EU boat reregistered outside EU can it stay in the EU tax free?

[valhalla360]

Originally Posted by CatNewBee

for the EU point of view, it is sold to Canada, it is exported to a foreigner / non EU country.

Correction: From the EU point of view, it is sold to a Canadian (Canada, the country, doesn't own it) and it is not exported as the boat is staying in the EU.

To export or import something means the goods actually travel in or out of a jurisdiction. A change in ownership by itself does not constitute the import or export of an item.

[Freshman]

Till the moment boat leaves EU (with export declaration or not) it can be flagged or not and VAT will not be required second time. Flag is not obligatory in some EU countries so if you have proof that VAT has been paid you no need to worry till moment you leave the EU. But if you sail even to Turkey or Albania and than return you can face problem.

[boatman61]

Originally Posted by Freshman

Till the moment boat leaves EU (with export declaration or not) it can be flagged or not and VAT will not be required second time. Flag is not obligatory in some EU countries so if you have proof that VAT has been paid you no need to worry till moment you leave the EU. But if you sail even to Turkey or Albania and than return you can face problem.

Only if the boat has been out of EU waters for 3yrs.. also Martinique counts as EU territory.. but maybe only if your French..

[Freshman]

Not only.
If boats comes back with canadian flag to EU (and declare as last port not EU one) than after 18 months customs will ask for VAT.
Fact is, that this area is still far from perfect regulations - you can move easily from one country to another without declaring last port out of EU.

[valhalla360]

Originally Posted by Freshman

If boats comes back with canadian flag to EU (and declare as last port not EU one) than after 18 months customs will ask for VAT.

Then you whip out the VAT paid certificate and they say you are good to go with no new VAT due.

[Freshman]

More or less like this. In fact you need to proof that it taxed with VAT. But if you make temporary export declaration before you you leave than there is no need to proof that VAT was paid. Just show up MRN no and boat is again EU as before export.

[valhalla360]

Originally Posted by Freshman

More or less like this. In fact you need to proof that it taxed with VAT. But if you make temporary export declaration before you you leave than there is no need to proof that VAT was paid. Just show up MRN no and boat is again EU as before export.

VAT and import/export are separate things.

Regardless of nationality, they can check your VAT status at any time. If you have the document showing VAT paid, you are good, so doing a "temporary export declaration" doesn't do anything.

You can come and go (with a few rare exceptions) and it doesn't impact the VAT status.

[Freshman]

Temporay export declaration is return ticket to EU without VAT . Try to proof customs in Italy that 10 years boat was taxed in UK.

[Freshman]

Of course for non EU citizen with canadian flagged boat coming from TURKEY

[nwdiver]

Originally Posted by valhalla360

Correction: From the EU point of view, it is sold to a Canadian (Canada, the country, doesn't own it) and it is not exported as the boat is staying in the EU.

To export or import something means the goods actually travel in or out of a jurisdiction. A change in ownership by itself does not constitute the import or export of an item.

With the new free trade/taxation treaty, I believe I shouldn't have a problem, and for me it's easier than owning in a corporation.......

[nwdiver]

If I were to leave the EU with the boat I would take a long way to Canada then see if double taxation works under the treaty on the other end, but since I have a boat in Canada that's not likely to happen.......

[CatNewBee]

it does not matter, if you leave to a non EU harbor and come back. If yoy stay in EU waters longer than 18 months.

Your vessel is flagged Canadian and you have to leave prior 18 months. If you overstay this period you will be fined. If you are considered a resident you will be ok, but subject to VAT, what was paid, if not, probably you will have to pay some ransom to get your boat back. Than you will get a 3 day notice to leave and probably a refusal to reenter EU waters for some years or visa denial.

[Prairie Chicken]

Originally Posted by nwdiver

Thanks all.......I can reregister Canadian and as long as it stays out of Canada no tax is paid, and I can keep it in EU without having to jump the border (the boat I mean, I only have 90 days in 180) this may be workable........

Yes. That's what we have done & continue to do. We bought an EU, VAT paid boat in the EU. Now she flies the maple leaf, stays in the EU, and we fly back & forth complying with our Schengen restrictions. Boat stays out of Canada, no GST, and no VAT concerns. Just make sure you have evidence of the VAT having been originally paid.

[nwdiver]

Originally Posted by Prairie Chicken

Yes. That's what we have done & continue to do. We bought an EU, VAT paid boat in the EU. Now she flies the maple leaf, stays in the EU, and we fly back & forth complying with our Schengen restrictions. Boat stays out of Canada, no GST, and no VAT concerns. Just make sure you have evidence of the VAT having been originally paid.

Thank you someone who has done this........was it before the Freetrade agreement earlier this year?

[nwdiver]

Originally Posted by CatNewBee

it does not matter, if you leave to a non EU harbor and come back. If yoy stay in EU waters longer than 18 months.

Your vessel is flagged Canadian and you have to leave prior 18 months. If you overstay this period you will be fined. If you are considered a resident you will be ok, but subject to VAT, what was paid, if not, probably you will have to pay some ransom to get your boat back. Than you will get a 3 day notice to leave and probably a refusal to reenter EU waters for some years or visa denial.

Cat......chill, one I don't think you know what you are talking about and, two you are talking about things I have said will not happen.....like leavening the EU.......answer the OP not the cross talk