New Boat and EU VAT....How Long Till You Have to Leave EU?

[EdenRose]

This is a specific question on EU VAT issues on new boats. Almost everything we find so far is about boats entering the EU and the 18 month limit or buying used boats VAT or not VAT Paid...those are not our issues.

1. We are non-EU residents and non-EU citizens
2. We are buying a new boat in EU...so NOT VAT Paid
3. How long from the time we officially take possession and sale is final do we have to sail the boat out of the EU?
4. How do you get a definite answer?

Are we covered by the TI (Temporary Importation) limit of 18 months as if we where entering the EU with a foreign flagged and owned boat or must we actually EXPORT it out of the EU directly (by sailing to the UK upon taking possession for example) or can the boat stay in the EU up to 18 months (yes...yes we know about the Schengen limit...lets leave that out of the discussion).

Thank you for helping with this....we hear different things and the EU Customs offical documents mainly refer to issues of boats arriving into the EU, not new boats purchases for eventual export.

Thank you.
Harley and Susan
SV Prudence

[boatman61]

Sail it to the UK and when you return have evidence that the boat did leave the EU (not just your stamped passport) in the form of a marina bill at a minimum to qualify for the 18mth ticket..
I suspect it is 30 days to export, but I could be wrong and its 3 months.

[EdenRose]

Originally Posted by boatman61

Sail it to the UK and when you return have evidence that the boat did leave the EU (not just your stamped passport) in the form of a marina bill at a minimum to qualify for the 18mth ticket..
I suspect it is 30 days to export, but I could be wrong and its 3 months.

Aware of the documentation requirements but still hoping for a definitive answer on how long do we have to leave upon purchase and delivery to us in the EU before VAT is an issue. 30 days, 3 months or 18 months. We have heard many answers. The rules for entering from outside the EU of "Not VAT paid" are plain...just not the rules for purchase of a "Not VAT paid" boat for export.

[goboatingnow]

Originally Posted by EdenRose

This is a specific question on EU VAT issues on new boats. Almost everything we find so far is about boats entering the EU and the 18 month limit or buying used boats VAT or not VAT Paid...those are not our issues.



1. We are non-EU residents and non-EU citizens

2. We are buying a new boat in EU...so NOT VAT Paid

3. How long from the time we officially take possession and sale is final do we have to sail the boat out of the EU?

4. How do you get a definite answer?



Are we covered by the TI (Temporary Importation) limit of 18 months as if we where entering the EU with a foreign flagged and owned boat or must we actually EXPORT it out of the EU directly (by sailing to the UK upon taking possession for example) or can the boat stay in the EU up to 18 months (yes...yes we know about the Schengen limit...lets leave that out of the discussion).



Thank you for helping with this....we hear different things and the EU Customs offical documents mainly refer to issues of boats arriving into the EU, not new boats purchases for eventual export.



Thank you.

Harley and Susan

SV Prudence

The strict interpretation is that you must export it and import it to claim TIP. However in practice this is simply overlooked as you are entitled to the tip.

Again you are allowed 30 days after purchase to export the boat.

So complete the deal and claim the TIP.

[EdenRose]

Originally Posted by goboatingnow

The strict interpretation is that you must export it and import it to claim TIP. However in practice this is simply overlooked as you are entitled to the tip.

Again you are allowed 30 days after purchase to export the boat.

So complete the deal and claim the TIP.

Thank you (I asked a similar question of you in a different thread).
Do you know of any documentation of the rules? I only find information on the EU Customs Tax sites about brining the non-EU boat into Europe....not originating in Europe with a new sale.
We are buying in The Netherlands with the thought of sailing around Northern Europe for a year or so. Is it advised to go to UK in the first 30 days or is there a way to get a safe way to claim TI immediately on purchase and get a bit longer. We will be going to UK anyway within our first 90 days, but would appreciate some flexibility.

[Joh.Ghurt]

Originally Posted by EdenRose

Do you know of any documentation of the rules?

There's a reason for not finding any good answers. The rules say: If it's for use in the EU, you have to pay VAT. If you export it, you can reclaim the VAT as a non-resident. That's it.

