EU VAT paid status transferable? and 18mth TI

[Yes maybe]

"Simple" questions:
Is EU VAT paid status on a boat transferable to a new owner of said boat, who is not a resident of the EU?

If non EU resident purchases a VAT paid (as above VAT may or may not be transferable?) boat in EU waters. Do they have to check out, then back into EU waters to start the 18month TI clock?
Or can the stay in EU waters for 18mths after they take possession of boat, with out the need for check out/back in?

[boatman61]

If you buy an EU VAT paid boat in the EU it can stay in EU waters indefinitely no matter the registration.. just make sure you get evidence of original VAT payment with the boat as proof.
You however, as a non EU citizen will be restricted to the 90 days in, 90 days out rule.

[Fatboypaul]

And if the VAT paid boat has been out of the EU for more than three years, then VAT is once again payable should you want return to the EU.
Please do correct me if I am wrong.

[goboatingnow]

Originally Posted by Yes maybe

"Simple" questions:

Is EU VAT paid status on a boat transferable to a new owner of said boat, who is not a resident of the EU?



If non EU resident purchases a VAT paid (as above VAT may or may not be transferable?) boat in EU waters. Do they have to check out, then back into EU waters to start the 18month TI clock?

Or can the stay in EU waters for 18mths after they take possession of boat, with out the need for check out/back in?

Vat is not a function of ownership per se. Vat is paid or accounted for on the sale , purchase , import or export of goods and services. Hence if these things occur repeatedly vat “ can “ be due again

If a non EU tax resident buys a vat paid boat the “ vat status “ will not change until the boat is exported. That is the minute you take it out of EU waters. At that point if you return , you can available of the temporary import provisions for 18 months after which you have to “reset the vat clock “ by leaving the EU for a day.

In practice unless you actually go to a place outside the eu , customs can’t determine if you left eu waters ( and arnt bothered )

Note RGR , returned goods relief is only available to EU tax residents , hence they can take a boat out of the EU for three years and return without vat being accessed. Also by prior agreement the three year period can be increased

This provision doesn’t apply where you are not tax resident. If you remove the boat it’s deemed exported.

Technically to avail of TIP , you have to remove the boat from the EU and renter. In reality nobody cares that much.

[Joh.Ghurt]

Originally Posted by Fatboypaul

And if the VAT paid boat has been out of the EU for more than three years, then VAT is once again payable should you want return to the EU.
Please do correct me if I am wrong.

You aren't wrong, but this rule is usually only enforced in extreme cases. There are ways to extend that 3 year period with your local tax authority and there are other complicated cases where this doesn't apply. For this reason it isn't easy work for customs to figure out whether they can charge you again and thus they don't bother. This is a general VAT rule made for other goods, yachts aren't really of relevance for it.

[Yes maybe]

Originally Posted by goboatingnow

Vat is not a function of ownership per se. Vat is paid or accounted for on the sale , purchase , import or export of goods and services. Hence if these things occur repeatedly vat “ can “ be due again

If a non EU tax resident buys a vat paid boat the “ vat status “ will not change until the boat is exported. That is the minute you take it out of EU waters. At that point if you return , you can available of the temporary import provisions for 18 months after which you have to “reset the vat clock “ by leaving the EU for a day.

In practice unless you actually go to a place outside the eu , customs can’t determine if you left eu waters ( and arnt bothered )

Note RGR , returned goods relief is only available to EU tax residents , hence they can take a boat out of the EU for three years and return without vat being accessed. Also by prior agreement the three year period can be increased

This provision doesn’t apply where you are not tax resident. If you remove the boat it’s deemed exported.

Technically to avail of TIP , you have to remove the boat from the EU and renter. In reality nobody cares that much.

Thanks, really good info.

I understand; once I purchase as non EU resident, VAT paid status will be lost when I leave EU waters. Even If I have a VAT receipt from previous owner, VAT paid status cant be passed on, if I was to later sell to another EU resident?
If this is the case, then VAT paid status has no real value to a non EU resident buyer?
The technicality of having to remove boat once purchased and renter to start 18mth TIP. Sounds like a good idea to go through this formality, just to be clear from any VAT issue.

[boatman61]

You can resell to an EU citizen and the boat will retain VAT status as long as the boat has never left EU waters.

