Taxes for Buying Second Hand , VAT Not Paid , Boat in Martinique

[Dsanduril]

VAT = Value Added Tax.

If you're American, in simplest terms think of it as a sales tax. If the price you are quoted for a boat does not include the VAT then it will get added to your bill just like a sales tax. There are differences in how a VAT and a sales tax work and are collected, but from a consumer's perspective the end result is pretty much the same, it's a tax that gets added on to items you purchase and is based on the value (sales price) of the item purchased. VAT rates run from about 15% to 25% in Europe, so can be a significant part of the cost of something you purchase.

[Kita]

It going to take me a few to stop laughing,,I guess it takes an American to ask such a silly question.. Man ya got me... Ok,so we got vat, & reg. & sales tax, anything else they add to the price of a boat that comes from outside the US?...That`s too funny, got to be from the US to not know about VAT fees!! So busted..

[Fearnow]

Kita? You're a butt head. Have you been drinking again? You imply that you are stupid if you are American?

[Kita]

Busted again! Burp,, man you guys are good! burrrp,yep

[Kita]

Been drinking I mean...too funny

[Fearnow]

Just kidding about the drinking, not being a butt head.

[Kita]

All good for a chuckle. But they are very real questions, I have never bought anything outside the US & am shopping Cats & will buy one to live on as soon as the houses sell. So I really do need to know what else is there that I don`t know about cause it seems as though everything I like is in the islands cept a few in the Med & I don`t really want to go there.. 15/25% vat, & sales tax 7% (?) of a 200000.00 boat is making my boat smaller & smaller.. Also if the boat has a US reg there are no VAT fees?? Is this true? So just for giggles, lets say the boat price is 150000.00 US bought in BVI without Vat paid, what would it cost to sail it out of there? Not fuel & everything I mean money out of pocket to take possession.

[goboatingnow]

Originally Posted by Kita

All good for a chuckle. But they are very real questions, I have never bought anything outside the US & am shopping Cats & will buy one to live on as soon as the houses sell. So I really do need to know what else is there that I don`t know about cause it seems as though everything I like is in the islands cept a few in the Med & I don`t really want to go there.. 15/25% vat, & sales tax 7% (?) of a 200000.00 boat is making my boat smaller & smaller.. Also if the boat has a US reg there are no VAT fees?? Is this true? So just for giggles, lets say the boat price is 150000.00 US bought in BVI without Vat paid, what would it cost to sail it out of there? Not fuel & everything I mean money out of pocket to take possession.

You will pay vat on any boat once you remove it from the customs terrority of the EU ( which includes a few carribean islands ) . Even then you have 18 months before its technically due

Dave

[Nicholson58]

Originally Posted by goboatingnow

You will pay vat on any boat once you remove it from the customs terrority of the EU ( which includes a few carribean islands ) . Even then you have 18 months before its technically due

Dave

I suggest you come to the Great lakes and buy a gently used, sweet-water boat and pay Michigan 6% - or not, if you export it to your home state or better yet, Delaware.

BTW, I am really confused now. I thought only boats that remain in the EU pay EU VAT. If all of the boats made in France had to pay VAT to go to the US, it wouldn't happen. Last I knew, you could sail your non-EU boat in the EU for up to 18 months before the tax man might darken your door. EU VAT is an EU property tax. I'm pretty sure they don't expect foreigners to pay it on exported goods. But, don't ask us dummies, look it up, ask a broker, anyone who might actually have facts.

[goboatingnow]

BTW, I am really confused now. I thought only boats that remain in the EU pay EU VAT. If all of the boats made in France had to pay VAT to go to the US, it wouldn't happen. Last I knew, you could sail your non-EU boat in the EU for up to 18 months before the tax man might darken your door. EU VAT is an EU property tax. I'm pretty sure they don't expect foreigners to pay it on exported goods. But, don't ask us dummies, look it up, ask a broker, anyone who might actually have facts.

SORRY, mea culpea, my sentence should have read " you will NOT pay VAT" I actually do have the facts having bought and sold many boats as a business for a while.

Dave

[boatman61]

Originally Posted by goboatingnow

SORRY, mea culpea, my sentence should have read " you will NOT pay VAT" I actually do have the facts having bought and sold many boats as a business for a while.

Dave

GBN has it right...

[goboatingnow]

EU VAT is an EU property tax

Just a small point VAT is not a property tax, its a transaction tax( ie a form of sales tax) , its paid on goods AND services. IN addition, VAT can be paid against an asset transaction multiple times in its life.

VAT is technically due to be accounted for , on every import, export , sale or purchase, on any transaction involving anyone in the EU.( or new or secondhand etc no matter, exclusions and reliefs notwithstanding)

Dave

[Kita]

OK so I guess it works like I buy in BVI & pay VAT with price of the boat, then if I bring it to the states when I reg it I pay sales tax? What I am asking is do I pay sales tax & VAT in BVI & then the US hits me again when I register it? I am trying to find out what the real price is, boat sells for 150, how much am I really out of pocket.. I will also be looking real hard in the states & would really love to buy one that is in the northeast, FL would be even better, I know how it is done here in the US, but out of the US not so much, thanks everyone!! Also if I am going to live aboard do I have to reg it in US? I mean if the boat is not in the US & if not how does that work??

[goboatingnow]

What I am asking is do I pay sales tax & VAT in BVI & then the US hits me again when I register it?

The BVI is not in the EU, so its not EU VAT we are taking about. The french and some other dependant terrorities are in the EU.

But in general if you are removing a boat you do not pay VAT.

Dave

[boatman61]

Originally Posted by goboatingnow

The BVI is not in the EU, so its not EU VAT we are taking about. The french and some other dependant terrorities are in the EU.

But in general if you are removing a boat you do not pay VAT.

Dave

I bought a Bene 331 in the BVI's... paid no taxes (US owned/Moorings) but had to pay VAT entering the EU...
I chose the Azores @ 15% on $60,000.
You also should pay no VAT anywhere in the Caribbean... regardless of whether its been paid once or never... however you will have to pay the Tax (in theory) if you keep it in EU waters (SMX/St Barts/Martineque etc) for more than 18 months..
In reality no one gives a Poo.. unless you upset the Gendarmerie or an influential local... this attitude prevails in much of Europe with regard to sailboats..