Advice On Exporting Tax Exempt Yacht

Created by doina. Last modified on 2006-05-19 11:27:33
Topic: VAT

Hello, I read your article on the 18 month temporary importation for non-EU registered vessels owned and operated by non-EU residents. I understand that for most people, the clock would start upon sailing into an EU country.

I hoped you could give me some guidance on a slightly different situation. I am American and plan to buy a racing sailboat built in Spain. The factory says they can invoice me as tax exempt for export. However, I plan to stay in Europe with the boat for approximately 18 months participating in a series of regattas. I would register the boat in the U.S. right away, but not import it until after the 18 months. Can my bill of sale act as the start clock for the 18 months, or does the boat have to leave the EU and then be imported (sailed) back in?

Thanks for any advice you can offer.

If your boat is registered in the US, the clock start running from the moment you buy the boat. You would possibly get away with using the boat for 18 months unregistered, while racing in Europe but if you are found out, you'll have to pay VAT. I really see no reason why you should not register the boat under US flag straight away, so you don't have to worry. But after 18 months the boat needs to leave the EU.