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Old 29-12-2008, 14:01   #1
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Valuation of boat for VAT purposes

Hi. I am currently building my boat in South Africa and intend to take it to the Med next year. I know that if I leave it in the EU for more than 18 months I will have to pay VAT, but how is the value of the boat determined? I have a vague idea of how much it has cost me, but because I have done most of the work myself, my cost is mainly the materials and kit that went into the boat. Also is there a big variation in the VAT charged in various EU countries, and if I pay VAT in one country, do the other countries accept this as a closed case then?
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Old 29-12-2008, 17:41   #2
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Why pay VAt at all, ? Aviod it by leaving for the winter every 18 months
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Old 31-12-2008, 03:44   #3
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I'm just wondering about the cost of continually moving the boat out of the EU every 18 months vs the price of paying VAY once and for all?
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Old 31-12-2008, 04:32   #4
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Hi, Once you have paid VAT in one of the EUcountires and have a VAT receipt it is good for all of the countries. Note that the rate of VAT is different for many of the EU contries so you need to check where you will get the best advantage as there will be other costs involved e.g Registration, etc .

Here is a list of current VAT rates. EU VAT Rates | TMF
Note Gibralta is not in the EU and there are other exceptions.
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Old 31-12-2008, 05:23   #5
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I was told by a broker in Spain that if you go to Gibraltar, which I am told is not part of ther EU and get receipts for petrol etc that tolls the time in the EU.

Oyther places nopt in thre EU are the Channel ISlands.

IN the US I have to leave for 2 weeks every year before I renew my yearlong cruising certificate so a similar mechanism may apply.


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Old 05-01-2009, 10:55   #6
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Quote:
Originally Posted by espresso View Post
Hi. I am currently building my boat in South Africa and intend to take it to the Med next year. I know that if I leave it in the EU for more than 18 months I will have to pay VAT, but how is the value of the boat determined? I have a vague idea of how much it has cost me, but because I have done most of the work myself, my cost is mainly the materials and kit that went into the boat. Also is there a big variation in the VAT charged in various EU countries, and if I pay VAT in one country, do the other countries accept this as a closed case then?
Once you have paid VAT you are issued with a VAT paid certificate that is valid throughout all the EU countries. The cheapest place at this time is the Azores at 13% or Madeira at 14% but that is dependant upon their valuation of your boat. I have heard of production boats being valued at less than 50% of their market value but that is the risk you take.
As someone else said above if you are not an EU citizen I wouldn't bother paying it at all. There are numerous places you can escape to each year, get your passport stamped and then return.

I collected my boat from Cape Town last year and as I'm an EU citizen I have no choice but to pay the VAT. 13% of your boats value gives you one hell of a lot of additional cruising budget (which you will need when you see the costs of marina's).
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