australian buying a boat in EU and registering in langkawi

[Moonos]

Hi,

I just wanted to clarify buying a boat in EU and registering it in Langkawi and sailing slowly to Langkawi.

Some boats have VAT paid and some don't. How does that affect me?

What about a new boat purchase... How will that affect me?

I understand the situation of registering in Australia I pay 10% GST but that's not what I want to do.

Also, then later if I visit Australia on the way to how long can I be in Australia before someone wants me to pay GST and change the registration?

[Factor]

Been down this path a few times. As an Australian Citizen (I presume you are) you are obliged to register the boat as an Australian Boat. You commit an offence if you dont. This has NO impact on GST. GST is only payable on entry to Australia. As an Australian Citizen its payable on entry - no way around it.

Below is an excerpt from a previous thread on this matter: BTW I am not the john in the email, that was another member. And when AMSA mention the thread they are specifically talking about a thread on this forum where some stated quite strongly that the law didnt apply to them

Hi John,

Thank you for your e-mail. I have looked at the forum you provided the link for and it’s quite concerning with all the incorrect information being provided. I can confirm that a vessel that is Australian owned and sailing to or from an international home port must be registered on the Australian General Shipping Register with AMSA. Other countries may entitle foreign ownership, but Australian owned vessels on foreign registers are in breach of the Shipping Registration ACT 1981.

To register a vessel on the Australian General Shipping Register (I base this advice on the assumption that this vessel is a pleasure craft, not being used for commercial operations), please complete the attached set of forms:

• Application for Registration (AMSA form number 168)
• Declaration of Ownership and Nationality (AMSA form number 208)
• Notice of Appointment of Registered Agent (Ship’s Manager) (AMSA form number 157)
• AMSA Builder’s certificate (AMSA form number 211) or
• Statutory Declaration Builder’s Certificate (AMSA form number 222)

The first two forms are self-explanatory.

The 'Notice of Appointment of Registered Agent' form must be completed as legislation requires that each vessel on the Australian General Shipping Register must have a Registered Agent. The agent is basically the managing owner or operator of the vessel, and can be the owner.

The builder of the vessel should complete the Builder's Certificate. If you are unable to have the builder complete the Builder's Certificate (that is, if they have gone out of business or you cannot contact them) then a person skilled at describing a ship can complete the 'Statutory Declaration for Builder's Certificate' instead. A description of the vessel MUST be supplied. The statutory declaration can be completed by you, a boat builder, surveyor, shipwright or any other individual skilled at describing a vessel. Please be aware that the Statutory Declaration must be witnessed by someone on the list of authorised witnesses and who has a connection to Australia. Please refer to the Attorney-General’s Department website for more information at: https://www.ag.gov.au/Publications/P...atorylist.aspx.

Other documents required:

• An original or a certified copy of the Bill of Sale from the seller
o AMSA form number 159 may be used, which I have attached to this e-mail, should you find this easier. However, if you have a different bill of sale, that’s fine. As long as it has the same fields answered as the attached AMSA bill of sale; and
• Deletion Certificate (e-mailed copy of this is fine)
o This document is required if the vessel was on a foreign registry.

The fee for Australian Registration is $1,554.00 for a ship permitted to be registered. This is a one-off fee. There is no annual renewal fee. More information on fees is available at https://www.amsa.gov.au/vessels-oper...istration-fees

Once the above documentation is in order, please scan and e-mail them to sro@amsa.gov.au for inspection, prior to posting the originals, to avoid processing delays due to incorrect or incomplete information. From there, once all documentation has been inspected, you would then be welcome to post the originals to the address below, as we require original documentation and cannot accept or process documents received via fax or email.

In terms of the time it will take to complete the Australian Registration, you should be aware that it is a two-step process; once your documents and fee are received, we will issue you with a Marking Note, which has instructions for the marking of the vessel with the name, official number, home port and length overall. When the Marking Note is received back at the office, this will complete the process.

Kind regards,

Pat O'Brien
SHIPPING REGISTRATION OFFICER
ON BEHALF OF THE SHIPPING REGISTRATION OFFICE

82 Northbourne Avenue, Braddon ACT 2612
GPO BOX 2181, Canberra ACT 2601
p 02 6279 5925
e sro@amsa.gov.au
w www.amsa.gov.au

[Moonos]

Thanks Factor,

Yes I am an Australian citizen. Seems there is a bit involved.

If it is australian registered do i need to pay vat to sail through eu or remove it from eu?

A boat that has VAT not paid I assume I will need to add that to the price?

[boatman61]

No.. if you are taking it out of the EU it is classed as an export so no VAT is due if a new or a charter boat that you have bought..
The boat has 18 months.. You have 90 days.

