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Old 07-02-2012, 02:48   #1
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Taxes for Buying Second Hand , VAT Not Paid , Boat in Martinique

I am an EU citizen wanting to buy a boat in Martinique marked with "vat not payed". Anyone knows What are the taxes to be payed by the buyer, and what limitations are imposed for traveling if not paying vat or other possible taxes.
Thanx people!
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Old 07-02-2012, 03:06   #2
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While it is inside the EU, Martinique has a vat free status like the canaries. You can buy the boat less vat plus any applicable locals taxes. On arrival at any European port you will have to pay the vat immediately.

As a EU citizen you cannot benefit from any vat relief like temporary import relief. Of course you can sail anywhere outside the EU to your hearts content
Dave
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Old 07-02-2012, 04:26   #3
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Quote:
Originally Posted by goboatingnow
While it is inside the EU, Martinique has a vat free status like the canaries. You can buy the boat less vat plus any applicable locals taxes. On arrival at any European port you will have to pay the vat immediately.

As a EU citizen you cannot benefit from any vat relief like temporary import relief. Of course you can sail anywhere outside the EU to your hearts content
Dave
That depends on who owns the boat and where it has been registered. You can normally only register a boat in your own country, but when you erect a company in another country, say Marshall Islands, then that company can buy the boat and register it there. That boat would be able to visit the EU just like any other foreign boat without paying VAT.

ciao!
Nick.
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Old 07-02-2012, 07:54   #4
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Re: Taxes for buying second hand, VAT not paid, boat in Martinique

No nick, thats very difficult. The rules say "beneficial owner". If its clear that you are the effect the beneficial owner ( i.e. you live on it) then the rules apply.

Equally wrapping up a boat in a company can be difficult.

It may work for big yachts with tax attorneys and lawyers, it doesn't work for the small boat , owner run, ( Ive been there)

Dave
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Old 07-02-2012, 13:59   #5
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Unless you yourself are not a EU registered individual (anymore).

Then it works like stated by Nick.
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Old 07-02-2012, 14:15   #6
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Re: Taxes for buying second hand, VAT not paid, boat in Martinique

How much is the Vat?
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Old 07-02-2012, 14:26   #7
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http://www.tmf-vat.com/vat/eu-vat-rates.html

It depends.
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Old 07-02-2012, 14:38   #8
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pirate Re: Taxes for buying second hand, VAT not paid, boat in Martinique

Used to be 17.5% of purchase price... though have known customs to refuse this and have vessel valued by surveyor at market price in UK...
Friend got stung like this on a $25K boat that got valued at £35K....
Only other option is if your like me and of no fixed abode anywhere it can be imported as place of residence... or so rumour has it...
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Old 07-02-2012, 14:42   #9
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Re: Taxes for buying second hand, VAT not paid, boat in Martinique

Nick and Goboatingnow might be both correct. I handled the affairs of a foreign boatowner and a foreign registry. The VAT was exempted for something like over a year. (At that time)
I got the official docs from customs and nobody asked me whether I was owner, user or whatever. It depends how you present yourself.
Fact is that if you want to own and use the boat in the EU area, you have to pay up VAT within a certain timeschedule unless you buy the boat as a business objective and having the correct corresponding VAT number.
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Old 07-02-2012, 15:16   #10
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If , and in fairness it's an unlikely if, you get a vat inspection. And you are in a relatively small boat with a EU passport and it's obviously your boat. Then all the corporate paperwork in the world will not protect you. vAT laws give officials virtually god like powers. At the very least it's seizure of the asset.

As an EU citizen you have no grace period. All imports into the union must be vat paid on release from customs ( the law I believe allows 3 days) this applies to whether is a 30 euro widget or a 30,000 boat. only non tax residents have a concession and that's only specifically for boats.

My advice is of you intend to cruise the EU, factor in the VAT

Dave
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Old 07-02-2012, 15:42   #11
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Re: Taxes for buying second hand, VAT not paid, boat in Martinique

There are many possible scenario' s. But you ar right, someone, sometime has to pay the VAT.
There is a way out, but that is subject to the local VAT administrators.
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Old 07-02-2012, 15:53   #12
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Exactly

It is prudent to factor on the VAT and then try to avoid it.
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Old 07-02-2012, 16:30   #13
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Quote:
Originally Posted by goboatingnow
While it is inside the EU, Martinique has a vat free status like the canaries. You can buy the boat less vat plus any applicable locals taxes. On arrival at any European port you will have to pay the vat immediately.

As a EU citizen you cannot benefit from any vat relief like temporary import relief. Of course you can sail anywhere outside the EU to your hearts content
Dave
Yes, in the canaries there is no VAT, but there is IGIC whic is 13% and then there is registration fees of 12% for a decent vessel, and trust me the guardia civil enforces it, they will go onboard sooner or later, seen them a lot of times do that. Add these two and you get a scary number...

Sailing in Spain is for the rich or for the adventurous who place their boat as a company asset, no tax to be payed at all, and never use the boat for personal enjoyment, in fact the owner of the company cannot even give commercial tours on his own boat, must hire someone else, trust me the tax agency needs your money.
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Old 07-02-2012, 16:41   #14
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In answer to the original post, it would be worth enquiring if the same rules apply to boats as to motor vehicles. In certain cases the VAT is levied at the market value rather than the original cost. Just contact the VAT office they will be glad to help.
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Old 07-02-2012, 16:50   #15
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Re: Taxes for buying second hand, VAT not paid, boat in Martinique

if you are an eu citizen and intend using the vessel inside the eu the best idea would be to buy a vat paid vessel in the eu,thus avoiding lots of hassels,at a discounted price,due to the recession!
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