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If the permanent importation of the boat coincides with transferring your residence from outside the EU, it may qualify for VAT relief. The Association of Brokers and Yacht Agents recommends that its members should obtain the relevant paperwork from the vendor before listing a yacht as being VAT paid. However, sadly, not all are so diligent, which can lead to delays in a transaction at a later date. On the other hand there are also brokers who are adept at tracing a long-forgotten trail of paperwork, even where companies boat dealers as well as builders are no longer in business.
Complications also arise because a VAT paid boat can lose this status. Equally, boats that are kept outside the EU for more than three years may be required to pay VAT again.
Unfortunately, there are also many cases in which the legal situation is not clear cut, especially as VAT is a tax on a transaction � the sale or importation of goods or services � not on the vessel itself. Customs officers in other EU countries you visit may require you to provide evidence of paid VAT, as will prospective buyers when you sell the boat.
That sounds fair enough, however in practice many boats, particularly older ones, may not have the complete documentation. Ideally the evidence of VAT having been paid on the vessel will be in the form of the original VAT invoice, from when the boat was either first sold within the EU or when it was imported from outside the EU. In the case of home built vessels, invoices for the materials used in the construction boat will suffice.
Although this is not conclusive proof VAT has been paid, it indicates that the tax status is the responsibility of UK authorities. Whether you're moving a blue-water sailboat, a power cruiser, or a superyacht, there are plenty of options Choosing the right tender can make all the difference - but when will a small wooden clinker dinghy will Email me yachts and information.
I accept YachtWorld's Terms of Use. Home Power Sail Lifestyle Reviews. VAT on yachts can add a hefty amount to the price tag.
Buying a Boat in Europe? Key Changes U. Service May Require. Consider these factors before buying a yacht in Europe or elsewhere for use in the United States. Choosing a Tender.
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