Private purchase of zero vat ex-charter Bav 41

[David Greaves]

Hi everyone, can you help me please?

I’m a first time yacht buyer, buying a Bavaria 41 sailing yacht, for private use – and I need a little help ..

My Boat Plan (my situation, boat usage, VAT status, etc).

The buyer is me: I’m David Greaves, British, UK resident, private buyer. And my wife, who is from Argentina.
On 31/12/20: the boat was located in Greece/Corfu, in a marina called Benitses marina, which may be important.
I will locate & use the boat: in Greece (not UK) for long-term berthing & private use to 90 days, and sail across Europe/world.
The seller is: a German man, Germany resident, commercial/ex-charter seller, selling through his chartering business in Greece/Corfu.
The boat is: a Bavaria 41 E, Greek flagged currently, VAT status is “VAT not paid”, currently located in Corfu, Benitses Marina, owned & operated by the German seller.
I intend to avoid paying EU or Greek VAT as: using Temp Admission TA relief for 18 months. I’m a British resident outside EU27 territory, private use, with boat to be owned & registered in UK, outside of EU27.
The sellers Greek broker says: the vessel is ‘VAT EXEMPT’ because the Buyer is holder of a non-EU Id (British Passport), and I have none EU residence (UK).

My 3 quick questions for you ..

1. My question about my VAT obligations to the Greek Government: I’m told my “boat plan” above will mean I have €0 zero VAT obligations to the Greek or EU27 governments?
2. My question about registration/flagging of the boat: which country is best for registration? Would a British registered boat cause me problems or extra costs? Concerns?
3. My question about selling the boat: would my boat plan influence how/where I can sell the boat, or who to? e.g. its location, usage, registration or VAT status?

I hope the above helps you answer my 3 quick questions very easily and quickly.
If anyone thinks there’s anything else I should be aware of, feel free to flag issues/risks?

Thank you, and I’m looking forward to hearing from you.

[boatman61]

1/ Theoretically no.. however to be on the safe side buy it 'for export' and sail her to the nearest non EU country and spend a couple of weeks there before returning under the 18mths rule.
2/ Flag her UK SSR, this should cause no extra expenses or problems as far as I am aware.. flagging her in say Poland may get the Vat geezers sniffing.
3/ I can see no problems re where you sell her as long as your ad states VAT not paid if in the EU..
Just my 0.000001 centimes..

[Yuksel]

If I were to buy this boat, and I live in England, I would pay the VAT to England, and should I put the England flag and I will avoid all the problems that will appear. When it's time to sell the boat, you sell the boat, VAT is paid.

[goboatingnow]

Originally Posted by David Greaves

Hi everyone, can you help me please?

I’m a first time yacht buyer, buying a Bavaria 41 sailing yacht, for private use – and I need a little help ..

My Boat Plan (my situation, boat usage, VAT status, etc).

The buyer is me: I’m David Greaves, British, UK resident, private buyer. And my wife, who is from Argentina.
On 31/12/20: the boat was located in Greece/Corfu, in a marina called Benitses marina, which may be important.
I will locate & use the boat: in Greece (not UK) for long-term berthing & private use to 90 days, and sail across Europe/world.
The seller is: a German man, Germany resident, commercial/ex-charter seller, selling through his chartering business in Greece/Corfu.
The boat is: a Bavaria 41 E, Greek flagged currently, VAT status is “VAT not paid”, currently located in Corfu, Benitses Marina, owned & operated by the German seller.
I intend to avoid paying EU or Greek VAT as: using Temp Admission TA relief for 18 months. I’m a British resident outside EU27 territory, private use, with boat to be owned & registered in UK, outside of EU27.
The sellers Greek broker says: the vessel is ‘VAT EXEMPT’ because the Buyer is holder of a non-EU Id (British Passport), and I have none EU residence (UK).

My 3 quick questions for you ..

1. My question about my VAT obligations to the Greek Government: I’m told my “boat plan” above will mean I have €0 zero VAT obligations to the Greek or EU27 governments?
2. My question about registration/flagging of the boat: which country is best for registration? Would a British registered boat cause me problems or extra costs? Concerns?
3. My question about selling the boat: would my boat plan influence how/where I can sell the boat, or who to? e.g. its location, usage, registration or VAT status?

I hope the above helps you answer my 3 quick questions very easily and quickly.
If anyone thinks there’s anything else I should be aware of, feel free to flag issues/risks?

Thank you, and I’m looking forward to hearing from you.

As a U.K. resident and as long you do not loose that status inadvertently yiu are entitled to the 18 month TIP process within the EU

Be aware in Greece this means you must acquire a 18 month transit log and whilst within Greek waters have that log stamped at every green port you vist. The TEPKAI cruising tax is also paid monthly.

