Where do we flag our boat?

[dohenyboy]

Originally Posted by hellosailor

Nominee directors? To allow the 51% stockholder, an alien, to federally document a vessel in the US?
And the corporation has no other purpose?


Our IRS calls that a "sham corporation" and once it is discovered, files criminal and conspiracy charges against all parties involved, meanwhile seizing all the assets, like the boat.

Not so. Unless you use a corporation to WRONGFULLY avoid paying taxes the IRS could care less. There are legal ways to use an entity such as a corporation to reduce or eliminate tax liability, and there are illegal ways.
Unless you are doing business or deriving income from US activities, the IRS has nothing to complain about using a corporation to hold title to an aircraft or vessel for personal use.

[Zven]

Owning a corporation does not make you a tax evader, just like owning a boat does not make you a drug smuggler.

[marc g]

Originally Posted by lauraj

US citizen registering a boat with the Coast Guard as a documented vessel. ...very simple. did it. don't need any state registration.

Not exactly true. The tax is considered a use tax, and if you are in certain states such as FL, MD etc. for 90 days(?) they will want you to register there, and pay the tax.
Some of the states that recognize documentation, will want a personal property tax paid (NC).
There are some clever ways to avoid the state taxes, but this is not the format to discuss it.
Marc

[ursuss]

Originally Posted by Dockhead

For UK: Yes, for Part I registration, a non-European citizen needs a UK company. There is no requirement of any kind of ownership or control by UK or European citizens. My UK company has a sole shareholder (me, a US citizen) and sole director (me), is exempt from tax filings, pays no tax of any kind, and requires only the filing of an annual declaration about its shareholders, directors, and legal address. Very simple, efficient, convenient, and cheap.

Can someone recommend a good (maritime) lawyer to do the above?

Non EU citizen, yacht to be purchased (french flag) is overseas, value > EUR 1M, want to keep 'EU VAT paid' status.

[svlamorocha]

Originally Posted by urothacher

Can someone recommend a good (maritime) lawyer to do the above?

Non EU citizen, yacht to be purchased (french flag) is overseas, value > EUR 1M, want to keep 'EU VAT paid' status.

I am afraid no lawyer can change the facts of the transaction, whcih are very important. Last time I looked at this of the transaction happened outside EU Vat territory then the so-called "VAT-paid status" wold be lost. If the rules are still the same you want (from VAT standpoint) the transaction to happen in EU VAT territory.

[ursuss]

Originally Posted by svlamorocha

I am afraid no lawyer can change the facts of the transaction, whcih are very important. Last time I looked at this of the transaction happened outside EU Vat territory then the so-called "VAT-paid status" wold be lost. If the rules are still the same you want (from VAT standpoint) the transaction to happen in EU VAT territory.

I have been trying to find that rule; would you know where to look?
French customs does not seem to know about it...
The transaction would be between an EU citizen and an EU corporation, does it really matter where the boat is? How would they enforce it; look at the log book and check the location of each sale?

[med]

Originally Posted by svlamorocha

I am afraid no lawyer can change the facts of the transaction, whcih are very important. Last time I looked at this of the transaction happened outside EU Vat territory then the so-called "VAT-paid status" wold be lost. If the rules are still the same you want (from VAT standpoint) the transaction to happen in EU VAT territory.

If the sale takes place when the boat is outside the EU, then EU VAT is due when the boat is reimported to the EU - at the first port of entry into the EU. Even if the transaction took place between EU residents/citizens in the EU and regardless of the time the boat was outside of the EU e.g. even one day.

However, in the OP's case the sale is taking place while the boat is in the EU between EU residents. So no VAT is due and the boat keeps its VAT paid status.

In theory, you should have proof that the sale took place while the boat was in the EU (e.g. marina bill).

For a high valued transaction it is worth getting the bill of sale which should specify the location of the boat, the location of the transaction and the residency of the seller and buyer notarized or officially documented in some way.

For registering it might make sense for the OP to create a UK company and register the boat on the UK's part I registry (this is straightforward if the documentation is in order).

[med]

Originally Posted by urothacher

I have been trying to find that rule; would you know where to look?
French customs does not seem to know about it...
The transaction would be between an EU citizen and an EU corporation, does it really matter where the boat is? How would they enforce it; look at the log book and check the location of each sale?

Be careful. French customs do keep a subtantial amount of intelligence about high value yachts and their locations. Registries of yacht owners are accessible by anyone, so I would not be surprised if they check up on changes of ownership.

For a high valued yacht it is not worth risking - it is not difficult to move the yacht to a EU port for the sale.

[svlamorocha]

Originally Posted by med

However, in the OP's case the sale is taking place while the boat is in the EU between EU residents. So no VAT is due and the boat keeps its VAT paid status.
.

That iw not what OP is planning to do. OP wantz to buy a boat that is "overseas", which presumably means outside the European VAT territory.


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[svlamorocha]

Originally Posted by urothacher

I have been trying to find that rule; would you know where to look?
French customs does not seem to know about it...
The transaction would be between an EU citizen and an EU corporation, does it really matter where the boat is? How would they enforce it; look at the log book and check the location of each sale?

It is unclear to me whether you are asking questions or answering them. Yes, it does matter where the boat is. Once known that you brought the boat into European VAT territory if they look at your boat the burden of proof is on you, not on the VAT authority. Given that resale value may depend on VAT-paid status being defensible in various countries, you may want to start by calling UK HMRC's unit of expertise in yachts; Google is your friend.

if you trust your Customs contact so much ask under what "relief" would your boat enter European VAT territory for tbe first time after you buy it. One things is to be innocent, another thing is not to be caught!

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