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Old 05-09-2015, 20:23   #46
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Re: Why are yachts so much cheaper in Europe?

Buying steel to sail the South Pacific is a waste of precious dollars unless you are including Antarctica in your islands itinerary.
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Old 05-09-2015, 20:43   #47
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Re: Why are yachts so much cheaper in Europe?

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Originally Posted by Kenomac View Post
No, you won't have to pay VAT if you take delivery in a non VAT country or VAT exempt zone.
I understand that in many cases you can avoid paying VAT if you buy within VAT territory but with plan to sail out reasonably immediately out of VAT territory and with approval of the VAT authority.
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Old 05-09-2015, 21:21   #48
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Re: Why are yachts so much cheaper in Europe?

We bought a used cat here in the Med this year. The VAT had already been paid by first owner. We picked it up in France and are allowed 18 months in the Schengen territory for the boat, and only 3 months for us. Same applies to Kiwis and Aussies. So we applied and got 6 month Visas to stay here. Boats are cheaper here for lots of reasons as mentioned above. Economy, built here, supply and demand. You will have to pay taxes if you taker her home. But it's less than VAT which is 20%. Hope that helps
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Old 05-09-2015, 21:50   #49
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Re: Why are yachts so much cheaper in Europe?

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I just paid less than $2 a gallon for gas in VA. I have to say, I like the direction gas prices have been going. And used boats have never been cheaper. Supply and demand still works in the U.S.A.
under $2? hasn't gotten that good here, yet.

you're right. now that the oil companies have fond a way to access shale oil, supply and demand have brought prices way down (are you actually aware of the reference i was making in that post, though?). and thanks to the lousy economy making a lot of people reluctant to buy things like boats or unable to keep paying marina fees, boats have become a lot cheaper. that just shows to go you that there really is a silver lining to every cloud.
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Old 06-09-2015, 00:31   #50
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Re: Why are yachts so much cheaper in Europe?

One point no one seems to have mentioned is the recent fall in the AUD and I think the NZ dollar has followed.
This makes buying boats overseas a lot more expensive now and pre-loved local boats relatively cheaper.

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Old 06-09-2015, 03:01   #51
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Re: Why are yachts so much cheaper in Europe?

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It's all rather confusing, but apparently the Channel Islands (Jersey, Guernsey, Alderney, Sark and Herm) are not part of the UK or the European Union for VAT purposes.
But they are part of the "customs territory of the union", and when it comes to avoiding VAT that is what is important. You need to leave the customs territory every 18 month.
Interestingly Heligoland is not part of the customs territory. So that could be a place to "reset" the VAT clock when in the North Sea...
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Old 06-09-2015, 03:49   #52
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Re: Why are yachts so much cheaper in Europe?

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But they are part of the "customs territory of the union", and when it comes to avoiding VAT that is what is important. You need to leave the customs territory every 18 month.
Interestingly Heligoland is not part of the customs territory. So that could be a place to "reset" the VAT clock when in the North Sea...
There are two separate issues, but you keep trying to lump them both into one.

1. Point of sale needs to be in a VAT free economic zone such as Guernsey, Jersey, Gibraltar (good luck with Sark since they don't have a port) and the island is surrounded by cliffs and 10 meter tides) or outside the EU in order to avoid the point of sale (time of sale) VAT due.

2. Following the time of sale transaction, the new non EU owner has up to 18 months to reset the VAT clock by leaving the EU in a non EU country, it takes only a day. Guernsey and Jersey do not work for this.... But somehow Gibraltar does. Unless a customs bonding arrangement has been made via local EU authorities, then the time allowing inside the EU can be extended up to three years without leaving the EU or paying the VAT.
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Old 06-09-2015, 04:04   #53
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Re: Why are yachts so much cheaper in Europe?

We purchased our yacht in the EU, as many do.
As long as the export paperwork is done correctly, the boat is registered outside the EU, and you are not an EU resident, then you have 18 months before you need to 'export' your boat. That means simply sailing to a non-EU country, proving you have been there with marina and fuel receipts and a local entry officially stamped. Then you can sail back again (some go back the next day even) for another 18 months and so on for as many years as you like, or until the rules change.