[Yes maybe]

Originally Posted by boatman61

You can resell to an EU citizen and the boat will retain VAT status as long as the boat has never left EU waters.

Thanks,
Unfortunately it will have left EU waters and returned. So the VAT goes poof

[Joh.Ghurt]

Originally Posted by boatman61

You can resell to an EU citizen and the boat will retain VAT status as long as the boat has never left EU waters.

Actually, to be precise: as long as the boat never left the EU for long enough to lose VAT-paid status, which is 3 continuous years. If you just spend a season in the Caribbean, it doesn't lose the VAT status. It's only about whether the boat - not the owner - was an asset in some way of the EU economy.

This doesn't apply to boats owned by brits after Brexit. That situation is more complicated, but I don't think this is relevant in the original poster's case.

[boatman61]

Originally Posted by Joh.Ghurt

Actually, to be precise: as long as the boat never left the EU for long enough to lose VAT-paid status, which is 3 continuous years. If you just spend a season in the Caribbean, it doesn't lose the VAT status.

This doesn't apply to boats owned by brits after Brexit. That situation is more complicated, but I don't think it applies here.

Yeah.. There's no vendetta against Aussies and Yanks.

[Joh.Ghurt]

Originally Posted by boatman61

Yeah.. There's no vendetta against Aussies and Yanks.

It isn't a vendetta against the Brits, that would be pointless. The British 're so great at shooting themselves in the feet, they don't need assistance to make themselves miserable. The problem is more that with Brexit, they needed to figure out a way to split something that was never designed to be split.

In the past VAT paid was VAT paid, doesn't matter in which country. With Brexit it was necessary to divide between EU-VAT paid and GB-VAT paid. And as Yachties are an irrelevant minority without leverage, any random solution was adopted.

[boatman61]

Originally Posted by Joh.Ghurt

It isn't a vendetta against the Brits, that would be pointless. The British 're so great at shooting themselves in the feet, they don't need assistance to make themselves miserable. The problem is more that with Brexit, they needed to figure out a way to split something that was never designed to be split.

In the past VAT paid was VAT paid, doesn't matter in which country. With Brexit it was necessary to divide between EU-VAT paid and GB-VAT paid. And as Yachties are an irrelevant minority without leverage, any random solution was adopted.

That's as maybe, however it was agreed that any Brit boats in the EU on the night of the changeover would retain EU VAT status.. seems from some reports coming out of Greece for example this is proving difficult for existing Brit boats out there.. seem to remember a thread on here about this.
Also.. it was a tongue in cheek comment about the UK/EU relationship at the moment..

[Joh.Ghurt]

Originally Posted by boatman61

[...] seems from some reports coming out of Greece for example this is proving difficult for existing Brit boats out there.. seem to remember a thread on here about this.[...]

Greece and Croatia were always big into pushing the envelope on what's permissible and what one can get away with even if it isn't. It was no accident, that the debt-crisis in 2007 was primary about Greece and not some other country. No reason to change for them with Brexit.

[boatman61]

Damn.. and here was I thinking it was down to shade dealings by banks around the world and a sub prime scandal in the US in '07 that began the financial collapse..
Then the Troika moved in and fitted the thumb screws on Greece

https://www.thebalance.com/2007-fina...erview-3306138

[Joh.Ghurt]

Originally Posted by boatman61

Damn.. and here was I thinking it was down to shade dealings by banks around the world and a sub prime scandal in the US in '07 that began the financial collapse..

I've been working at this time for some German banks. The shady to corrupt banks were just very willing to believe the crap Greece was feeding them. Everyone in the business knew how strong this was smelling, but it was easy to sell to the public and thus generating provisions. Same as with junk-bonds, the subprime mortgages, the internet-bubble and perhaps even crypto (lets see). Banks just don't care what people do with their money as long as it makes enough profit for them. They made it an art-form to fleece clueless but greedy people.

And Greece was lying about their economy since the beginning of the Euro process. Germany and France just looked away, because the economy of Greece is too small to bother and it helped sell the Euro to the German populace. The argument was: With the Euro, you don't have to deal with those pesky drachmae, lira and pesetas any more when on holiday. Just use the Euro instead of the Deutsche Mark.