"Importing" a vessel from the USA

[Lo-Ray]

Dear all,

As we consider buying a boat, US Import Duty paid, can we sail her to Europe without incurring EU VAT?!
Has anyone done this?
How do things work?
We plan to sail her around the world ...

:thankx:

[boatman61]

Depends on nationality/citizenship/residency.

[gs41escapade]

Are you US or EU citizens? Buying in the US? Are you moving to EU or just visiting on our world cruise? More details are needed.

[letsgetsailing3]

Also, where are you actually buying it?

[Lo-Ray]

Thank you!!!
The boat is in Florida, we would sail those waters for a while, visit the Bahamas, and make our way North at some stage before crossing back to the Med.
we are one German, with residence in Germany and one Brit, of no fixed abode.
We would be the fourth owners, It is a Lagoon, so built in France.
Hope this helps

[boatman61]

If the boat is registered to the German you'll be liable for VAT, if in the Brit name you can use the 18mth exemption then spend a night in a non EU port and return to the EU and restart the clock.
Register either in UK or Poland.

[Montanan]

Originally Posted by Lo-Ray

Thank you!!!
The boat is in Florida, we would sail those waters for a while, visit the Bahamas, and make our way North at some stage before crossing back to the Med.
we are one German, with residence in Germany and one Brit, of no fixed abode.
We would be the fourth owners, It is a Lagoon, so built in France.
Hope this helps

A resident of Germany [does not matter of what citizenship], will induce EU VAT and customs duty being due on the vessel upon first arrival into the EU customs territory.

As to "no fixed abode" well that actually is its own can of worms as to determination of established residency. Where does the Brit reside, [devil is in the details].

FYI since you are not citizens of the USA, you will need to each obtain B1/B2 Visa for being able to arrive in the USA via private vessel. The visa waiver program for Brits and German citizens does not apply for entry by private vessel or plane. The VWP applies to arrival by commercial carrier.

You will need to make an interview appointment with a USA Embassy or Consulate in the country of your citizenship, in the country of your permanent residency if other than the UK or Germany. Schedule for the interview appointment promptly and obtain such before traveling to purchase your boat in Florida so as to avoid having to fly back to your respective countries from the USA to attend the interview. Do this NOW.

You may trigger Florida Sales / Use taxation upon the purchase of the vessel, unless you follow the proper procedures for exemption by prompt removal from Florida. Use taxation continues to be of issue as one progresses from State to State. 50 States / 50 sets of taxation rules. Likewise as to the registration rules of each State for the vessel, if the sate becomes the state of principal use.

[boatman61]

Originally Posted by Montanan

A resident of Germany [does not matter of what citizenship], will induce EU VAT and customs duty being due on the vessel upon first arrival into the EU customs territory.

As to "no fixed abode" well that actually is its own can of worms as to determination of established residency. Where does the Brit reside, [devil is in the details].

FYI since you are not citizens of the USA, you will need to each obtain B1/B2 Visa for being able to arrive in the USA via private vessel. The visa waiver program for Brits and German citizens does not apply for entry by private vessel or plane. The VWP applies to arrival by commercial carrier.

You will need to make an interview appointment with a USA Embassy or Consulate in the country of your citizenship, in the country of your permanent residency if other than the UK or Germany. Schedule for the interview appointment promptly and obtain such before traveling to purchase your boat in Florida so as to avoid having to fly back to your respective countries from the USA to attend the interview. Do this NOW.

You may trigger Florida Sales / Use taxation upon the purchase of the vessel, unless you follow the proper procedures for exemption by prompt removal from Florida. Use taxation continues to be of issue as one progresses from State to State. 50 States / 50 sets of taxation rules. Likewise as to the registration rules of each State for the vessel, if the sate becomes the state of principal use.

They are collecting the boat in Florida so they can enter with an ESTA.. however re the B1/B2, they will need to get that if they want to return to the US after the Bahamas.
If however they go East to the islands it's not needed as they can then return to Europe either via Bermuda and Azores or direct to the Azores from St Martin.

[Montanan]

Originally Posted by boatman61

They are collecting the boat in Florida so they can enter with an ESTA.. however re the B1/B2, they will need to get that if they want to return to the US after the Bahamas.
If however they go East to the islands it's not needed as they can then return to Europe either via Bermuda and Azores or direct to the Azores from St Martin.

Plan appropriately.

[Montanan]

Links for guidance for Florida Sales and Use Tax for purchase of boats.

For purchasers and owners:

https://floridarevenue.com/forms_lib...t/gt800005.pdf

For boat dealers and brokers:

https://floridarevenue.com/Forms_lib...t/gt800006.pdf

I would recommend that you promptly pursue a foreign flagging of the vessel so as to be able to obtain a cruising license for the vessel which for many, but not all, states avails an exemption to the imposing a their sales or use taxation. Florida has a specific exemption from Use taxation for foreign flagged vessels operating under a valid US Federal cruising license.

When is Tax Due?
Unless exempt, a boat must be licensed, titled, or registered in Florida with any county tax collector, licensed private tag agency, or the Department of Highway Safety and Motor Vehicles:
• Within 30 days of the purchase date or the date the boat entered Florida; or
• Within 90 days after the boat enters Florida, when the boat is documented, licensed, titled, or registered in another state.
Florida use tax [6%], plus any applicable discretionary sales surtax, due on a boat purchased in Florida or brought into Florida within six (6) months of the date of purchase, is paid at the time of licensing, titling, or registering the boat in Florida.


Specific Exemptions

Boats Sold to Nonresidents of Florida
A boat sold by or through a registered dealer or broker to a purchaser who is a nonresident of Florida at the time of taking delivery of the boat in Florida is exempt. This exemption applies to the sale of a boat, including any accessories, but does not apply to the sale of a boat trailer.