You now want to play around with is what is considered "use in the EU", what would be "in the process of being exported" and hope the customs guy rifling through your boat's papers sees it the same way.

Best just don't play stupid games. Once you take possession of your boat sail it over to the UK, get proof the boat's been there for a few days and then import it back as per the rules. This way you won't be dependent on how any customs official feels on the day.

Is that so hard?

[goboatingnow]

Again the rules are simple the interpretation can be slightly differebt

After buying it you have 30 days “ grace “ to export it. Note the VAT is the sellers responsibility and the normal method is to charge you vat and return it to you on proof of export

Of however the seller is a trusting type , you may complete the transaction without the vat cash flow issue.

TIP is relief from “ import “. Hence technically you must be “ importing “ the boat. To do that you must first export it.

But in practice since TIP has no associated paperwork ( that’s changing this year )you just claim it. Customs have typically simply ignored the technicality of requiring an export

As was said if your anal about this sail it out of EU after purchase And come back

Note you will of course have to claim tip on entering the U.K.

You will not get an official answer because this is not an official process.

Again it’s 30 days after purchase otherwise you pay vat. But a seller is being remiss in at not least ESCROW ing the vat until you show proof of export.

[Joh.Ghurt]

Originally Posted by goboatingnow

As was said if your anal about this sail it out of EU after purchase And come back

In my experience, people not understanding the rules or lacking experience with them to a point where they have to ask such questions better stick to them to the letter. This way nobody needs to remember what to say and the AIS-track as well as the ships log will match the told story.

[gezza]

A question from ignorance (at the risk if a patronising comment - please spare me).
I will be buying a yacht most likely in Greece. I am non EU resident and will register the boat in Australia.
Is taking the yacht to Turkey (or Croatia) effectively the same thing as taking it to the UK in order to be regarded as exported and imported from EU? I realise that they are some potential customs agreements with these countries. But its a lot quicker and more expedient from Eastern Med than the UK.
Clarification would be much appreciated

[Toys_with_time]

Originally Posted by gezza

A question from ignorance (at the risk if a patronising comment - please spare me).
I will be buying a yacht most likely in Greece. I am non EU resident and will register the boat in Australia.
Is taking the yacht to Turkey (or Croatia) effectively the same thing as taking it to the UK in order to be regarded as exported and imported from EU? I realise that they are some potential customs agreements with these countries. But its a lot quicker and more expedient from Eastern Med than the UK.
Clarification would be much appreciated

My understanding is that it just needs to be a non EU country. We bought in France, registered it as Australian and did the temporary export / import thing via an agent (without actually leaving France) then sailed to Morocco within 90 days and spent 3 days there and re-entered EU via Spain. We found throughout Europe that everything seems to be very open to interpretation by the local customs office and if they take a dislike to you then they can make life hell for you. We found Greek bureaucracy very, very paper heavy. In France we learnt when dealing with officialdom to talk about “Le Rugby”, in Greece and Italy ask them if they have any relations in Australia and in Turkey do nothing without an agent (but gaggle over the fees first) and in all places just learn to
be patient and above all non belligerent.

[goboatingnow]

Originally Posted by gezza

A question from ignorance (at the risk if a patronising comment - please spare me).
I will be buying a yacht most likely in Greece. I am non EU resident and will register the boat in Australia.
Is taking the yacht to Turkey (or Croatia) effectively the same thing as taking it to the UK in order to be regarded as exported and imported from EU? I realise that they are some potential customs agreements with these countries. But its a lot quicker and more expedient from Eastern Med than the UK.
Clarification would be much appreciated

Croatia no , Turkey yes. Other options are Montenegro or Albania

Again , just to point out flag registration is irrelevant in regards to vat.

[boatman61]

Yes.. Sailing her to Turkey and spending a weekend or more there (worth the experience of a pleasant country and people) will be enough to be counted as export.

[Stewie12]

Best you engage the services of a customs agent in the Netherlands and get up to date and professional advice as you have too much to lose.

[goboatingnow]

Originally Posted by Stewie12

Best you engage the services of a customs agent in the Netherlands and get up to date and professional advice as you have too much to lose.

I think your mixing up two different threads