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Old 31-03-2013, 12:32   #1
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Paying tax on boat purchase

I am purchasing a boat in Martinique. The price is 180000 eu before taxes. It was my understanding that the only tax I would pay, is if I bring the boat back to the US. I am a US citizen, and will register US, but plan to keep the boat in the Caribbean.
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Old 31-03-2013, 12:51   #2
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Re: Paying tax on boat purchase

In general you will pay a sales or excise tax when you bring the boat back to a US state. Most states will give you a grace period of up to 90 days. It has been reported on CF that in FL if you are not state registered somewhere then you don't have the grace period. YMMV.
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Old 31-03-2013, 12:54   #3
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Re: Paying tax on boat purchase

I have no plans to bring the boat back to the US. I plan to stay in the Caribbean for a couple of years and sell the boat when done. Anybody pay any taxes under those circumstances? I got a little worried after reading about a 20% VAT.
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Old 31-03-2013, 13:14   #4
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Re: Paying tax on boat purchase

Actually it is a use tax in lieu of sales tax but at the same rate as the sales tax that you will encounter if you bring the boat to the US depending on where you bring it. Also depending on where you bring it there might also be periodic excise tax.

These are moot if you never bring it back.

VAT? Certainly not by the US. Don’t know about local laws where you will be sailing.
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Old 31-03-2013, 13:22   #5
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Re: Paying tax on boat purchase

Thanks. I just found some other posts with info. Now, I'll have to see if there are any local taxes and fees.
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Old 31-03-2013, 14:20   #6
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Re: Paying tax on boat purchase

Even if there were local taxes on the island you are in, you can consummate the transaction offshore. Then it will be up to the buyer to decide where they want to keep the boat and what taxes may be involved.
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