Australian Flag in Europe

[fdigio]

Hello,
I am a dual citizen of Italy and Australia. I am purchasing a boat with a Croatian flag (VAT paid) and would like to convert the flag to Australian. I have a few questions:
1) Do I need to pay VAT after 18 months (I suppose I don't, already paid) keeping the boat in Europe?
2) If I sell the boat outside Australia, do I need to pay GST in Australia?
3) Are there any disadvantages to keeping an Australian-flagged boat in Europe?

Thank you very much for your help!
Fabio

[leecea]

I have seen other threads with issues about insurance based on the owner's country of residency and the boat's registration. I don't know much about it but maybe that's something you need to research.

[chrisr]

Originally Posted by fdigio

Hello,
I am a dual citizen of Italy and Australia. I am purchasing a boat with a Croatian flag (VAT paid) and would like to convert the flag to Australian. I have a few questions:
1) Do I need to pay VAT after 18 months (I suppose I don't, already paid) keeping the boat in Europe?
2) If I sell the boat outside Australia, do I need to pay GST in Australia?
3) Are there any disadvantages to keeping an Australian-flagged boat in Europe?

Thank you very much for your help!
Fabio

cannot comment on EU VAT, however you will only need to pay australian GST (and import duty) if you import the boat into australia.

australian registration is different matter to importing the boat into aussie

as a non EU flag you will be limited to the amount of time you can spend within the EU. think regular trips to eg morocco or egypt to reset your EU clock.

but why flag the boat in australia ? if you can keep an EU flag you can save lots of hassles.

there is also insurance to consider. we found some insurance co would not insure aussie flag, or the premium was way too high. insurance cost can also vary between EU flags due to different VAT rates on insurance.

fyi we are aussie and elected to flag in germany, for a number of reasons

cheers,

[fdigio]

Originally Posted by chrisr

cannot comment on EU VAT, however you will only need to pay australian GST (and import duty) if you import the boat into australia.

australian registration is different matter to importing the boat into aussie

as a non EU flag you will be limited to the amount of time you can spend within the EU. think regular trips to eg morocco or egypt to reset your EU clock.

but why flag the boat in australia ? if you can keep an EU flag you can save lots of hassles.

there is also insurance to consider. we found some insurance co would not insure aussie flag, or the premium was way too high. insurance cost can also vary between EU flags due to different VAT rates on insurance.

fyi we are aussie and elected to flag in germany, for a number of reasons

cheers,

Yes, thanks. My plan is to move to Au with the boat in 2 years. I'm currently exploring whether there are any benefits to flagging Au from now, but so far, I've only received negative feedback so far.

Thank you!

[goeasy123]

Originally Posted by chrisr

cannot comment on EU VAT, however you will only need to pay australian GST (and import duty) if you import the boat into australia.

australian registration is different matter to importing the boat into aussie

as a non EU flag you will be limited to the amount of time you can spend within the EU. think regular trips to eg morocco or egypt to reset your EU clock.

but why flag the boat in australia ? if you can keep an EU flag you can save lots of hassles.

there is also insurance to consider. we found some insurance co would not insure aussie flag, or the premium was way too high. insurance cost can also vary between EU flags due to different VAT rates on insurance.

fyi we are aussie and elected to flag in germany, for a number of reasons

cheers,

If EU VAT paid you will be VAT paid in the EU irrespective of flag state, Aus or EU. You will not be limited by time, won't be subject to Temporary Importation rules a won't have to do turnaround trips to Morroco etc.


If you flag it Italian you will get less hassle from the authorities. In particular, Greece and Italy where they are likely to insist on limited transit logs for 3rd country flags that effectively declares the boat not VAT paid with time limits and other inconvenient constraints.... even though this contravenes EU law (the Union Customs Code)



If you eventually want to take the boat to Aus check the rules on import of personal chattels. Many countries allow you to bring goods in tax free if you have owned them for some time. In the case of boats the best way too do this is to use a broker and have the boat shipped in on deck. Then it is treated as general goods and not a vessel.... different procedures.

[chrisr]

Originally Posted by goeasy123

If EU VAT paid you will be VAT paid in the EU irrespective of flag state, Aus or EU. You will not be limited by time, won't be subject to Temporary Importation rules a won't have to do turnaround trips to Morroco etc.

thanks for pointing this out...you are of course quite correct

stupidly i had overlooked the OP's comment that the boat was vat paid

cheers,

[tilaya]

We do have the setup Australian flaged and CH / AUS nationality.
Our vessel is a non VAT paid boat ;-)


This setup only works, if you are not an EU-citizen. An EU citizen with residence in the EU is obliged to have the vessel VAT paid.


A full text you might find at: https://www.ionianyachtsales.com/use...fo/vat-yachts/


We might see us in Greece :-)
Safe sailing,
Conrad