to come on line.... I'm pretty sure it can be done... there's enough US flagged boats in the Med long term to make me think its feasable/possible... will you be living over here or just flying back n forth on vacations
By the way...
Welcome to CF....
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Old 25-04-2011, 11:40   #7
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Re: USA flagged VAT paid vessel in med?

i may be wrong on this but you may be able to keep the vat paid status if the boat is Delaware registered not sure of the reason why and as i only just spoke to a american in zea marina last week and as boatman61 says there is a lot of usa flagged boats in athens all with delaware reg
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Old 25-04-2011, 12:00   #8
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Re: USA flagged VAT paid vessel in med?

Open a company in an EU country and register it in the name of the company. Flag the vessel in the state of domicile of the company. UK is good because no taxes (other than VAT) and costs to register and maintain a corporate entity are minimal. A drawback to UK registration is rigorous requirements for Part 1 registration (you have to have a survey if the vessel was not previously Part 1 registered). This rigor becomes an advantage once you have completed the process.
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Old 25-04-2011, 12:07   #9
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pirate Re: USA flagged VAT paid vessel in med?

I don't think you'll need Part 1.....
Small Ships Register should be more than adequate at 25gbp for 5yrs....
No survey required...
Insurance is another matter...
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Old 25-04-2011, 12:08   #10
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Re: USA flagged VAT paid vessel in med?

Quote:
Originally Posted by Zanshin View Post
No, unfortunately not; the VAT paid status disappears if the boat is de-flagged and re-flagged to a country not a member of the EU. If it is any consolation, the VAT paid status also disappears when a boat changes hands while outside of the EU (that happened to me).
Can you substantiate this opion, please, as I have not come across it before.
I as a South African bought a VAT paid boat in Europe and have registered it in South Africa. When I was checked out first by French and then a number of times by British Customs officials they were satisfied when I produced an official Dutch document confirming that the VAT had been paid there.
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Old 25-04-2011, 12:10   #11
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Re: USA flagged VAT paid vessel in med?

Isn't VAT just another way of saying 'Sales Tax'? ie A way to tax anything of value as many times a possible.
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Old 25-04-2011, 12:16   #12
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Re: USA flagged VAT paid vessel in med?

Quote:
Originally Posted by Zanshin View Post
No, unfortunately not; the VAT paid status disappears if the boat is de-flagged and re-flagged to a country not a member of the EU. If it is any consolation, the VAT paid status also disappears when a boat changes hands while outside of the EU (that happened to me).
Quote:
Originally Posted by multihullsailor6 View Post
Can you substantiate this opion, please, as I have not come across it before.
I as a South African bought a VAT paid boat in Europe and have registered it in South Africa. When I was checked out first by French and then a number of times by British Customs officials they were satisfied when I produced an official Dutch document confirming that the VAT had been paid there.
My understanding is that VAT paid has to do with the boat and not the flagging. This is the first time that I have heard that once a boat is de-flagged it is no longer considered VAT paid. I have heard that if the boat leaves the EU for more then 3 years it is no longer considered VAT paid. I will post some links to the actual law if I can dig them up again.
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Old 25-04-2011, 12:30   #13
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Zanshin is essentially correct. If the boat is taken outside of the EU by a non EU resident, only that person can bring the boat back in to the EU without paying VAT. If ownership of the boat changes whilst outside of the EU the VAT status is lost and VAT will be payable again if the boat is subsequently reimported. I know this because I've done this!

Corporate ownership by a UK company would work with part 1 registration but I'm not sure about the Small Ship Register - I have a feeling it does not permit corporate registration (please check this).
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Old 25-04-2011, 12:40   #14
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Re: USA flagged VAT paid vessel in med?

Some Frequently Asked Questions about the rules for private boats - European commission Here is the rule on a Non EU resident bringing a boat into Europe. It has links to the specific law.

Arcady your wording is very particuilar. "If ownership of the boat changes whilst outside of the EU the VAT status is lost." My question would be different. The change of ownership is occurring in the EU so would VAT status be lost. I guess I better check this out more carefully or I could just get the boat our of the EU every 18 months.
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Old 25-04-2011, 12:46   #15
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Re: USA flagged VAT paid vessel in med?

This is a tricky one. Most posts are correct; VAT is only due on final point of sale when new or if it's imported into the EU. There are a couple of addition circumstances like a VAT paid boat being sold outside the EU and brought back in again and exporting for over 3 years. There are also some interesting exceptions like chattels which allow you to bring possession back into the EU.

The OP wants to buy and keep a boat which has VAT paid, in the EU for 5 years, don't see a problem with this, the boat registration is separate. However, the rules for the UK are here:

HM Revenue & Customs



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