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Kemp · 21-11-2015, 10:39

Hello all,

Please help me with the following question. I consider buying a boat, which is currently in Maroc. It is owned by Cayman Islands IBC and registered there, VAT is not payed. We would like to sail to the Canary Islands and stay there for some time. We are EU residents. The Canary Islands are outside the EC fiscal (VAT) area: “This Directive shall not apply to the following territories forming part of the customs territory of the Community: (a) Mount Athos; (b) the Canary Islands; (c) the French overseas departments; (d) the Åland Islands; (e) the Channel Islands.”

So could it be any questions/problems in the Canary Islands regarding boat's VAT status?

Thanks.

Kemp · 23-11-2015, 07:25

Anyone?

**boatman61** · 23-11-2015, 07:31

Where will it be registered...? to date I have never been asked to provide proof of VAT Paid anywhere I've travelled on any boat.

Kemp · 23-11-2015, 12:56

It is currently registered under Cayman Islands flag and owned by Cayman Islands company. There are no obstacles to keep it this way.

**boatman61** · 23-11-2015, 13:05

Well the flag will draw them in like flies to ****...
Funny that they have no VAT.. seeing as thats where many claim back their VAT paid in the EU before the Trans-at.. it is Spanish Territory after all.

bobnlesley · 23-11-2015, 13:19

Shouldn't be any problems.

As noted in an earlier post, even within the EU you're highly unlikely to have anyone require you to prove your boat's VAT/IVA status; the only two boats we know of who've been so required (definite/known cases, not third hand urban myths) had both done something to severely annoy the authorities in the first place.

Notwithstanding, as also noted earlier: The Canary Islands are part of Spain, however, unlike Spain's Mediterranean Islands, the Canary Islands are definitely NOT part of the EU.

Kemp · 23-11-2015, 13:25

Quote:

Originally Posted by boatman61

Well the flag will draw them in like flies to ****...
Funny that they have no VAT.. seeing as thats where many claim back their VAT paid in the EU before the Trans-at.. it is Spanish Territory after all.

What do you mean by 'them'? Could you please be more specific. The Canary Islands are excluded from VAT area by Article 6 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax.

Kemp · 23-11-2015, 13:36

Quote:

Originally Posted by bobnlesley

Notwithstanding, as also noted earlier: The Canary Islands are part of Spain, however, unlike Spain's Mediterranean Islands, the Canary Islands are definitely NOT part of the EU.

The Canary Islands is a part of Spanish territory and thus part of EU, but excluded from EU fiscal (VAT) area: https://en.wikipedia.org/wiki/Specia...European_Union

**boatman61** · 24-11-2015, 02:36

Quote:

Originally Posted by Kemp

The Canary Islands is a part of Spanish territory and thus part of EU, but excluded from EU fiscal (VAT) area: https://en.wikipedia.org/wiki/Specia...European_Union

It may well be excluded but that does not mean they have no form of taxation of their own which you could be hit with.. 10pc is a popular number.