It is also possible to have your boat 'immobilised'. If in the water, this generally means handing over the ships papers etc and the requisite forms are filled in and stamped. If out of the water in a yard, then 'you need the yard to testify that work was being performed on your boat for the period. This does not re-set the 18 month period, but the clock stops for the period of immobilisation, therefore extending that 18 month window effectively.


Hope that helps.
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Old 06-09-2015, 04:51   #54
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Re: Why are yachts so much cheaper in Europe?

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We purchased our yacht in the EU, as many do.
As long as the export paperwork is done correctly, the boat is registered outside the EU, and you are not an EU resident, then you have 18 months before you need to 'export' your boat. That means simply sailing to a non-EU country, proving you have been there with marina and fuel receipts and a local entry officially stamped. Then you can sail back again (some go back the next day even) for another 18 months and so on for as many years as you like, or until the rules change.


It is also possible to have your boat 'immobilised'. If in the water, this generally means handing over the ships papers etc and the requisite forms are filled in and stamped. If out of the water in a yard, then 'you need the yard to testify that work was being performed on your boat for the period. This does not re-set the 18 month period, but the clock stops for the period of immobilisation, therefore extending that 18 month window effectively.


Hope that helps.
Florida has much the same regarding tax avoidance (not evasion).

Any airplane, RV or boat bought in FL can be placed in the 'care, custody and control' of a 'registered repair facility' upon purchase. No tax is due until you actually use it. You get 20 days to leave the state once you regain control.

In the meantime, you can work on it, store it, and otherwise not use it, free of sales tax.

For us, on a practical level, that meant only that when we had actually finished our refit (two splashes and many sea trials later) we had to start our 20 day countdown.

That got a bit dicey when 36 hours into our maiden voyage we were given a stainless steel basket ride from the red helicopter. The boat was salvaged (total 5 days) later, and brought to another RRF for replacement of fiberglass.

We then hotfooted it (with only our staysail and a spinnaker, the others having been removed for repair, and the propshaft bent so no revs) back to the same yard; total 10 days of the 20, putting it, again, in the CCC of the same RRF we'd started in.

We qualified by getting it out of the state in less than 10 days after our departure on rehab/refit.

The FL tax folks were very accommodating - but firm - in helping us understand how to work the system. Lest you think they're subverting the FL revenue to do so, consider that LOTS of money is spent in the state, even if only stored, all of which earns taxes - workers, yards, materials bought, etc.

Very sensible...
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Old 06-09-2015, 14:43   #55
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Re: Why are yachts so much cheaper in Europe?

Bavaria are far better ones than the French makes
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Old 07-09-2015, 05:07   #56
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Re: Why are yachts so much cheaper in Europe?

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Bavaria are far better ones than the French makes
Really? In what respect?
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Old 07-09-2015, 05:27   #57
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Re: Why are yachts so much cheaper in Europe?

The notion that steel boats are prone to rust that is uncontrollable is in essence misinformation. Moderately straight forward paint systems - when applied to specification on well blasted or primed steel - will last for many years. The sea is full of steel!
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Old 07-09-2015, 05:57   #58
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Re: Why are yachts so much cheaper in Europe?

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Bavaria are far better ones than the French makes
Bavaria vs French boats is not what this thread is about. Why bring it up? The OP asked about steel boats and VAT, not the endless comparison of production boat brands.
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Old 07-09-2015, 06:24   #59
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Re: Why are yachts so much cheaper in Europe?

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Odd story. Guernsey is within the customs territory of the EU, so would not qualifay as a destination to get your VAT clock (re)started.
Guernsey, Jersey & Man NEVER were EU territory for VAT purposes.
Google "guernsey + vat".
Guernsey and VAT - Guernsey
It takes 5 seconds to get the RIGHT answer.
Less then writing MISLEADING post.
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Old 07-09-2015, 07:25   #60
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Re: Why are yachts so much cheaper in Europe?

I'm afraid that KVB is right and you are wrong. If your 18 months is almost up don't go to any of the channel islands or Isle of Man. Doing that will not restart the VAT clock. They are all deemed to be part of the EU.


Gibraltar is deemed to be outside the EU.
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