VAT to pay or not to pay

[phased out]

Hi
I have recently purchased a yacht which is based in Greece. It is not VAT paid!
It is registered in the UK. Does anyone have information on how to pay the said
VAT. IE Greece or UK

Many thanks

[Haywoods]

Hi there. We are looking at a boat in Greece with the intention of buying. Spent ages looking into VAT issues - its a nightmare. I think we will pay VAT in the UK as this boat is also "VAT not paid ".

There are various schemes for avoiding the VAT but I have read the HMRC website and they are onto these schemes. If you are sailing in the Med, you could be asked to show VAT paperwork at any time. Thats why we think UK rather than Greek VAT ( Its bad enough dealing with our Tax people - god knows what it would be like dealing with Greece's ).

Also need to know about leaving the EU - if you leave for more than 3 years then return, you could have to pay the VAT again !!!! You must apply to extend the period with the HMRC BEFORE you leave !

[kas_1611]

How can it be non VAT if it is UK registered and in an EU nation? That is not physically possible from my understanding having been through the VAT situation when Croatia joined.

I would suggest you double check the documentation is it may have been that the vessel was rated as "zero" for VAT due to age. However this is Greece and it has become clear how lax they are at collecting VAT recently.

If you do have to pay VAT then it will be at the rate of the nation state the vessel is purchased or imported into. So you will have to pay Greek VAT on the value perceived at the time by the authorities.

If you subsequently leave the EU for more than 3 years you will then be subject to VAT on your return so it is well worth planning any long trips around this fact. For those planning on going to the Caribbean it is worth noting that Guadaloupe and Martinique are both considered part of the EU as they are "Domaine Outre Mer" territories and part of metropolitan France. Therefore you are enetering French national waters.

Keiron

[Haywoods]

According to the HMRC website, it is possible to extend the three year limit by applying to them before you leave. The vessel must return within the new agreed time period, must be owned by the person who took it out of the EU and must not be altered or improved apart from general maintenance.

My understanding is that the actual position of the boat within the EU does not matter - The vessel can be registered and VAT paid in any EU country.

There are schemes being offered by certain individuals to register boats with a Company formed in somewhere like Malta. It is actually stated on the HMRC website that they are actively investigating these schemes so be extremely careful.

[stefano_ita]

If the previous owner was an off shore company or a non resident of the eu, the boat even in european water it's possible that has no vat payed on it..is it greece flag alright?