Paying Boat Purchase Tax again

[Montanan]

And don't forget about the Excise taxation.

[Montanan]

Excellent reference articles in this regard.

Boat owners need to carry VAT proof onboard post-Brexit

https://www.yachtingmonthly.com/news...t-brexit-75771

UK sailors with boats in Europe granted Returned Goods Relief extension

https://www.yachtingmonthly.com/news...xtension-77349

[ausnp84]

Originally Posted by Montanan

Excellent reference articles in this regard.

Boat owners need to carry VAT proof onboard post-Brexit

https://www.yachtingmonthly.com/news...t-brexit-75771

“ He added that all documentation should be brought to and from the boat, rather than left onboard, due to the ‘damp nature’ of vessels.”

Who on earth will take yacht paperwork to and from the boat on every visit? And other than dayboats, who has a ‘damp’ boat these days? I swear the Brit mentality of yachting is still cold, hard work (ala Golden Globe or Fastnet ‘79)....

N

[Joh.Ghurt]

Originally Posted by Montanan

And don't forget about the Excise taxation.

As far as I can tell, there are only two areas where the excise tax rules are different from the VAT rules, and both are irrelevant to cruisers.

San Marino is landlocked and when did you anchor last time on Mount Athos in Greece? This would be even more kinky that stampeding cattle through the Vatican. (Bonus points for anyone knowing where this reference comes from without Google)

[donradcliffe]

I bought a boat in 1994, cruised it around the world (including 3 years in the Med), and sold it in 2011. I paid no sales tax, use tax, property tax, VAT, or excise tax on the boat. I I did pay sales/VAT tax imbedded in the price of boat equipment that I added. I did change locations often--and kept one step ahead of the tax man.

The world is now a different place.

[Higherfield26]

How does this apply to purchasing a boat in Europe and bringing it back to UK waters for <1 year before going off cruising for a year? VAT has already been paid in Portugal, but then there would be change of ownership if we purchased?

[Montanan]

Originally Posted by Higherfield26

How does this apply to purchasing a boat in Europe and bringing it back to UK waters for <1 year before going off cruising for a year? VAT has already been paid in Portugal, but then there would be change of ownership if we purchased?

Please be fact explicit when posing a hypothetical or actual tax question; "The devil or God is in the details."

VAT temporary admission [temporary import] exemption depends on residency / non-residency into which country one is importing the good.

VAT depends in which country the sale occurred.

VAT and customs duty depend on whether an import has occurred.

EU VAT paid status applies to goods in the EU, UK VAT paid status applies to goods in the UK. Where the goods were located at the time of Brexit establishes there post-Brexit VAT paid status.

[Higherfield26]

Ok apologies, it is not my area of expertise & it is so confusing!
The purchase would be in Portugal, for a boat that has been kept in Portugal. We are UK residents, bringing the boat temporarily into UK waters to pack up before heading off cruising for a year or so, with a view to sell (not in the UK) after this. I have sent a temporary import exemption request to HMRC, I'll let you know what I hear back..

[Montanan]

Originally Posted by Joh.Ghurt

As far as I can tell, there are only two areas where the excise tax rules are different from the VAT rules, and both are irrelevant to cruisers.

San Marino is landlocked and when did you anchor last time on Mount Athos in Greece? This would be even more kinky that stampeding cattle through the Vatican. (Bonus points for anyone knowing where this reference comes from without Google)

FYI: The OP's question was in regard to taxation in the USA. Each state of the union is unique as to the taxations of vessels, some have excise taxes, e.g., Washington, Indiana (is the place to be . . .), Massachusetts, Maine, New Mexico, Oklahoma, and South Carolina has a "casual excise tax" on boats and motors, etc.

[Montanan]

Originally Posted by Higherfield26

Ok apologies, it is not my area of expertise & it is so confusing!
The purchase would be in Portugal, for a boat that has been kept in Portugal. We are UK residents, bringing the boat temporarily into UK waters to pack up before heading off cruising for a year or so, with a view to sell (not in the UK) after this. I have sent a temporary import exemption request to HMRC, I'll let you know what I hear back..

The HRMC may desire to place the good as a temporary import under bond, a TIB. Or for you to pay VAT and then receive relief by duty drawback upon exportation of the good. One possibility is a Carnet or ATA Carnet (pronounced kar-nay) is an international customs and temporary export-import document. It is used to clear customs in 87 countries and territories without paying duties and import taxes on merchandise that will be re-exported within 12 months*. Carnets are also known as Merchandise Passports or Passports for Goods.

Be sure to obtain documentation of the goods export from the UK. Declare the export before exiting the port. No ticky, no laundry.

[h20man]

Originally Posted by seandepagnier

i had to pay far more than the vessel value in taxes an fees from all the different countries. for example, new zealand charged 22% plus fees. On returning to the US, there were fees to register the boat which ended up being 15% of vessel value

In south pacific average fee was 10-15% of vessel value for check in per country. In a bunch of countries I talk the officials out of charging me. in caribbean it would cost 5% of vessel value just to check in and stay 30 days.

Why can't you pay 20% again? Why is it the rich always complaining when their taxes are unfairly much lower? The 20% tax should be 40%. at least you have health care.

I am a bit confused here.... Which south pacific countries are charging fees for visiting them that are 10-15% of vessel value per check in?


And you took a vessel from the US and then returned and had to register and pay 15% fees? Why did you pay fees in New Zealand of 22%?


I suspect that they are import fees, and not check in fees.


I look forward to being educated...


Thank you in advance.

[Bfay]

Clear. what great news! They just made my day (sarcasm). I was just going to buy a boat next month to take my three sons and two daughters fishing. Now they will have to wait a few more months for me to make a normal basis for paying taxes on the boat.

[ChrisJHC]

Originally Posted by h20man

I am a bit confused here.... Which south pacific countries are charging fees for visiting them that are 10-15% of vessel value per check in?


And you took a vessel from the US and then returned and had to register and pay 15% fees? Why did you pay fees in New Zealand of 22%?


I suspect that they are import fees, and not check in fees.


I look forward to being educated...


Thank you in advance.

It’s quite easy. Just value your boat at $1000.
Then, when you have to pay your $150 check-in fee, make a fuss and say they charged you 15% of the value of the boat.

Of course, you would pay the same $150 check-in fee on a $2m boat, but that wouldn’t suit the narrative.

[ozsailer]

wow,
here in Oz you pay GST on purchasing a new boat but no tax on second hand boats unless you go through a broker , then a 10% GST is paid only on brokerage fee) no tax is required to be paid for the rest of the boats life. If new, a 10% Goods and Services Tax is required to be paid on the value of the boat Australia wide. We do have to pay yearly registration but this is a couple of hundred dollars per boat.
For the benefit of our American friends there is no tax on houses other than when you first purchase your home, there is no ongoing tax's ever after that. Mind you the Pollies are always talking of a wealth tax


Osailer
Oz

[etoimene]

Originally Posted by h20man

I am a bit confused here.... Which south pacific countries are charging fees for visiting them that are 10-15% of vessel value per check in?

He probably has low value vessel so fixed entry fee comes to this percentage.

EDIT: Has been said before.