[Moonos]

Originally Posted by boatman61

No.. if you are taking it out of the EU it is classed as an export so no VAT is due if a new or a charter boat that you have bought..
The boat has 18 months.. You have 90 days.

Awesome, thanks boatman

So possibly i could leave EU for a few weeks before the 90 days expire, then return to grab another 90 days of visa and then take the boat out of the EU?

If it had VAT on the sale price is it possible to claim it back as an export from EU?

If I then continued and eventually arrived in Langkawi with an Australian registered boat would i be able to leave it in Langkawi long term without paying extra tax?

It would be a real challenge crossing the pacific and into Asia without stopping in Australia lol.

[boatman61]

No.. Its 90 days out of 180.. if you came back to soon you would only have what you had not used.
Save all your VAT recipts for boat and bits you may buy for it and you can submits a claim in your last EU port.. usually Las Palmas in Gran Canaria..
Though the broker/dealer should do the boat paper work at the time of purchase.. if VAT is liable.

[fxykty]

Originally Posted by Moonos

Awesome, thanks boatman



So possibly i could leave EU for a few weeks before the 90 days expire, then return to grab another 90 days of visa and then take the boat out of the EU?



If it had VAT on the sale price is it possible to claim it back as an export from EU?



If I then continued and eventually arrived in Langkawi with an Australian registered boat would i be able to leave it in Langkawi long term without paying extra tax?



It would be a real challenge crossing the pacific and into Asia without stopping in Australia lol.

Stop in NZ for the cyclone season instead. Or go north to the Marshals or elsewhere in Micronesia. No need to stop in AUS.

As long as you don’t become a permanent resident somewhere and you don’t leave the boat somewhere too long you don’t have to import it anywhere you visit. Langkawi, unlike most other countries, allows almost unlimited time of entry for foreign boats. If you ever want to go home to AUS, you’ll have to import your boat.o

Regarding VAT, from what I’ve heard from others on this forum, once paid, you ain’t getting it back. On a new boat you should be able to export it ex-VAT. On a used EU boat, VAT is built into the price, if paid already.

[Anders]

New boats can be bought VAT free on a sail away scheme, might be possible with an old boat without VAT paid but not many around.

[boatman61]

Moorings and other charter sell offs are usually excluded VAT.. thats why they are cheaper than similar VAT paid boats.

[Moonos]

So it may make sense to purchase new with no vat if viable... then if i ever import it into Australia at least i am only paying tax once.

Obviously new is lots of dollars over 3 year old... but it's worth considering so i can compare total costs.

Ex charter are often worn out from what i have seen, but maybe quite cheap...

[Anders]

You are not paying VAT on an old boat either as long as an owner before you paid VAT so you only have to pay tax once anyway.

[james247]

Originally Posted by fxykty

Stop in NZ for the cyclone season instead. Or go north to the Marshals or elsewhere in Micronesia. No need to stop in AUS.

As long as you don’t become a permanent resident somewhere and you don’t leave the boat somewhere too long you don’t have to import it anywhere you visit. Langkawi, unlike most other countries, allows almost unlimited time of entry for foreign boats. If you ever want to go home to AUS, you’ll have to import your boat.o

Regarding VAT, from what I’ve heard from others on this forum, once paid, you ain’t getting it back. On a new boat you should be able to export it ex-VAT. On a used EU boat, VAT is built into the price, if paid already.

Set up a company in a foreign country and have the company own the boat. Just don't do it in your name. There are plenty of boats in Australia registered in the Caymans for instance.

[Moonos]

Thanks all. It might be a good idea to do a charter in EU as a first step to see what I think.

My experience to date is mostly Asia but i'm looking for something new i need to get out of that bubble lol.

[Anders]

BTW, it's maximum 90 days out of any 180 days in Schengen countries, not all EU countries are in Schengen.

[Jim Cate]

Originally Posted by Factor

Been down this path a few times. As an Australian Citizen (I presume you are) you are obliged to register the boat as an Australian Boat. You commit an offence if you dont. This has NO impact on GST. GST is only payable on entry to Australia. As an Australian Citizen its payable on entry - no way around it.

Below is an excerpt from a previous thread on this matter: BTW I am not the john in the email, that was another member. And when AMSA mention the thread they are specifically talking about a thread on this forum where some stated quite strongly that the law didnt apply to them

So, what is the legal status of an Aussie forming a company in another jurisdiction (as suggested above) to own the boat? It certainly seems to be a regular practice in Oz... does it legally dodge the restrictive rule, especially ifthe boat never comes to Oz?

This is a question from curiosity only... I'm not an Aussie citizen.

Jim