Over winter in Europe strategy

[seanseamour]

I am a US citizen having purchased two new boats in France, when you accept delivery of the vessel VAT is due six months from the day once you finalize the transaction, I too imported equipment for the commissioning all done before final transfer of ownership. These are EU rules, my yard selling agent suffered tax penalties for bending the rules on another transaction than mine. Severity of implementation does vary from one country to another but if you are in the Med it can be tricky.

[stevewrye]

Originally Posted by seanseamour

I am a US citizen having purchased two new boats in France, when you accept delivery of the vessel VAT is due six months from the day once you finalize the transaction, I too imported equipment for the commissioning all done before final transfer of ownership. These are EU rules, my yard selling agent suffered tax penalties for bending the rules on another transaction than mine. Severity of implementation does vary from one country to another but if you are in the Med it can be tricky.

Did you pay the tax? Because you were from the USA and you took the boat back to the USA or out of Europe. Or do you have the boat still in Europe for more than 18 months?

We are having the boat built in Brittany. Bienvenue chez Boreal

[seanseamour]

Our delivery was delayed until May due to factory default problems hence we lost our window to sail her home. We stayed the allowed six months and moved her to Gibraltar out of the EU. That became our base for the next two years sailing the Med until our crossing in 2002. Had we stayed in France where we had a home we would have had to pay the VAT. There are provisions to put the vessel on what was called at the time a "Passport", process in which you submit the documentation to customs and are not allowed to use the vessel for pre-determined periods. The regulations evolved to enable more charter vessels to berth in EU waters but here are efforts to tighten that up also.

[stevewrye]

Originally Posted by seanseamour

Our delivery was delayed until May due to factory default problems hence we lost our window to sail her home. We stayed the allowed six months and moved her to Gibraltar out of the EU. That became our base for the next two years sailing the Med until our crossing in 2002. Had we stayed in France where we had a home we would have had to pay the VAT. There are provisions to put the vessel on what was called at the time a "Passport", process in which you submit the documentation to customs and are not allowed to use the vessel for pre-determined periods. The regulations evolved to enable more charter vessels to berth in EU waters but here are efforts to tighten that up also.

Thank you for your insight.

Not to change the subject too much.
That is some story on your website. It appears to this experienced sailor you did everything right and survived the biggest seas I have ever witnessed in real life or film. Remarkable, I look forward to reading more.
The video is amazing, The exhaustion on the faces of the 3 crew tells the story. The brave jumpers face when he came back on the copter, I don't know what to say but I will remember it and think about it for a long time.

[savoir]

Originally Posted by hpeer

Great site, but very euro centric.

For example....does a US six pack work as a cert of competency?

Of course, especially with Moroccan customs guys.

[seanseamour]

The extra-ordinary was the courage and determination of a seasoned USCG HH-60 crew that went beyond anything any four of them had ever seen, to engage and save our lives. Awarded by two nations (US and Canada' Star of Courage for the rescue swimmer), the book that was just released tells their story at least as much as ours.

[LJH]

Originally Posted by seanseamour

The extra-ordinary was the courage and determination of a seasoned USCG HH-60 crew that went beyond anything any four of them had ever seen, to engage and save our lives. Awarded by two nations (US and Canada' Star of Courage for the rescue swimmer), the book that was just released tells their story at least as much as ours.

A short CBC article here U.S. man to receive Star of Courage - Ottawa - CBC News

[goboatingnow]

Note despite what is being said here, Once you are not a Tax resident of teh EU, you are entitled to 18 months before vat is due. ( the limit was raised from 6 months several years ago).

If you are a EU tax resident, you have no period of grace, VAT is due at the point of import immediately as it is on all goods. there are some wrinkles to this if you bond the vessel.

There is no derogation from VAT using "yacht in transit" claims, "ship in transits" rules only apply to commercial vessels. Interesting some chandlers still will allow "yacht in transit" VAT deductions but they should know better.

Some countries have specific "sail away" schemes that mean you do not have to pay VAT on a new boat , or its equipment, once you undertake to remove it from the EU within 3 months of purchase. ( if you are a non resident you can then comeback for 18 months without VAT). Other countries have not worjed up such schemes, but VAT law entitles you to this and an application can be made to customs to sort this out.

Note that most dealers, still require you to pay the VAT which is held by them ( the dealer) until you show proof of export. This is because VAT is the responsibility of the seller.

Note there is NO requirement to apply for the 18 month VAt excemption, you are entitled to it by law. just maintain a log etc , in case you are ever challenged ( the risk is virtually zero)



Note the Schengen system isnt crazy, at its heart is a provision that is the same as the US, 90 days in 180, treating the EU ( Schengen area) as one country.( just like the US).

In practice as was mentioned, yachties are generally turned a blind eye to. Europe is a yacht friendly area and port officials arnt that interest in being difficult.

Airports are a different matter.

Its unfortunate that the issues are often clouded by people relating their own experiences often from periods past when the rules have changed.

Dave

[blackwatch]

Hi,
there I a place which is haven on earth for boat and visitors, Alcoutim In Portugal. there you can leave your boat for ever as it always the doubt, is it docking in Portugal or in Spain? look it up on Google earth and you will see what I mean.
the local are friendly and will look after your boat for a bottle of wine.( 2 Dollars ).
Visa? as the same as with the boat.