VAT reclaim for Services in Spain

[AJAL]

Hi all,
Has anybody had experience with reclaiming VAT paid in Spain for services when the boat is not Spanish or EU flagged, and the owner is also non EU? Services such as marina, haul out, paint etc. Fuel is not a service but also may be of interest.
Cheers and thanks in advance,
Joel

[nmuir]

I spent a great deal of time looking at VAT over the past 18 months for foreign-flagged yachts / non-EU resident owners. I looked at three main areas: trying to achieve VAT off at import, VAT exempt supplies and services in country, and reclaiming VAT in Spain. Whilst each is possible according to the documentation I tracked down it proved almost impossible to find brokers or people to actually make it happen.

VAT exempt at import: Allowed under EU tax law is to import 'ships spares' as VAT exempt for a foreign flagged vessel. Ref https://ec.europa.eu/taxation_customs/sites/taxation/files/resources/documents/customs/customs_code/guidance_ship_supplies_en.pdf. I never could get this in place despite dealing with multiple brokers and agents, with the most frank person admitting 'it was just not worth it' - and this was for an item that had 2,000 EU of VAT applied. I believe the brokers that do it only deal with superyachts and 5 to 6 figure tax bills, and charge accordingly!

VAT off at source: I did have some luck on services with a boatyard not charging VAT and putting the following on a invoice."el sujeto pasivo esta exento de iva ya que cumple con los terminos previstos en el articulo 22 apartados unos a siete de la ley 37/1992, de 28 de diciembre del impuesto sobre el valor anadido."
-------------
Google translate says in English this is: "The taxpayer is exempt from VAT since he complies with the terms provided in article 22, sections one to seven of Law 37/1992, of December 28, on the added value tax."
The boatyard did this on their own accord having had experience working on foreign-flagged boats earlier. I did not do further due diligence on the articles or laws they referenced - just happily paid the invoice!

VAT refunds: There are other postings about this if you do a search. From memory there are challenges with finding sellers that process their end of the transaction as not many sellers support it. What I also found is the challenge in proving the product is leaving the country when one is NOT departing from an airport. I could not find port-based customs that could ratify the items were leaving the country upon our departure. Being a non-commercial boat came into play here.

I hope you are more successful that me, and if you are please post your findings so we can build our knowledge base! Also feel free to PM me for more details if you like.

[more]

Originally Posted by dr.j.levy

Hi all,
Has anybody had experience with reclaiming VAT paid in Spain for services when the boat is not Spanish or EU flagged, and the owner is also non EU? Services such as marina, haul out, paint etc. Fuel is not a service but also may be of interest.
Cheers and thanks in advance,
Joel

In reality you like customer don't pay VAT and you do not have touch with taxman.VAT pay company tax number who give you service and dealing with taxman, normally company charge bill to you.somtime customer don't pay but taxman take vat from a company( 100.billion € yearly in EU.

you use taxman service. police,military,local politician,fire fighting ,hospital,garbage rescue,marine life protection and many other and now you want return VAT. you can dream next time if you want return VAT don't use any service and you are fine.

Croatia army buy in France Reafael fighter and must pay VAT 200 million € because EU rules.
also US government gift 86 bradly and army must pay 50 mil€ VAT. but Croatia army next month want return from taxman this money(i think so)
in reality you receive service on Spain soil you must pay tax.
but big shipyard can avoid VAT ,but on base export.

[boatman61]

I have helped an Aussie do this, he had bought a new Lagoon 380 and we picked it up in Les Sables. He bought a lot of stuff extra like a Smart TV, various other stuff for the boat and we then sailed South stopping at Cascais for the after run in service on the engines then on to Gran Canaria.
When we arrived I took him round to the C&E offices in Las Palmas where we collected the appropriate forms, after filling them in we returned to the office with all the relevant reciept's, got them checked then finished filing the claim.. I asked him to let me know how he got on.
3.5 months after he had sailed for the Caribe I got an email saying his claim in full had been paid into his account.
I don't think you can claim VAT for goods and services back until the last port before exiting EU waters

[more]

Originally Posted by boatman61

I have helped an Aussie do this, he had bought a new Lagoon 380 and we picked it up in Les Sables. He bought a lot of stuff extra like a Smart TV, various other stuff for the boat and we then sailed South stopping at Cascais for the after run in service on the engines then on to Gran Canaria.
When we arrived I took him round to the C&E offices in Las Palmas where we collected the appropriate forms, after filling them in we returned to the office with all the relevant reciept's, got them checked then finished filing the claim.. I asked him to let me know how he got on.
3.5 months after he had sailed for the Caribe I got an email saying his claim in full had been paid into his account.
I don't think you can claim VAT for goods and services back until the last port before exiting EU waters

how you export service like marina fee. or restaurant bill

[Paul Carey]

We kept a boat for 12 years in Turkey , i.e. not in the European Union ,,,When buying (usually engine) spares in England the seller & they have to be registered with UK Customs & Excise can issue a form V555 this can then be taken to the customs office to be stamped when leaving the UK/ EEC directly , or as often in our case we flew to Kos (Greece being in EEC) & the Greek customs man in the ferry port to nearby Bodrum would stamp as leaving EEC , We would then send that stamped form bac to the seller whom would credit our a/c ...

[letsgetsailing3]

Originally Posted by more

how you export service like marina fee. or restaurant bill

A restaurant bill?


You got takeout for export?


lol

[boatman61]

Originally Posted by more

how you export service like marina fee. or restaurant bill

Now your being silly..
Bills for goods and services (work) purchased on boat.
I did/do not mean marina fee's, restaurant meals etc.. that would be like trying to claim back VAT on a city break in Madrid when one flies home.

