TAX PAID ON SAILING BOATS

[cooper1991]

As a UK citizen, if I bought a sailboat in USA or Carribean, do I have to pay Value Added Tax or any other state or country purchase tax?

[Montanan]

Originally Posted by cooper1991

As a UK citizen, if I bought a sailboat in USA or Carribean, do I have to pay Value Added Tax or any other state or country purchase tax?

Citizenship generally has nothing to do with VAT or Sales / Use taxation, or as to customs duty upon import.

Residency is the generally the primary factor as such taxations are "privilege" taxes. The privilege to sale, the privilege to purchase, the privilege to use.

If you purchase a boat in one of the States of the USA, then you may be required to pay either a Sales or a Use taxation, [one or the other, but not both]. Not all States have Sales or Use taxation. There is no VAT in the USA. The rules associated with Sales / Use taxation are unique and specific to each State. 50 States, 50 sets of rules. Sales tax is based on the situs of the sales transaction; use taxation is based on the situs of use of the boat. In the USA, States provide reciprocity by granting credit to the owner if they paid Sales / Use taxation in another State, one gets credit against the Use taxation owed in the State into which the vessel is relocated to for use purposes. FYI: Sales / Use taxation in the USA is much less as a percentage of the value of the good then VAT taxation. Sales / Use Taxes generally range from 6 to 8% of the purchase price, if there is a sale / use tax within the State. There is no USA federal VAT or Sale / Use taxation. There may be customs duty due upon importation of the boat into the USA. The sales / use tax is not included in the price of a good, it is calculated at the time of purchase or use and is added to the purchase price if it is a Sales Tax, or it is paid to the county of jurisdiction if it is a Use taxation. I live in Montana where their is no Sales / Use taxation [and like all of the States and also the Federal taxations, there is no VAT]

Determine which country or state you intend to purchase a boat, then research the rules applicable to that tax jurisdiction.

[Montanan]

A useful reference link that provides the standard VAT by country. Note that there are often non-standard VAT rates for specific categories of goods and services.

Puerto Rico is a territory of the USA and is not a State. Puerto Rico has VAT but does not have Sales / Use taxation. Please note that the U.S does not have a national VAT or GST. The U.S does, however, have a Sales / Use Tax that varies from state to state.

https://www.uscib.org/value-added-ta...at-by-country/

Note that there may also be other taxes, e.g., excise, property taxation, etc.

Typically for non-residents of a country or State, if the good is purchased and is exported promptly, VAT, or Sale/Use tax can be waived or clawed back upon export.

[nightowle]

You didn't say if you plan to use the boat in the U.S. or export it.

[boatman61]

Only if/when you get back to the UK.
If you plan on keeping it in the Med I you can avoid VAT by going the 18mths in, 1 day out route.