Buying about in SPAIN - VAT not paid

[Natalie_Steve]

Hi,


It is my first time posting here

I am aware there are absolutely loads of forums with similar queries, but I don't seem to have the answers to by questions and want to be completely sure.

My wife and I are looking to buy a secondhand boat in Spain.

The boat is only two years old and seems to be in good condition. We are travelling to Spain to be present for a survey in a few weeks.

I just wanted to be sure of the formalities regarding buying a VAT not paid Boat in Spain.

I wife and I are both residents of the UK. We would be buying the boat solely for personal use. We are looking to Register the boat on Uk flag.

The current owners are non-EU citizens. Hence why I think the VAT hasn't been paid.

My questions are as follows.

1 Am I correct in thinking that as a non-EU citizen my wife and I can sail in the EU for 18 months, take the boat out of the EU, for example to Gibraltar, for one day. Which would effectively reset the VAT clock, and allow us to travel within the EU for a further 18 months without paying VAT. I am aware of the 90/180 days rule, which wouldn't affect us initially, as we wouldn't be looking to sail full-time.

2. If in a number of years we decide to cross the Atlantic over to the Caribbean, how does this affect the VAT on the boat?
Is it okay to take the boat out of the EU for 18 months as long as you return, or does this complicate the VAT.

3. if we were to pay the VAT, is the VAT due on the purchase price of the yacht or on the current/depreciated value of the yacht.

4. It possible to pay the VAT in an EU country that has a lower VAT rate. For example Malta. What would be the process to enable us to pay the VAT but at a lower rate?

Thank you in advance.

Steve and Natalie

[goboatingnow]

1 , yes , in theory after you buy the boat vat free , you need to export and then reimport to trigger the TIP ( temporary import permit ) which gives you the 18 month provision. But in general customs wont t bother as you are automatically entitled to the TIP

note Gibraltar will not reset the vat clock, morocco is about the only practical choice if based in Spain

If you leave the EU , you remain entitled to 18 months TIP on return to the EU as many times as you like

There is no point to paying the vat , as long as you have a way to reliably reset the VAT clock every 18 months.

If you bring the boat to the uk , you will be subject to uk vat immediately

There is no requirement to flag the boat in the uk , that’s nothing to do with vat , purely a personal choice

I’d act soon( ish) the UK agents of European boats are screaming blue murder at the fact they can’t sell a boat

Ensure all paperwork refers to your uk address

[boatman61]

Best place is one night in Tangiers..

[Natalie_Steve]

Hi @goboatingnow

Thankyou or replying to the thread.

Thats very helpful.

We plan to travel around the med, so being close Spain wont always be an option.

We would plan to head Greece and possibly moor the boat in Lekfas.

I Know you can trigger the TIP in Turkey. Whereelse in the med is a good option.

We are hoping to proceed quickly.

Thank you for the tip about Gibraltar. The current owners were planning to take it to Gibraltar prior to our purchase, so that the TIP had been triggered prior to our purchase. I will raise this with them.

[goboatingnow]

Originally Posted by Natalie_Steve

Hi @goboatingnow

Thankyou or replying to the thread.

Thats very helpful.

We plan to travel around the med, so being close Spain wont always be an option.

We would plan to head Greece and possibly moor the boat in Lekfas.

I Know you can trigger the TIP in Turkey. Whereelse in the med is a good option.

We are hoping to proceed quickly.

Thank you for the tip about Gibraltar. The current owners were planning to take it to Gibraltar prior to our purchase, so that the TIP had been triggered prior to our purchase. I will raise this with them.

No need to move the boat to gib , it’s not neccessary , in Greece , on the Ionian side you can use Albania to reset the vat clock or Montenegro. As for lefkas , I hope your not looking for a berth in the marina ( hah )

Note the TIP is effectively granted to you , not the boat.

[Kiwi.]

Originally Posted by goboatingnow

If you bring the boat to the uk , you will be subject to uk vat immediately

There is no requirement to flag the boat in the uk , that’s nothing to do with vat , purely a personal choice

I would give advice a little differently. If the vessel is not flagged UK and is owned by a company or trust domiciled in a non-European country then VAT will not be payable when the vessel is in the UK.

We just bought a large vessel (32 metres) in Spain non VAT paid and did three things:
1. Did the handover off shore in the Mediteranean (twelve miles steaming from Mallorca) and had the signing out there witnessed by the broker.
2. Bought the boat in a Cook Island Trust with a company as the trustee, the company being registered in New Zealand.
3. Flagged the boat with the Cook Island Flag.

We then applied for TPA (Tráfico de Perfeccionamiento Activo) to give us the right to refit the vessel in Spain without paying VAT on the parts or labour.

All a bit of a hassle but well worth the savings. We are doing the refit over this winter in Taragona. My daughter and her partner are overseeing the refit and I'm paying them Cook Island wages!

[goboatingnow]

There is no need for the OP to have the vessel outside the EU for this transaction, the situation is as I described it.

Secondly wrapping a private vessel in a corporation does not protect you. The U.K. has the same concept of beneficial ownership and as a U.K. tax resident the tax authorities could chose to determine such an ownership. So unless there is significant commercial charter activity it’s not a reliable protection.

Again , wrapping up an asset for primary purpose of evading vat is not a good idea.

[EdenRose]

Originally Posted by Natalie_Steve

Hi,


It is my first time posting here

I am aware there are absolutely loads of forums with similar queries, but I don't seem to have the answers to by questions and want to be completely sure.

My wife and I are looking to buy a secondhand boat in Spain.

The boat is only two years old and seems to be in good condition. We are travelling to Spain to be present for a survey in a few weeks.

I just wanted to be sure of the formalities regarding buying a VAT not paid Boat in Spain.

I wife and I are both residents of the UK. We would be buying the boat solely for personal use. We are looking to Register the boat on Uk flag.

The current owners are non-EU citizens. Hence why I think the VAT hasn't been paid.

My questions are as follows.

1 Am I correct in thinking that as a non-EU citizen my wife and I can sail in the EU for 18 months, take the boat out of the EU, for example to Gibraltar, for one day. Which would effectively reset the VAT clock, and allow us to travel within the EU for a further 18 months without paying VAT. I am aware of the 90/180 days rule, which wouldn't affect us initially, as we wouldn't be looking to sail full-time.

2. If in a number of years we decide to cross the Atlantic over to the Caribbean, how does this affect the VAT on the boat?
Is it okay to take the boat out of the EU for 18 months as long as you return, or does this complicate the VAT.

3. if we were to pay the VAT, is the VAT due on the purchase price of the yacht or on the current/depreciated value of the yacht.

4. It possible to pay the VAT in an EU country that has a lower VAT rate. For example Malta. What would be the process to enable us to pay the VAT but at a lower rate?

Thank you in advance.

Steve and Natalie

Did you find out how long you have to leave after purchase to avoid VAT? We are in same situation. Non-EU resident, buying VAT not paid boat in the EU and figuring out if the TI starts right away or do you need to leave the EU and return to start the TI.....What did you find out?
Thanks for your assitance.