[goboatingnow]

Non commercial vessels are not under EU tax codes entitled to any reclaim of VAT. There is no such thing as “ yacht in transit “ relief. ( yacht in transit rules used apply before the single European act ) There is only one exception

Where you buy a boat , it comes under the “ new means of transport “ vat rules. These are different to normal goods and services ( like boat parts subsequent to the sale )

With a new means of transport you can , following a paper process , not pay or reclaim vat from the seller on the documented proof of export ( usually importation proof )

This would include anything fitted to the boat by the selling dealer

Secondhand in general none of this applies.

Vat refund schemes that you see at airports are specialised systems where specific retailers sign up to a refund scheme. This is limited to high value touristy stuff.

It would be a very foolish retailers who removes vat on the dubious claim of yacht in transit, the retailer remains legally liable for vat in all cases.

Most will only do it under specific and legally allowed circumstances and typically ask you to ESCROW or pay the vat upfront

In essence for the private non eu yacht owner you have no recourse. You just stump up the vat like everyone else.

Again , if you buy anything within the customs union you pay vat , merely cause you get on a plane does not entitle you to a vat refund. The rules for zero vat sales are quite complex and typically involve a registered courier or third party delivery mechanism that verifies the goods are being exported. That does not include you standing in the shop handing over your credit card.

[goboatingnow]

Originally Posted by Paul Carey

We kept a boat for 12 years in Turkey , i.e. not in the European Union ,,,When buying (usually engine) spares in England the seller & they have to be registered with UK Customs & Excise can issue a form V555 this can then be taken to the customs office to be stamped when leaving the UK/ EEC directly , or as often in our case we flew to Kos (Greece being in EEC) & the Greek customs man in the ferry port to nearby Bodrum would stamp as leaving EEC , We would then send that stamped form bac to the seller whom would credit our a/c ...

V55/5 is a vehicle registration form , it should never be used in relation to a boat

The U.K. current “sail away “ scheme remains in place details here https://www.gov.uk/guidance/sailaway...eu-notice-7032

Form 436 being the relevant form for the seller.

Note spares and accessories are not covered unless essentially supplied under the boat sale

The arrangement applies to secondhand vessels but clearly the seller has to be vat registered

[goboatingnow]

Originally Posted by dr.j.levy

Hi all,

Has anybody had experience with reclaiming VAT paid in Spain for services when the boat is not Spanish or EU flagged, and the owner is also non EU? Services such as marina, haul out, paint etc. Fuel is not a service but also may be of interest.

Cheers and thanks in advance,

Joel

Note in absolutely all cases even commercial , services provided in the country in question cannot be reclaimed . So services, marina fees haul out etc , cannot be “ exported “ and were never subject to vat reclaim.

Only goods are covered and only in specific circumstances

In europe the vast majority of cost in fuel is duty not vat. Duty can never be recovered anyway.

[Joh.Ghurt]

Originally Posted by goboatingnow

Note in absolutely all cases even commercial , services provided in the country in question cannot be reclaimed . So services, marina fees haul out etc , cannot be “ exported “ and were never subject to vat reclaim.

Only goods are covered and only in specific circumstances

This matches my experience. One important aspect is that the VAT is only refunded once the goods leaves the VAT-zone. Usually you have to get the proper forms stamped by customs on exit and return them to the vendor. He then can use those instead of money in his VAT-payment. If a vendor doesn't trust you very much, he'll charge the VAT first and you'll get it back later once you handed in the proper forms.

This is also the reason why trying to export the lunch isn't easily possible. If you eat it before leaving the VAT-zone, you haven't exported it.

[more]

Originally Posted by Joh.Ghurt

This is also the reason why trying to export the lunch isn't easily possible. If you eat it before leaving the VAT-zone, you haven't exported it.

But Mr . dr.j.levy enjoy in marina in Spain, eat-in restaurant in Spain but leave Spain and go in toilet in Gibraltar. he meals successfully export in Gibraltar he have proof

[letsgetsailing3]

Originally Posted by Paul Carey

We kept a boat for 12 years in Turkey , i.e. not in the European Union ,,,When buying (usually engine) spares in England the seller & they have to be registered with UK Customs & Excise can issue a form V555 this can then be taken to the customs office to be stamped when leaving the UK/ EEC directly , or as often in our case we flew to Kos (Greece being in EEC) & the Greek customs man in the ferry port to nearby Bodrum would stamp as leaving EEC , We would then send that stamped form bac to the seller whom would credit our a/c ...

I wouldn't base anything, anywhere else, on what someone did in Turkey.

[Joh.Ghurt]

Originally Posted by more

But Mr . dr.j.levy enjoy in marina in Spain, eat-in restaurant in Spain but leave Spain and go in toilet in Gibraltar. he meals successfully export in Gibraltar he have proof

I doubt the customs officials will consider the lunch in your belly as in it's original state and certify it's been properly exported without having been used on Spanish territory.

If however you can present the results of your processing to custom and have a reasonable proof of it's value - eg you're a goose laying golden eggs - you might get away by claiming the lunch has been installed and not be consumed. In this case they might certify a valid export of the good. You just have to be careful when entering your country of destination to properly declare the goods. In the previous case of the lunch being processed into golden eggs, they importing country will not accept the costs of the lunch as value, but rather asses it's value on the weight in gold.

In this case the best strategy would be to forgo the VAT-return for the lunch and try to hold back the laying of golden eggs until after clearing the customs in the country of arrival.