How much do I have to pay buying a EU tax paid boat?

[skip_s]

Hi all, i am a newbie lurking around for some months just gathering some information.

I am a South Korean citizen, and I do not resident in EU.

I am planning to buy a second handed "tax paid" boat from France in near future and have a question for VAT(value added tax).

Asking price for the boat is USD 23K and advertised as "tax paid".

In case of my buying the boat, how much do I have to pay for the boat?
That is, if the previous owner has paid the VAT, then can i get a price reduction from the USD 23K?

Thank you for your interest and have a good day~

Skip S

[skip_s]

Ah.. I mean if amount of USD 23K includes VAT, then I wonder if I could get the reduction of VAT that previous owner paid.

[manitu]

The tax for EU is paid , so you can keep it in the EU for as long as you want. If you want to take it home or to an other country for a longer period , consult the authorities of given country.

No , this is an import/new product tax , and it has to be paid in full , one time.
.manitu

[skip_s]

Originally Posted by manitu

The tax for EU is paid , so you can keep it in the EU for as long as you want. If you want to tak it home , or to an other country for a longer period , consult the authorities or given country.

No , this is an import/new product tax , and it has to be paid in full , one time.
.manitu

Oh. I understand the paid tax is for cruising European water for extended period of time and it has nothing to do with the VAT.

Much Thanks to you .

Have a great day(or maybe night, since i am another side of globe and in morning time )

[manitu]

No , it is a value added tax that needs to be paid on boats kept in the EU.
Eu residents need to pay this on day one. Foreigners kan keep a boat in eu for 18 months, before taxation occurs.
If the tax is paid , you can keep the boat inside EU borders forever.
If you buy a boat where the tax is not paid , you, as a foreigner (unless you have a address in a EU country) can keep it inside EU waters for maximum 18 months.

On a used tax paid boat, you dont't pay again, nor get a refund, when it is sold and bought.


Boats used in commercial charter or leasing are exempt from VAT , until they are sold on the private market.


.manitu

[Jack C]

Important to make sure the purchase is actually made in the EU, otherwise you can lose the tax paid status.

[skip_s]

Originally Posted by manitu

No , it is a value added tax that needs to be paid on boats kept in the EU.
Eu residents need to pay this on day one. Foreigners kan keep a boat in eu for 18 months, before taxation occurs.
If the tax is paid , you can keep the boat inside EU borders forever.
If you buy a boat where the tax is not paid , you, as a foreigner (unless you have a address in a EU country) can keep it inside EU waters for maximum 18 months.

On a used tax paid boat, you dont't pay again, nor get a refund, when it is sold and bought.


Boats used in commercial charter or leasing are exempt from VAT , until they are sold on the private market.


.manitu

Great, I got it.

Much thanks.

skip S

[skip_s]

Originally Posted by Jack C

Important to make sure the purchase is actually made in the EU, otherwise you can lose the tax paid status.

Oh, I see.


Great. Thank you.

skip S

[SaltyMetals]

Skip,

The VAT is not a cruising tax. It is a sales tax that is paid when the boat is first sold by the manufacturer and the boat will then live with its VAT paid status for the rest of its life (subject to some other conditions like max 3 years outside the Eu). The only way to avoid the EU VAT (typically 20%) is when the boat is bought as new and is bought for export (Non VAT paid) and there is a time limit for you to export the boat which i believe is 3 months. Not to be confused with the 18 month limit for non VAT paid boats entering the EU.

If you buy a second hand boat which is EU VAT paid it is important that the change of ownership occurs while the boat is in EU waters. This will preserve the VAT-paid status of the boat. Your residence &/or nationality has nothing to do with the VAT status of the boat. It is not possible to get the 20% VAT reimbursed on a second hand boat if you decide to permanently leave the EU with the boat. If the boat was owned by a VAT registered company right from the start of the original purchase then you might be able to get the 20% VAT deducted from your purchase but you need to check this out carefully.
Andrew

[SaltyMetals]

If your intention is to eventually leave the EU with the boat then you should be looking for a secondhand boat which is non VAT-paid. You will find a number of them in the secondhand market, Turkey in particular, but it then means that you will be subject to the usual 18 month time limit for the boat to be inside the EU. There are ways of re-setting the 18 month clock so you can actually spend a lot longer in the EU after re-setting the clock by going to non-EU countries for a few days. Very straightforward but you need to investigate.
Andrew