VAT question on sale of boat

[rh81]

Be careful with the VAT in the French Territories and the Canary Islands - they belong to the European Community but NOT to the European Tax Community.
They are what we call in Germany a "Drittland". When it comes to Taxes and VAT they do not belong to the EU

[Prairie Chicken]

Wolfgal wrote:

Once VAT is paid (and you can prove it), the boat can stay in Europe with a Canadian or American flag.

As long as the boat maintains its Vat-paid status (see Boatman 61's response), you can sell it in Europe and in European places (Martinque/Guateloupe, etc.).

This VAT-paid status goes, with the boat, to the next owner in case of sale. This is when VAT is paid once.

however, if the boat leaves Europe and doesn't check into a European port along the way for an extended period (not sure of time frame here - anybody?), VAT will need to be paid again, upon return to Europe, if you intend to stay.

The VAT itself varies a bit from country to country (between 17 and 37%). Depending on where you are or where you go to pay VAT, you can save a bit.

VAT is determined by the value of your boat - what you paid for it basically.

All of the above is consistent with my understanding of VAT.

[rh81]

The boat looses its VAT-paid status after 3 years outside the european tax community.

Entering into Martinique or Guadaloupe does not help as taxwise they do not belong to the EU.

[boatman61]

I still feel that time spent in the French islands that are considered a 'Part of France' does not adversely affect/detract the boats VAT status.
I bought a French registered boat in SXM and there were no VAT or other problems.. other than time as everything had to go to France .

Guadeloupe (/ɡwɑːdəˈluːp/; French pronunciation:*​[ɡwadəlup]; Antillean Creole: Gwadloup) is an insular region of France located in the Leeward Islands, part of the Lesser Antilles in the Caribbean. Administratively, it is an overseas region consisting of a single overseas department. It has a land area of 1,628 square kilometres (629 square miles) and an estimated population of 400,132 as of January 2015.[3][note 1]
Guadeloupe's two main islands are Basse-Terre to the west and Grande-Terre to the east, which are separated by a narrow strait that is crossed with bridges. They are often referred to as a single island. The department also includes the Dependencies of Guadeloupe which include the smaller islands of Marie-Galante and La Désirade, and the Îles des Saintes.
Guadeloupe, like the other overseas departments, is an integral part of France. It is thus part of the European Union and the Eurozone, and its currency is the euro.[4] As an overseas department, Guadeloupe is not part of the Schengen Area. The prefecture (regional capital) of Guadeloupe is the city of Basse-Terre, which lies on the island of the same name. The official language is French, and virtually the entire population except recent arrivals from metropolitan France also speaks Antillean Creole (Créole Guadeloupéen).[5]

[Tricolor]

Boaty they are part of the European Union, they are part of the Euro Zone, but they are NOT part of the European Tax Union.....

Link: https://en.m.wikipedia.org/wiki/Euro...alue_added_tax

Scrol down in the link.

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[rh81]

Here you can read about the VAT status of the french territories.

https://www.zoll.de/DE/Privatpersone...ngen_node.html

[boatman61]

Originally Posted by Tricolor

Boaty they are part of the European Union, they are part of the Euro Zone, but they are NOT part of the European Tax Union.....

Link: https://en.m.wikipedia.org/wiki/Euro...alue_added_tax

Scrol down in the link.

Sent from my GT-I8190L using Cruisers Sailing Forum mobile app

Taxation


The EU does not have a direct role in raising taxes or setting tax rates. The amount of tax you pay is decided by your government, not the EU.
The EU's role is to oversee national tax rules – to ensure they are consistent with certain EU policies, such as:
promoting economic growth and job creation
ensuring the free flow of goods, services and capital around the EU (in the single market)
making sure businesses in one country don't have an unfair advantage over competitors in another
ensuring taxes don't discriminate against consumers, workers or businesses from other EU countries.
Furthermore, EU decisions on tax matters require unanimous agreement by all member governments. This ensures that the interests of every single EU country are taken into account.
VAT & excise duties
For some taxes, such as VAT or taxes on petrol, tobacco and alcohol (excise duties), all 28 national governments have agreed to broadly align their rules and minimum rates, to avoid distorting competition across borders within the EU.

[Tricolor]

I have experience with French Guiana, you cannot reset VAT status there.

Areas within the EU that are excludedEdit

Areas of Finland:

Åland[58]

Areas of France:

French Guiana[58] (VAT free)
Guadeloupe[58] (low rate VAT)
Martinique[58] (low rate VAT)
Mayotte[58] (VAT free)
Réunion[58] (low rate VAT)
Saint Martin[58] (low rate VAT)

Areas of Germany:

Büsingen am Hochrhein[58] (enclave within Switzerland, part of the Switzerland–Liechtenstein VAT area)
Heligoland[58] (VAT free)

Areas of Greece:

Mount Athos[58] (VAT free)

Areas of Italy

Campione d'Italia[58] (VAT free)
Livigno and the adjacent Italian waters of Lake Lugano[58] (enclave within Switzerland, part of the Switzerland–Liechtenstein VAT area)

Areas of Spain:

Canary Islands[58] (VAT free)
Ceuta[58] (VAT free)
Melilla[58] (VAT free)

British Overseas Territories:

Gibraltar[59] (VAT free)

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