Originally Posted by simonmd
Yes, they are simply advertising the boat as 'tax not paid' as some of the carribean islands come under EU tax regulations
and of course, fo any potential EU citizens wishing to buy with a view to returing to Europe
with it. For you, it won't apply, asside from any local import
tax that you may have to pay to bring her to the US that is.
Your post is correct but doesn't tell the full story. Anyone reading this should be aware of the difference between mainland Europe for VAT purposes and European Overseas Territories for VAT purposes, which usually have VAT rates far lower than their mainland counterparts.
If a boat has had European Overseas Territory VAT paid (in a Caribbean
island such as Guadeloupe
for example) and the boat is then taken to a mainland European country by a mainland European, the boat will become liable for the difference between the European Overseas Territory (Guadeloupe, etc, as applicable) VAT rate and the mainland European country of import applicable VAT rate.
VAT rates in Overseas Territories were very low last time I looked. Something like 4%. Mainland Europe VAT rates are typically in the region of 20%. The advantages to a purchaser were obvious and that's why the tax authorities closed the loophole.