Flagging is irrelevant in relation to TIP biy a non EU flag is more consistent with your usage

Note “ technically “ if you sail out of EU national waters you then become accessible for vat once you renter But this aspect is difficult to prove and hence oversight is light. Just be aware of it.

Other then that you are correct in your basic. Assumptions , make sure you do not become an inadvertent EU tax resident.

Just ensure you Dot your I & T as my information is that the TIP procedures will be tightening up as there is considerable disquiet about the favourable position British buyers are in.

I know the brokers in Gouvia often sign in Albania to ensure the sale is carried out outside thevEU

One thing to be certain of , is how long the boat has been tne EU under TIP. Ensure it has not overstayed its 18 month as you as the new owner now undertake that liability that can be accessed in any EU 27!you arrive at. I know several yachts laid up under covid have been caught by overstaying the 18 month

I had a U.K. friend who walked away from a purchase recently cause he found the boat was 20months within the EU ( Greece )

Remember there should be official Greek transit log showing the start and end of the 18 month periods

Remember if the boat enters U.K. waters U.K. vat is due.

Selling is no issue ,it’s up to the buyer to resolve their vat liabilities

[Anders]

Originally Posted by Yuksel

If I were to buy this boat, and I live in England, I would pay the VAT to England, and should I put the England flag and I will avoid all the problems that will appear. When it's time to sell the boat, you sell the boat, VAT is paid.

That would cost a lot of money for no gain unless he sails the boat back to GB. He still have to use the 18 month temporary import in the EU VAT area.

[goboatingnow]

Originally Posted by Yuksel

If I were to buy this boat, and I live in England, I would pay the VAT to England, and should I put the England flag and I will avoid all the problems that will appear. When it's time to sell the boat, you sell the boat, VAT is paid.

As long as there is no intention to bring the boat to the U.K. why on earth would you voluntary pay U.K. vat when you don’t need to. Even with U.K. vat paid you still have to bring the boat into EU under TIP and for 18 months as otherwise EU vat becomes due on top of U.K. vat.

[svtickles]

Originally Posted by David Greaves

On 31/12/20: the boat was located in Greece/Corfu, in a marina called Benitses marina, which may be important.

Isn't the boat EU VAT paid/exempt because of this?

[boatman61]

Originally Posted by svtickles

Isn't the boat EU VAT paid/exempt because of this?

Read post #1..

[svtickles]

Originally Posted by boatman61

Read post #1..

The agent in Greece I'm buying from says the boat is VAT exempt because it was in the EU before brexit. It appears the same applies to the OP's boat.

[boatman61]

Originally Posted by svtickles

The agent in Greece I'm buying from says the boat is VAT exempt because it was in the EU before brexit. It appears the same applies to the OP's boat.

Nope... its ex charter and vat has never been paid by the German owner.
Whole different ball game.

[Anders]

Originally Posted by svtickles

The agent in Greece I'm buying from says the boat is VAT exempt because it was in the EU before brexit. It appears the same applies to the OP's boat.

Correct if VAT was paid and is changing hands in the EU and your boat was in the EU on Brexit day and it has not lost it's VAT "status"in any other way, Where your boat was before Brexit day is irrelevant.

[letsgetsailing3]

Originally Posted by Anders

Correct if VAT was paid and is changing hands in the EU and your boat was in the EU on Brexit day and it has not lost it's VAT "status"in any other way, Where your boat was before Brexit day is irrelevant.

The first post says the prior owner is German, was chartering the boat, and didn't pay VAT.

Why revive the thread just to change the story? As the original post was in October, the OP clearly sorted it out to whatever degree needed by now.

[Anders]

Originally Posted by letsgetsailing3

The first post says the prior owner is German, was chartering the boat, and didn't pay VAT.

Why revive the thread just to change the story? As the original post was in October, the OP clearly sorted it out to whatever degree needed by now.

I did not revive the thread and I've no idea why you are quoting me.

[letsgetsailing3]

Originally Posted by Anders

I did not revive the thread and I've no idea why you are quoting me.

The guy you responded to revived the thread.

I'm quoting you because you responded.

And if either of you had read the thread, you'd realize you're changing the OP's question with your responses.

I'm just saying "Why?"

[Anders]

Originally Posted by letsgetsailing3

The guy you responded to revived the thread.

I'm quoting you because you responded.

And if either of you had read the thread, you'd realize you're changing the OP's question with your responses.

I'm just saying "Why?"

Because svtickles had a good question that deserved a response.