European VAT on '83-and-Older Vessels?

[goboatingnow]

is your boat VAT paid and are you in European waters

if you are refering to me, then yes and yes and I have 28 years in inter community trading including commercial yachts. ie both VAT and non-VAt paid boats coming in from inside and outside the EU

Customs officiers can be good, bad or indifferent. In my first hand experience, people that have VAT problems where trying something dodgy.

As in your example there is no problem, if you buy your boat in Turkey, and you are a EU tax resident, the minute you sail into a EU port, VAT is due, end of story no buts. ( note that Turkey now has a Customs agreement with the EU, if you buy your boat in Turkey from a turkish dealer and you fill in all the complicated forms and get pre-approval from customs, the boat is regarded as in free circulation and VAT is not due when entering the EU, but its complicated and not for discusion here),

This is why I write this blog and have this discussion ; I have no intentions to take my boat (currently in USA) to Europe till I am 100 % clear on custom issues.

you write a blog , ??

The main reason that the issue is unclear is that most posters have no idea really what they are talking about or relate what happended to them and there experience is specific to their circumstances, which sometimes they arnt truthful about. The other is what "people have Heard" or other nonsense. Reallu unless someone is prepared to come on here and debate first hand their VAT issues, the rest is hearsay. In my first hand experience, people that have VAT issues, were trying something dodgy.


The situation regarding VAT in the EU is very very clear. In you are a not a EU tax resident ( irrespective of citizenship) and your boat is not in the EU, then you have a generous 18 months under the Temporary Importation Relief scheme in which to sail around teh EU before VAT is due. TI can be extended under local rules to 24 months and where specific country rules allow can be extended further ( usualy with lots of conditions)

Simple end of story, vist the EU anytime no problems


If you are a EU tax resident, then immediately on entering the Customs Union of the EU , VAT and customs duties are immediatley payable ( well they will give you eough time to get to a bank). You pay the VAT at the first EU port ( though Customs can agree to allow you to travel to your destination port , as "new means of transport", which your boat is, VAT is technically only paid in the country of destination, not arrival) VAT is calulated on the financial value of the boat, so depreciation is allowed, but you have to reach an agreed value with customs.

Simple.

Case 1 no_VAT for 18 months, Case 2 pay VAT immediately, thats all you need to know for the usuall straightforward cases

Again end of story -> simple.

[barnakiel]

Just a reminder - the VAT issues are same within the EU Vat region (which happens to include the Azores but somehow not the Canaries).

So if planning something VAT related PLS check the status of a particular place regardless of what EU flag you see the first thing in your first EU port.

Just saying this because I meet so many EU and otherwise sailors who are so so so very unhappy (like many ARC participants that starts from Gran Canaria) to pay VAT / tax on boat goods imported to Canary Islands from continental EU (in fact - one can at times dodge the tax by marking the parcel 'boat in transit, still a customs clearance agent is often required to receive the parcel which costs quite a lot of $EUR).

So, BEWARE!

b.

[Xpets]

This is what we all need to know ; clear answers from knowledgable people who can help well willing idiots like myself in this complicated changing but very important issue.

Thanks both.