Can an EU resident sail a non EU residents boat in EU if its VAT NOT PAID status?

[cruiserman483]

I have an American resident friend who has his boat in EU under the 18 month rule. He is the owner, US resident (EU citizen), the boat is US flagged and VAT NOT PAID.

The owner has kindly offered the boat to me when he is not using, and offered if I want to move it to a next destination country for his collection and next trip by himself. Is it an issue that I am an EU resident, sailling a non-VAT PAID boat of someone else around? Any special documents / license I should be obtaining before I skipper such a boat?

Thanks.

[Franziska]

Just researched this for a friend and found this:


https://www.williamsandsmithells.com...nfo-in-europe/


My interpretation of the above is, that only non EU skippers can legally skipper non EU vessels in EU waters.

[ariette]

Its easy to confuse EU citizenship with EU residence. Anyone can sail on a non-EU boat and enjoy temporary importation but if the owner/skipper has an EU residence then VAT is payable.

[Montanan]

VAT is but one of type of the privilege taxes and is invoked upon residents of the union.

Non-residents have the opportunity to have temporary importation relief mechanisms for goods imported into the customs territory.

Neither the flag state of the vessel, nor citizenship of the owner / operator are determinate factors for imposition of EU VAT.

Bon voyages and enjoy your EU residency and the EU taxation privileges [and obligations].

As to the other side of the pond:
The USA does not have a VAT scheme. Sales and Use taxation is a somewhat similar privilege-based taxation mechanism associated with the 50 individual States of the north America union. 50 States, 50 separate rules and rates. Not all States impose a Sales / Use taxation. There is no Federal VAT or Sale / Use taxation within the USA.

The proper reference to the USA being: "The USA are . . ." and is not "the USA is . . ."

[Franziska]

So, would this be OK from a VAT perspective (in all honesty I do unfortunately doubt it)?


Say you have a skipper who is a dual citizen with a New Zealand and French passport.
He is living on his boat and is cruising worldwide, but uses his New Zealand registered boat (temporary import 18months) several years in the EU by short term existing after 18 months and uses his French passport to not fall under the Schengen shuffle.

[Montanan]

Originally Posted by Franziska

So, would this be OK from a VAT perspective (in all honesty I do unfortunately doubt it)?


Say you have a skipper who is a dual citizen with a New Zealand and French passport.
He is living on his boat and is cruising worldwide, but uses his New Zealand registered boat (temporary import 18months) several years in the EU by short term existing after 18 months and uses his French passport to not fall under the Schengen shuffle.

An enjoyable reading - EU Directive - Determination of taxablity:

https://taxation-customs.ec.europa.e...u-vat-rules_en

Clear as mud.

By way of example:

Article 147

1. Where the supply of goods referred to in point (b) of Article 146(1) relates to goods to be carried in the personal luggage of travellers, the exemption shall apply only if the following conditions are met:

(a)

the traveller is not established within the Community;

(b)

the goods are transported out of the Community before the end of the third month following that in which the supply takes place;

(c)

the total value of the supply, including VAT, is more than EUR 175 or the equivalent in national currency, fixed annually by applying the conversion rate obtaining on the first working day of October with effect from 1 January of the following year.

However, Member States may exempt a supply with a total value of less than the amount specified in point (c) of the first subparagraph.

2. For the purposes of paragraph 1, ‘a traveller who is not established within the Community’ shall mean a traveller whose permanent address or habitual residence is not located within the Community. In that case ‘permanent address or habitual residence’ means the place entered as such in a passport, identity card or other document recognised as an identity document by the Member State within whose territory the supply takes place.

Proof of exportation shall be furnished by means of the invoice or other document in lieu thereof, endorsed by the customs office of exit from the Community.

[Pete7]

Originally Posted by Franziska

So, would this be OK from a VAT perspective (in all honesty I do unfortunately doubt it)?

All it takes is for some poor customs officer to wonder why he is struggling to put food on the table for his family, whilst a stranger turns up in a gin palace. Then finds out its not registered in his name to start asking some serious questions and do a search that turns up two passports or other paperwork, like a French credit card bill in a wallet

Pete

[boatman61]

Originally Posted by Pete7

All it takes is for some poor customs officer to wonder why he is struggling to put food on the table for his family, whilst a stranger turns up in a gin palace. Then finds out its not registered in his name to start asking some serious questions and do a search that turns up two passports or other paperwork, like a French credit card bill in a wallet

Pete

If that were the case I would not be able to do deliveries of boats from the USA (or any non EU country) into the EU.
If the OP has a covering letter from the registered owner appointing him skipper for the transition of the vessel to another country (which is in the OP) then I see no problem.
It is technically a delivery..

[Franziska]

Originally Posted by Pete7

All it takes is for some poor customs officer to wonder why he is struggling to put food on the table for his family, whilst a stranger turns up in a gin palace. Then finds out its not registered in his name to start asking some serious questions and do a search that turns up two passports or other paperwork, like a French credit card bill in a wallet

Pete

In my example (different from the OP situation) the owner is the skipper. He just happens to have two passports NZ&F.

The boat is registered in his name in NZ.

