Vat or tax paid???

[Kiwikat]

This may seem a bit of a dumb question but I'm sure the forum can set us straight.

We will be looking at buying a second hand boat overseas and taking it back to NZ. We often see advertisements for eg: Euros 350.000 vat (tax) paid.

How would, if at all, this affect us in exporting the boat to NZ???
Would we receive back the Vat already paid thus reducing the cost of the boat and helping to pay the import tax (Gst) upon arrival in NZ?

Any knowledge on this greatly appreciated.

Cheers
Kiwikats

[Charlie]

Come come:

When was the last time you got anything back from the government. LOL. But really I have no idea on VAT.

[RaptorDance]

The VAT tax mentioned is imposed by the European Union.

I'm no NZ Tax Accountant (I only play one on TV... only kidding) - but I doubt that having paid the VAT will help you with the NZ GST.

You'll need to find out the rules for NZ Residents importing used vessels. It's unlikely that taxes paid to other countries will help you much.

Why not just keep cruising!

Cheers,
Bill

[Kiwikat]

Originally Posted by RaptorDance

The VAT tax mentioned is imposed by the European Union.

I'm no NZ Tax Accountant (I only play one on TV... only kidding) - but I doubt that having paid the VAT will help you with the NZ GST.

You'll need to find out the rules for NZ Residents importing used vessels. It's unlikely that taxes paid to other countries will help you much.

Why not just keep cruising!

Cheers,
Bill

I guess I didn't explain myself properly. I have no problem with knowing the rules for importing into NZ. What I'm getting at I suppose is that somewhere along the "grapevine" I heard that the overseas vendor could somehow claim the tax back as the boat was being sold to overseas as an export. Therefore making my buy price cheaper.

I know it's a long shot but we are not ready to approach a broker yet and ever the optimist one can only live in hope.

Cheers

[Steve Pope]

I would assume that if you have the paperwork for the VAT paid and you are exporting the yacht you should have no trouble getting the VAT back. probably a lot of paperwork though. I know if I buy parts from the UK and they are exported to me in NZ there is no VAT. Of course you will have to pay Helen her 12.5% once you arrive if you mean to keep it here, if it is foreign flagged (british or whatever) you may get a grace period where you can pay the GST or move it out of NZ waters. I'm not sure what happens if you re-enter NZ again. I seem to remember that in Aus you get hit as soon as you return the 2nd time. Talk to customs in the country you are purchasing it from. You can always ask the question hypothetically.