Originally Posted by pskudlarski
Hello, we have purchased a HR on Grenada
and would like to take it to Europe
. I wonder if we could avoid VAT since the yacht was built in Sweden
and it was owned (three owners and 5 years back) by a German. Is there a chance we can trace it by ship number? We have no contact for that owner. We have dual US and European citizenship if it matters. Thanks.
You have stated that you have dual citizenship, but are you EU residents? The residency characteristic may make for a distinction wherein if the boat owner is not a EU resident or an EU corporation, you could realize a temporary import and have the 18 month clocking. Sorry, I am a bit uncertain on that aspect, would need to investigate a bit further to be assured that it is a potential VAT and import duty waiver strategy.
A potential useful reference in this regard, note this law firm has a EU yachting expert, i.e., someone that may be worth discussing your situation with:
Value Added Tax (VAT) is a tax scheme that was established by the EU. It is a tax on what is referred to as consumption
and is levied by the government
of each member
state. As a consequence VAT is chargeable on boats imported into the EU and on boats purchased and owned by residents of the EU who are using their boat within the EU. VAT is also chargeable on boats, irrespective of ownership
, which spend more than 6 months in any calendar year cruising in the EU, although there is scope
to enable an owner to use a yacht in the EU without being liable for VAT. EU residents should only use a vessel in the EU if it is VAT paid or deemed VAT paid
Can a boat lose its VAT paid status?
If a yacht with VAT paid status is exported from the EU it will usually qualify for relief from having to pay VAT again if it is imported back into the EU within 3 years of its export, provided that it is imported by the same person who exported it, i.e. no change of owner whilst outside the EU. However, this will not exempt it from any customs
duties that maybe apply. If your boat will be exported for more than 3 years you should check the position with customs.
Enjoy your new boat