Vat and tax implications of buying in Europe

[rabbi]

Originally Posted by rik stoney

What might happen after June if the UK comes out of Europe ?

I don't think that UK passport holders will need to adhere to Schengen rules.
But Boats listed in GBP may become very affordable for a few months until the dust settles.

[poiu]

Originally Posted by rik stoney

What might happen after June if the UK comes out of Europe ?

I'm going to get rather jolly.

[poiu]

Originally Posted by rabbi

I don't think that UK passport holders will need to adhere to Schengen rules.

We don't already as we are not in Shengen and don't have to. Trouble is the Shengen members like France don't play by the rules of the game by maintaining their non Shengen border with us and do things like help migrants escape France by not stopping them going through the Channel Tunnel. They even permit them to build a staging camp in Calais and to add to the craziness, the British fund the French Police to pay them to not do what they should be doing anyway. It's all a ridiculous affair.

[Heg]

Thanks guys. Some great, if conflicting advice, but it has given me a better idea of what we need to research.

Yes we are better off buying a VAT paid second hand boat, but there are some great deals on brand new boats out of Europe, especially compared to second hand prices here in AU. I have seen at least 6 boats advertised here that are 4-5 years old and that are around 60 -100k aud more than a new one will be in Europe... Thats a lot of sailing budget, even if it is easier to set sail from our 'home' port.

Also -we do not know if we will ever 'settle' anywhere for a long time. Like I said, our intention is to cruise for 10-15 years and quite frankly, returning to Australia even for a few months is not really on our radar. We are keen divers so have sailed most of the barrier reef and Whitsundays already....

This is really why my question of tax came up. If we buy brand new ex VAT, and do't pay VAT in Europe, are we ever likely for tax anywhere if we don't settle?What counts as 'importing' your boat?

[SaltyMetals]

Boatman, I know it is a bit off-topic for this thread but a cousin of mine (UK citizen but no longer UK resident) took his Colombia 50 (UK Flag registered on Part 1 when he was in San Diego) from San Diego across the Pacific but got stuck with engine trouble in the Marquesas. Took a long time to get the parts but now fixed. He loves the place so much it looks like he is staying. Been there 11 months already, still living on his boat and apparently he can get local citizenship once he completes 12 months.

[undercutter]

Originally Posted by Heg

Thanks guys. Some great, if conflicting advice, but it has given me a better idea of what we need to research.

Yes we are better off buying a VAT paid second hand boat, but there are some great deals on brand new boats out of Europe, especially compared to second hand prices here in AU. I have seen at least 6 boats advertised here that are 4-5 years old and that are around 60 -100k aud more than a new one will be in Europe... Thats a lot of sailing budget, even if it is easier to set sail from our 'home' port.

Also -we do not know if we will ever 'settle' anywhere for a long time. Like I said, our intention is to cruise for 10-15 years and quite frankly, returning to Australia even for a few months is not really on our radar. We are keen divers so have sailed most of the barrier reef and Whitsundays already....

This is really why my question of tax came up. If we buy brand new ex VAT, and do't pay VAT in Europe, are we ever likely for tax anywhere if we don't settle?What counts as 'importing' your boat?

Different places different rules. In Oz you can get up to 3 years before you have to pay the GST depending on your visa. With Kiwi passports you would be good for 3 years as long as you didn't reside or work there. I think Canada you can only get 2 years, and of course you know the E.U. is 18 months. Indonesia you can stay for up to 3 years as long as you do not charter and of course the best is Malaysia, where if you register the boat in Langkawi or Labuan you never have to pay import tax no matter how long you stay.

As you say you are divers I think that Langkawi may be the best. The diving in Thailand, Malaysia and Indonesia are second to none with Indonesia being the best. We registered our boat in the Cayman Islands for income tax purposes so that might be a thought if you do not intend to maintain residency anywhere else. The annual fees are roughly $1,000.00US but that is nothing compared to income taxes say in Oz or Canada.