Question 1

What determines the vessel's VAT status?

Accepted Answer

Where the VAT was demonstrably paid by an individual in the EU?

Question 2

I want to buy a vessel but I don't want to pay the VAT, is there a way to avoid the VAT on my vessel?

Accepted Answer

If you, as an EU resident, want to evade VAT then you are punishable. This with all its consequences. For example: High fine and seizure of the vessel.

Question 3

I am going to buy a vessel, do I have to pay VAT if I buy it with BVI registration and keep the BVI registration, I am EU citizen

Accepted Answer

As an EU citizen, you buy a good in the EU. The seller must charge and remit VAT to you according to the rate of the country of delivery. The flag does not determine VAT….

Question 4

Can a UK citizen use a NOT paid VAT vessel in UK waters with a Marshall/Delaware/BVI flag without paying VAT.

Accepted Answer

Because of the Brexit, the UK is considered a third country. The flag is not the determining factor here, but the residence of the owner.
(a) The owner must have personal ties outside the EU;
(b) The vessel must be registered outside the EU…;
(c) Use in the EU is for private purposes.

Question 5

May an EU citizen use a NON-paid VAT vessel in EU waters with a Marshall/Delaware/BVI flag without paying VAT tax.

Accepted Answer

No, this is even prohibited. If you are an EU resident, you must comply with the applicable VAT rules.

Question 6

What documents should I ask the previous owner to prove the VAT PAYED status of the vessel?

Accepted Answer

Proof that VAT has been paid is the invoice that the supplier delivers to the buyer. This invoice must meet the requirements as stated in Council Directive 2010/45/EU of 13 July 2010 amending Directive 2006/112/EC on the common system of value added tax as regards invoicing rules.

Question 7

If I set up a company outside the EU and register the vessel with a non-EU flag, can I avoid paying VAT as a tax resident of the EU?

Accepted Answer

As a result, you are guilty of fraud. This is heavily charged to you because you deliberately want to avoid VAT. As an EU tax resident, you must comply with EU tax rules.

Question 8

What do I need to do to get the VAT exemption if I enter EU waters with a NON-VAT paid vessel?

Accepted Answer

As an EU resident, you are not exempt from VAT and must import the vessel. If you, as a non-EU resident, meet the conditions of Temporary Importation then you can apply for that scheme. You must report to Customs and after verification, you will be issued an 18-month permit to stay in the EU.

Question 9

I have heard that you can be in EU waters for 18 months without paying VAT, what do I need to do after 18 months to extend for another 18 months

Accepted Answer

On anything you buy here or for the maintenance of the vessel, you always have to pay VAT in the EU. If you have a Temporary Import Permit, you can sail freely in the EU for 18 months. After those 18 months, you must temporarily leave the EU and report back to Customs upon arrival. You can then get another permit. Provided you still meet the conditions. De totale tijd is beperkt tot 10 jaar. See https://ec.europa.eu/taxation_customs/system/files/2018-04/rules_for_private_boats-faq_en.pdf

Question 10

I am going to buy a used vessel, where can I check the VAT status of my vessel or the vessel I want to buy?

Accepted Answer

Again, the VAT receipt is the invoice issued by the seller. If the seller is a merchant, he must provide you with an invoice with the VAT. Or a so-called margin invoice.

Question 11

I am going to buy a vessel made before 1978, what is the VAT status of vessels made before 1978, are they exempt from VAT?

Accepted Answer

There is no exemption for these vessels. Vessels before, in use and built in the EU on Jan. 1, 1985, are considered to have been paid within the European Community. This applies to the countries that formed the EU in 1993. For countries admitted later, the 8-year deadline for accession applies. If major adjustments have been made, this does not apply. Then VAT status will have to be demonstrated.

Question 12

What documents can be considered proof that VAT has been paid and what documents should I have on board in case I am stopped by EU customs or EU judicial authorities.

Accepted Answer

As mentioned earlier: the invoice from the supplier/seller to the buyer (individual). The so-called B2C (Business to Consumer) transaction. Proof from the competent authority that can certify that the VAT was paid and not recovered. In the Netherlands, this is the Landelijk Team Jachten in Vlissingen.

Question 13

Is it considered an export if I register my vessel with a non-EU registration within the European Union?

Accepted Answer

Simply put: NO. Registration is not related to tax status. The definition of export is: “Bringing Union goods out of the customs territory of the Union. Union goods leaving the customs territory of the Union must be placed under the export procedure.” You must therefore file an export declaration.

Question 14

I am a tax resident of an EU country and I am going to buy a vessel that has NO VAT paid in Croatia, but I am not going to use the vessel in EU waters. Do I have to pay VAT?

Accepted Answer

It depends. If you export the vessel, an export declaration must be made and signed off by Customs as proof that the vessel has left the EU. This allows the supplier/seller to prove that the vessel was delivered correctly without VAT and outside the EU. Simply put: If you enter an EU member state, then you are bringing a good into the EU and so there is. You must pay the VAT on the spot.

Question 15

I buy a brand new vessel with VAT paid, I want to export the vessel from the EU, do I get the VAT back?

Accepted Answer

First, why are you buying a vessel with VAT? You are going to export and use the vessel outside the EU! So there is export so 0%. No, you will not get the VAT back. The vessel was purchased in an EU country, right? Do you also not pay VAT at a restaurant or when you buy a book?

Question 16

In the case of a used vessel with paid VAT status, and if I export the vessel, is there VAT relief.

Accepted Answer

Again, you will not get a refund of the VAT paid. You buy the good in the EU including VAT.

Question 17

I am buying a VAT-paid vessel from outside the EU and I want to register it in the EU because I am an EU resident. Do I have to pay VAT again? If so, how can I do that?

Accepted Answer

Again, you are importing a good into the EU. VAT and any customs duties must therefore be paid on those imports. No account is taken of any taxes paid outside the EU.

Question 18

I have paid VAT in Spain on my vessel, I want to sail outside Spain, but in EU waters other EU authorities can check if VAT has been paid in case I am stopped.

Accepted Answer

YES, If you are audited, you must prove that the VAT was paid in the EU. The invoice you received is the proof or statement of the competent authorities. Upon entering the EU, Customs is authorized to check whether you are entitled to the Returned Goods Exemption as an EU resident

Question 19

Are EEC countries such as Switzerland, Iceland, Norway, Liechtenstein considered EU countries for VAT purposes?

Accepted Answer

These countries do not belong to the EU and, like the current UK, these are referred to as “third countries.

FAQ