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-   -   Why are yachts so much cheaper in Europe? (https://www.cruisersforum.com/forums/f47/why-are-yachts-so-much-cheaper-in-europe-152506.html)

svlamorocha 07-09-2015 12:13

Re: Why are yachts so much cheaper in Europe?
 
Quote:

Originally Posted by Kenomac (Post 1908297)
There are two separate issues, but you keep trying to lump them both into one.

1. Point of sale needs to be in a VAT free economic zone such as Guernsey, Jersey, Gibraltar (good luck with Sark since they don't have a port) and the island is surrounded by cliffs and 10 meter tides) or outside the EU in order to avoid the point of sale (time of sale) VAT due.

2. Following the time of sale transaction, the new non EU owner has up to 18 months to reset the VAT clock by leaving the EU in a non EU country, it takes only a day. Guernsey and Jersey do not work for this.... But somehow Gibraltar does. Unless a customs bonding arrangement has been made via local EU authorities, then the time allowing inside the EU can be extended up to three years without leaving the EU or paying the VAT.

Spot on. Regarding Gibraltar vs Guenrsey, the explanation is that Guernsey is within the Customs territory of the Community, but NOT within the Fiscal territory of the Community, while Gibraltar is outside both.

C

boatman61 07-09-2015 12:18

Re: Why are yachts so much cheaper in Europe?
 
Quote:

Originally Posted by Dr. Sea (Post 1908188)
Buying steel to sail the South Pacific is a waste of precious dollars unless you are including Antarctica in your islands itinerary.

That's MY sales pitch booga'd..:facepalm:

OP.... 'Coz we're all Broke...:biggrin::biggrin::biggrin:

K_V_B 09-09-2015 20:51

Re: Why are yachts so much cheaper in Europe?
 
Quote:

Originally Posted by MarcoDePolonia (Post 1909124)
Guernsey, Jersey & Man NEVER were EU territory for VAT purposes.
Google "guernsey + vat".
Guernsey and VAT - Guernsey
It takes 5 seconds to get the RIGHT answer.
Less then writing MISLEADING post.

To get to the right answer you first must correctly read the question. I did nowhere claim that you had to pay VAT in Guernsey, I just claimed that going to Guernsey with a boat that is temporarily imported in the EU does not reset the VAT clock.

And a bit of research supports this. Let's start with the horses mouth: The EU itself:

Some Frequently Asked Questions about the rules for private boats - European Commission

Quote:

Non-EU vessels which are intended for re-export may be temporarily be brought into and used for private purposes in the EU, or more strictly in the 'customs territory of the Community', (which includes our territorial waters) without customs duties or Value Added Tax (VAT) needing to be paid. But this can only be done by persons who are not EU residents - in official terms - by people who are 'established outside that territory'. This facility is thus NOT available to EU residents.
The boats concerned have to be placed under the 'temporary importation procedure' (TI) with Customs and the period of use in the EU is limited in time. When the time is up the boat has to leave, in official jargon this period is called 'the period of discharge'. The re-exportation of the goods from the customs territory of the Community is the usual way of ending or 'discharging' a temporary importation procedure. If the boat does not leave before the end of that time then customs duty and VAT become due.
The crucial item here is "customs territory of the community". To reset the VAT clock you must leave this geographical area.

The definition of what is, and what is not, part of the "customs territory of the community" is defined in article 3 of the code, here:
https://eur-lex.europa.eu/LexUriServ/...0070101:EN:PDF

There it says that the customs territory includes, amongst other things:
Quote:

the territory of the United Kingdom of Great Britain and Northern Ireland and of the Channel Islands and the Isle of Man,
So here you have it.

Interestingly, according to this document Heligoland is not part of the customs territory. So theorethically one would be able to reset the VAT clock there. But I find no information there about people who actually did this.

K_V_B 09-09-2015 21:27

Re: Why are yachts so much cheaper in Europe?
 
Quote:

Originally Posted by Kenomac (Post 1908297)
1. Point of sale needs to be in a VAT free economic zone such as Guernsey, Jersey, Gibraltar (good luck with Sark since they don't have a port) and the island is surrounded by cliffs and 10 meter tides) or outside the EU in order to avoid the point of sale (time of sale) VAT due.

The point of sale does not have to be in a VAT free zone to get a VAT refund though.
But you need a merchant that cooperates. (If he doesn't, take your business elsewhere). You need to fill out some forms. Then when you leave you need to clear customs, and have them stamp those forms. Customs will check the the merchandis is on board. Then you can reclaim VAT, either directly from the original seller, or via an agency.
In Switzerland people living near the border do this all the time. Get VAT refunds is a popular pass time here


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