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Old 13-11-2009, 08:05   #1
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VAT Question on Registering a Boat

Hello,

The boat I own is registered in South Africa to the company that I bought the boat from. V.A.T. has not been paid on the boat. The time has now come to registering the boat in my name and I need to do it outside SA, because if I register the boat there I'll have to pay V.A.T.

I needless to say want to avoid paying the V.A.T., but what's the best way of doing just that?

Are there any smart ways to register the boat, to avoid paying the dreaded V.A.T?

In Norway the V.A.T. is 24%, so you can imagine how economically unviable paying that is for me. If it wasn't for the fact that I am returning to Norway with the boat early next year, I would register her there, because in Norway you don't need to pay the V.A.T. before you get the boat into Norwegian waters. Since I am returning home, I need to think of something smart. Does anyone have any god suggestions?
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Old 13-11-2009, 08:45   #2
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Normally you will have to pay tax when you import the boat to a county. If importing it to the EU you can pay the VAT at the first country in the EU that you arrive - so check out the relative rates of VAT.

Boat registration and payment of tax are separate issues - if you are a citizen of Norway, I would expect that you can register the boat under the Norwegian flag even if it is in South Africa and you will then have to pay VAT in an EU country on arrival in the EU
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Old 13-11-2009, 09:01   #3
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Boat registration and payment of tax are separate issues - if you are a citizen of Norway, I would expect that you can register the boat under the Norwegian flag even if it is in South Africa and you will then have to pay VAT in an EU country on arrival in the EU
Norway is not a part of the EU, so I wouldn't have to pay tax before I came to Norway, but that's not the point. I want to avoid the V.A.T. alltogether.
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Old 13-11-2009, 09:11   #4
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In that case you will have to keep the boat somewhere where there is no tax due on importation.
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Old 14-11-2009, 12:37   #5
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Keep the boat in Jersey or Guernsey - no VAT.

You might have to pay import duty but that's very modest.

As non-EU and non-Commonwealth you can't personally register a boat on the UK register but if you form a Guernsey or Jersey company you can have the boat owned by that company and the company can then register the boat on the UK (Jersey) register

All the info is on the Jersey government website

Welcome to Jersey Harbours
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Old 14-11-2009, 17:34   #6
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Keep it on the company.

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Old 14-11-2009, 17:42   #7
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Gibraltar is another possibility worth investigating.
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Old 16-11-2009, 14:10   #8
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Delaware registration advise

I am a german looking for a good company providing the a company + yacht registration in Delaware. Need adice please. Thanks
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Old 16-11-2009, 14:26   #9
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Just google Delaware yacht registration and you'll get more hits than you can shake a stick at.
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Old 16-11-2009, 14:35   #10
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I understand that some countries look askance at Delaware registrations. Can anyone tell me why? Please.

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Old 16-11-2009, 14:45   #11
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I understand that some countries look askance at Delaware registrations. Can anyone tell me why? Please.

Paige
I don't think so. It's no better or worse than Marshall Islands, St. Vincent or any other jurisdiction that makes yacht registry simple and relatively inexpensive. You still fly an American flag with Delaware registration. It's as good as any other US flagged vessel.
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Old 17-11-2009, 05:03   #12
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I understand that some countries look askance at Delaware registrations. Can anyone tell me why? Please.

Paige
I think some countries associate Delaware Companies with tax evasion and money laundering. Can't think why
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Old 17-11-2009, 06:25   #13
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No - please don't register your boat in Jersey!!!!
There is a four-year waiting list for berths over here - and cats berths especially are in short supply. Jersey Harbours advised me NOT to proceed with a boat purchase if my intention was to keep it here in Jersey.

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Old 17-11-2009, 06:30   #14
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I think some countries associate Delaware Companies with tax evasion and money laundering. Can't think why
Hey Dave,

Are you sure you haven't got Delaware mixed up with one of those Channel Islands places???
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Old 06-01-2010, 19:27   #15
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If you are planing to live aboard and can prove you have no other home it is classed as a home and is VAT free... its a House Boat.
When you come to sell VAT is liable, is it holding an EU CE mark....???
If not that's another snag you'll hit when you want to sell.
Where do you plan on basing the boat... that could make a difference....
If Norway is not in the EU you'll only get hit for tax again when you get there.
Flag her in Anguilla, take her to the Med and base her in Spain or somewhere and winter her in Tunisia that will renew your 18mth VAT immunity
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