The nonresident purchaser must meet the following requirements:
 The nonresident purchaser must sign an affidavit stating that he or she has read the law and rules regarding the specific exemption claimed and agrees to remove the boat from Florida. A suggested format for the required affidavit is provided in Rule 12A-1.007(9), Florida Administrative
Code.
• A boat of less than 5 net tons of admeasurement must leave Florida within 10 days of purchase or immediately be placed in the care, custody, and control of a registered repair facility for repairs, additions, or alterations. The boat must leave Florida within 20 days after completion of the repairs.
• If the boat is 5 net tons of admeasurement or larger, the purchaser may obtain a set of Florida Department of Revenue boat decals, which authorize the boat to remain in Florida waters up to 90 days after the purchase. This period may be extended to 180 days with the purchase of a 90-day extension decal. The decals must be obtained from the selling dealer or broker.
 Within 30 days of the date of sale, the dealer or broker must provide the Department with a copy of the invoice, bill of sale, and/or closing statement, and the original signed affidavit provided by the nonresident purchaser.
 Within 30 days of removing the boat from Florida, the nonresident purchaser must furnish the Department with proof that the boat left Florida. Receipts for fuel, dockage, or repairs purchased outside Florida must identify the boat.
 Within 90 days of removal, the nonresident purchaser must provide the Department with written documentation evidencing that the boat was documented, licensed, titled, or registered outside Florida or documentation that the nonresident purchaser has applied for documentation, licensing,
titling, or registration of the boat.
This exemption does not apply to a Florida resident, an entity in which the controlling person is a Florida resident, or a corporation in which any officers or directors are Florida residents.

Documentation must be mailed to:
General Tax Administration
Boats – MS 1-2800
Florida Department of Revenue
PO Box 6417
Tallahassee FL 32314-6417

Foreign-Flagged Vessels
Foreign-flagged vessels or boats holding a valid “License to Cruise in the Waters of the United States” issued by the United States Customs Service pursuant to 19 Code of Federal Regulations 4.94 are not subject to Florida use tax.

[Montanan]

FYI:

As Boatman astutely noted an ESTA will allow you to fly into the USA to purchase your boat whereas, the B1/B2 visa will allow you to reenter via your boat.

Present interview appointment wait times for non-immigrant B1 Visa [Temporary Business] or B2 [Temporary Tourist] are:

UK citizens and permanent residents.
US Embassy London
Interview Required Visitors 110 days
Interview wavier visitors 21 days

German citizens and permanent residents.
US Embassy Berlin
Interview Required Visitors 11 days
Interview wavier visitors 1 day


Edit with correction of processing time guidance:

The processing time for a B1/B2 visa, which is a tourist visa for the United States, can vary depending on the embassy, the service center, and the volume of applications. The average wait time for a visa interview appointment is currently two months, but it can take longer in some cases. After the interview, the issuance of a visa can take anywhere from 2 weeks to several months to process.

"As a general guideline, visa processing takes approximately 21 workdays from the date on which the application is received by the Embassy or Consulate. A further 2-3 workdays should be allowed for the return of your passport. These timelines are guidelines only and can vary depending on the circumstances of your case.

As soon as your application has been processed, your passport will be handed to the courier company for delivery and they will email you a tacking number. You can use this number to track your delivery by signing into your account online at https://ais.usvisa-info.com/en-gb

We cannot answer any questions concerning the delivery. Applicants choose how their passport is returned to them as part of the appointment booking process."



Plan travel arrangements accordingly.




Your passport must be valid for at least 6 months beyond the last day of your issued length of stay period of the visa.

Check the expiration date of your passports. Recommend that you get a new one if they are going to expire within one year or six months before you expect to return to the UK / Germany.

[gs41escapade]

Originally Posted by boatman61

If the boat is registered to the German you'll be liable for VAT, if in the Brit name you can use the 18mth exemption then spend a night in a non EU port and return to the EU and restart the clock.
Register either in UK or Poland.

At least in Spain, on our most recent research, it appears that the one day out of the EU may no longer work. the standard tourist visa is good for up to 90 days, but only 90 days in a 180 day window. If you stay 90, you need to be away for an additional 90 days before returning on a new tourist visa. At least that's the rule for standard land travel. Is there something special for boats?

[boatman61]

Originally Posted by gs41escapade

At least in Spain, on our most recent research, it appears that the one day out of the EU may no longer work. the standard tourist visa is good for up to 90 days, but only 90 days in a 180 day window. If you stay 90, you need to be away for an additional 90 days before returning on a new tourist visa. At least that's the rule for standard land travel. Is there something special for boats?

Resetting the clock is for boats.. they are allowed 18mths.
People 90 days.

[Montanan]

Originally Posted by gs41escapade

At least in Spain, on our most recent research, it appears that the one day out of the EU may no longer work. the standard tourist visa is good for up to 90 days, but only 90 days in a 180 day window. If you stay 90, you need to be away for an additional 90 days before returning on a new tourist visa. At least that's the rule for standard land travel. Is there something special for boats?

The boat is not a non-immigrant and does not need a visa. The boat does needs to cleared through customs. Customs has its own regulations, separate from visas.

The Schengen territory which will be expanding to 29 countries with Romania and Bulgaria joining in April, provides for the maximum cumulative 90 days within a rolling 180 day period of visitor entry.

Schengen Area covers most of the EU countries, except Ireland, and the countries soon to be part of the Schengen Area: Romania, Bulgaria, and Cyprus. Although not members of the EU, countries like Norway, Iceland, Switzerland and Lichtenstein are also part of the Schengen zone.

For the resident of Germany, presuming a permanent residency there would be no temporary visa issues. The Brit, well the UK Brexited the EU so they are just a person from a Third Country and the UK is not a part of the Schengen Territory.