Issues with broker and tax

[bewi]

Hi all,

We are trying to purchase a boat from an Italian charter company (Italian flagged boat), I am a New Zealand citizen, our broker is saying that we need to create a company to transfer the title of the boat to.

The boat is VAT not paid, I was under the impression that if the boat went into my name as an individual, registered under the NZ flag, and exported out of the EU within 18 months we would have no issues with paying VAT or with the company selling the boat.

I have scoured the web for answers and preferably a lawful document with little success, could someone point me in the right direction? Or possibly correct my understanding?

Many thanks

[Kenomac]

If you purchase the boat inside the EU VAT zone the VAT is due, there's no 18 month grace period. Your only option is to take delivery of the boat in a non EU country such as Montenegro which is close by Italy. But the previous owner will need to agree to deliver the boat outside the EU before the money changes hands. The VAT or IVA in Italy is due at the point of sale, there's no way around it if the boat is sold in Italy.

[yiannis]

Originally Posted by Kenomac

If you purchase the boat inside the EU VAT zone the VAT is due, there's no 18 month grace period. Your only option is to take delivery of the boat in a non EU country such as Montenegro which is close by Italy. But the previous owner will need to agree to deliver the boat outside the EU before the money changes hands. The VAT or IVA in Italy is due at the point of sale, there's no way around it if the boat is sold in Italy.

This is correct but also keep in mind that leaving for a very short time and returning to the same country may be regarded as an abuse of this regulation and is best avoided.

[bewi]

Thanks for your replies!

We accepted the idea of having to start a company for the boat ownership, Australian company with Australian registered boat. Has anybody on here purchased a VAT not paid boat from a charter company in Italy and gotten away with avoiding paying VAT?

[Kenomac]

Originally Posted by bewi

Thanks for your replies!

We accepted the idea of having to start a company for the boat ownership, Australian company with Australian registered boat. Has anybody on here purchased a VAT not paid boat from a charter company in Italy and gotten away with avoiding paying VAT?

Then why did you ask? I've never heard of that scheme. Won't you be required to pay extra fees and legal expenses?

[George DuBose]

Outlaw philosophy here:

Just get a copy of the purchase invoice for a lesser amount and pay the VAT.

[taxwizz]

Originally Posted by George DuBose

Outlaw philosophy here:

Just get a copy of the purchase invoice for a lesser amount and pay the VAT.

Don't get caught.
Revenuers are not as stupid as you think.
Just sayin'

[Kenomac]

Bewi,

You're getting some really bad advice on this thread and from your broker. Just take delivery outside the VAT zone, it's your easiest, most foolproof option. That's what we did.

But it sounds like your mind is already made up, not sure why you even asked the question to begin with. Setting up a fraudulent charter company as a foreigner to avoid VAT (IVA), then posting it on the internet doesn't seem like a very smart thing to do, the Italian tax authorities aren't dumbies.... you'll be seeing their boats everywhere.

[jacktheflyer]

Originally Posted by bewi

Thanks for your replies!

We accepted the idea of having to start a company for the boat ownership, Australian company with Australian registered boat. Has anybody on here purchased a VAT not paid boat from a charter company in Italy and gotten away with avoiding paying VAT?

Don't know why you need to own the boat through a company. I've done this as the boat was originally to be used for charter (in
Australia). That didn't work so now just use it privately. The company cost a couple of thousand dollars to set up and we are also burdened with a $245 from ASIC every year. I wouldn't do it again fro private ownership.

[Jabudays]

Buy her in a company name, that way you can claim the depreciation which would be a lot and help you cover any income earned in the same company