What does "Taxes Not Paid" actually mean?

[jmschmidt]

Well you are wrong about that. the ads usually say "Not for Sale to US Citizens in US Waters." It doesn't mean that it can't be sold to a US citizen. And the US import duty on yachts is 1.5% unless exempt which many are, way less than the up to 20% of some EU countries.

[john61ct]

If you mean me, key phrase is "as it is now".

If the seller wants to be able to advertise to USians, the tax / duty needs to be paid by them in advance.

Since the buyer may be foreign they avoid that by including the required proviso.

When the USian buyer appears, then that tax amount - whatever it is - needs to be added, or at least taken into account in the negotiations.

[boatingnewbie]

Originally Posted by jmschmidt

Well you are wrong about that. the ads usually say "Not for Sale to US Citizens in US Waters." It doesn't mean that it can't be sold to a US citizen.

It's very confusing as some don't say the "US Waters" part, such as this listing below... notice how it only says "Not available to US citizens":
https://www.yachtworld.com/boats/201...g#.W2ANIthKjMU

[john61ct]

Just a more comprehensive scope - we don't want to deal with US citizens trying to avoid the tax by buying internationally.

Besides the requirements of US tax law / import fee regs, some owners may genuinely not want to deal with US buyers, for whatever other reasons.

Can only find out by enquiring, making sure to emphasize you're keen and will pick up any extra costs incurred.

[valhalla360]

Not sure if this has an impact but can a foreigner get in trouble for bringing a boat in with the official reported intent to use it personally and then when they sell it the govt decides it was a business venture and they were just trying to skirt the rules operating a boat sales business without a work visa...1.5% import duty doesn't budge the meter (unlike 20%+ EU VAT) so I can't see the dollars causing a fuss.

If they take it offshore to sell and the new US owner brings it into the country, the govt sees it as a US citizen importing a boat they bought somewhere else. The new owner is legally in the country and can legally run a business in the country...at that point, they just want their 1.5% and all is good.

[john61ct]

Complex scenario, pay a lawyer au fait with it.