avoiding VAT

[jckb]

Originally Posted by savoir

This decision might well decimate the charter biz in Croatia. Interesting times ahead.

Charter still thrives in Greece . . . and in fact grew markedly after Greece joined the EU. So I don't see the basis for this statement.

As in Greece, pre-EU heavy bureaucratic and cost biases against foreign companies operating charter in Croatia made many of them decide to leave. In time, these biases will be chipped away. This should introduce more competition into the charter market, and drop prices.

I'd expect the charter market to grow.

[David_Old_Jersey]

ex Charter Boats will still be offered for sale VAT unpaid - Croatia just one less place to keep a VAT unpaid boat for EU Citizens. Impact on ease of resale a very minor effect (if any) on the Charter Companies, more than outweighed by the benefits of being inside the EU.

[K_V_B]

Originally Posted by savoir

The owners will be liable for VAT. Take a look at the listings of any broker in Croatia. Most boats are marked " tax unpaid ".

Croatia already had a VAT before joining the EU, and it was quite stiff at 25%. Charter companies however have never had to pay this VAT, and this will remain the case. VAT is an end user tax, and companies can reclaim VAT on purchases and investments. (As a teenager I wrote the software my dad still uses to prepare the VAT statements for his company. I know a few things about how VAT works).
So a charter company does not have to pay VAT on yachts purchased wether Croatia is in or out of the EU.

[krissteyn]

keeping your boat in Albania - search for Orikum Marina - but if you have a 9' draft , you may have a problem !

[Palarran]

Does anyone have an experience with Saranda, Albania as a port for resetting your VAT clock? It is the closest to Greece. I would guess that the number of boats needing to visit Albania will quadruple next year. In other words, 100

[krissteyn]

We visited twice and , not sure about the VAT , but certailnly reset our clock - as VAT is already paid on Footprints , that wasn't the option , but certainly reset the greek 3 month rule and the visa requirements.
As I came back with a British registered boat - all sorts of things changed.

Can certainly reccomend Saranda - Agim , the local agent/operator is a pleasure to deal with and his assistant Very pleasing on the eye

we hired a car for 40 eu/day and it was well worth it. Easy negotiating all the sites and stuff and the local signs good enuff and drivers Ok

Kris

[jckb]

Montenegro is better for yacht support than Albania, and a good place for wintering, too. Easy access to Cavtat (Dubrovnik) and Tivat airports.