[boatman61]

Originally Posted by Franziska

In my example (different from the OP situation) the owner is the skipper. He just happens to have two passports NZ&F.

The boat is registered in his name in NZ.

Depends on where his permanent address is.. NZ or FR..

[Franziska]

Say his permanent adress is in NZ.


Would he still be able to stay with his F passport indefinitely in the EU whilst repeatedly using chained (brief breaks outside EU) 18month stints for the boat?


Thus avoiding EU VAT?

[more]

Originally Posted by cruiserman483

I have an American resident friend who has his boat in EU under the 18 month rule. He is the owner, US resident (EU citizen), the boat is US flagged and VAT NOT PAID.

The owner has kindly offered the boat to me when he is not using, and offered if I want to move it to a next destination country for his collection and next trip by himself. Is it an issue that I am an EU resident, sailling a non-VAT PAID boat of someone else around? Any special documents / license I should be obtaining before I skipper such a boat?

Thanks.

one simply, don't come in croatia,italy,greec if you don't want lose boat and receive fine.
also if you repair buy eqipment outside eu and come on croatia border before come close 3 km croatian border sea,land,air burn all invoice and evidence fine start from 600€ and up and normaly vat. just read custom officer find invoice in car for tyre repar in bosna and charged guy wth 600 € fine + vat on invoice. also charged couple thousand € other guy for couple pack cigarete and 2 liter alchohol .

[Fintry]

[QUOTE=

The proper reference to the USA being: "The USA are . . ." and is not "the USA is . . ."[/QUOTE]


The New York Times Manual of Style and Usage calls for "the United States is". E Pluribus Unum It is one country, so it calls for singular verbs.



Jim

[stevead]

From EU Commission Regulation (EEC) No 2454/93.

Article 558
1. Total relief from import duties shall be granted for means of
road, rail, air, sea and inland waterway transport where they:
(a) are registered outside the customs territory of the Community in
the name of a person established outside that territory; however,
if the means of transport are not registered, the above condition
may be deemed to be met where they are owned by a person
established outside the customs territory of the Community;
(b) are used by a person established outside that territory, without
prejudice to Articles 559, 560 and 561; and

Article 560
1. Natural persons established in the customs territory of the
Community shall benefit from total relief from import duties
where they privately use means of transport occasionally, on the
instructions of the registration holder, this holder being in the
customs territory at the time of use.

Such persons shall also benefit from total relief, for the private use
of means of transport hired under a written contract, occasionally:

Article 561
2. Total relief from import duties shall be granted where means
of transport are used commercially or privately by a natural person
resident in the customs territory of the Union and employed by the
owner, hirer or lessee of the means of transport established outside
that territory.

Private use of the means of transport is allowed for journeys
between the place of work and the place of residence of the
employee or with the purpose of performing a professional task
of the employee as stipulated in the contract of employment.
At the request of the customs authorities, the person using the
means of transport shall present a copy of the contract of
employment.

Article 562.
Without prejudice to other special provisions, the periods for
discharge are the following:
(e) for privately used means of sea and inland waterway transport:
18 months.

From 558 in conjunction with 562 (e) I take it to mean that someone from outside the EU, with a vessel registered outside of the EU is not required to pay VAT as long as the vessel departs the EU within 18 months.

From 560, I infer that to mean that someone established within the EU (eg. the OP) may occasionally use the vessel within the EU as long as they have "instructions" from the registered user, and that the registered owner is in the EU. I don't know whether the "instructions" imply written or verbal instructions. Alternatively a person within the EU may also use the vessel if they have hired the vessel under a written contract, so perhaps your friend provides a written hire contract to you, with a nominal or zero value.

And from 561, I take that to mean someone established within the EU can use the vessel when they are hired by the registered owner to perform a task (such as a yacht delivery). The task must be stipulated in the contract between the registered owner and the person using the vessel (ie the delivery skipper).

The owner has kindly offered the boat to me when he is not using, and offered if I want to move it to a next destination country for his collection and next trip by himself.

I think the simple solution would be for you to get him to write a contract stipulating that you are delivering the boat from one country/port to another.

[stevead]

also if you repair buy eqipment outside eu and come on croatia border before come close 3 km croatian border sea,land,air burn all invoice and evidence fine start from 600€ and up and normaly vat. just read custom officer find invoice in car for tyre repar in bosna and charged guy wth 600 € fine + vat on invoice.

Unfortunately it is difficult to argue with a customs official if they are threatening you with imprisonment, a fine or confiscation of your yacht, but it seems to be in direct contravention of EU regulations.

Again from EU Commission Regulation (EEC) No 2454/93.

Section 2 (in which Article 558 granting relief from import duties is declared), there is also Subsection 7 which covers spare parts & repairs.

Spare parts, accessories and equipment; other goods
Article 577
Total relief from import duties shall be granted where spare parts, accessories and equipment are used for repair and maintenance, including overhaul, adjustments and preservation of goods entered for the arrangements.

I read that to mean that if a vessel is admitted into the EU under Article 558, it may also bring into the EU spare parts, accessories and equipment free from import duties.

Unfortunately my diplomacy skills (or lack thereof) would prevent me from arguing the nuances of EU regulations to a Croatian customs official.