VAT and Schengen Visa Clarification

Created by val. Last modified on 2008-11-13 16:24:43
Contributors:
Topic: Regional Agreements
Countries: Belgium, Channel Islands, Cyprus, Denmark, Finland, France, Germany, Gibraltar, Greece, Ireland, Italy, Netherlands, Norway, Spain, Sweden, United Kingdom

Email Received From: "Sue Antifaoff

Subject: VAT and Schengen Visa Clarification

Message:-

I have a few questions regarding Schengen Visas and Vat for NON EU Residents/nationals and NON EU Documented boats that I am hoping you can clarify. In our case we are both Canadian Passport Holders and the boat is Canadian Documented. Vat is not paid.

Schengen Visa

We are fortunate enough to not require a Visa however we are still bound by the 90 day rule. We understand the 90 day but where it gets a little fuzzy is the part about in a six month period. I quote from your web page: "The Schengen Visa is valid for 90 days. This means that a total of 90 days only in any 6 month period can be spent in the Schengen Agreement area, even if it is a multi-entry visa and time is spent in countries outside the Agreement. So if all 90 days have been used, then a new visa cannot be issued sooner than 6 months after last leaving the Schengen area." (Ed. I have since modified this statement)

Our confusion is the last sentence which in its nature as stated would indicate that 0ne 90 day visa is issued in a 9 month term as a new visa will not be issued until 6 months after departing the Schengen region. 90 days (in Schengen Area) + 6months (outside Schengen area). This appears to contradict the opening sentence "This means that a total of 90 days only in any 6 month period can be spent in the Schengen Agreement area,."

The reason I ask is that we are considering a Baltic Cruise and leaving from the Mediterranean. It is important to know if at the end of our first 90 days we would need to depart for a total of 3 months or 6 months.

Which brings us to the next question: Gibraltar is outside the EU for VAT purposes, is it also outside the Schengen Area, likewise the Channel Island? Would time spent in Gibraltar and the Channel Islands be deemed out of the EU and therefore we would restart the 18 month Vat Free clock upon entry into the UK?

Is it correct the UK is not part of the Schengen agreement our 90 day Visa clock would therefore begin on entry in the Netherlands or Germany, Kiel Canal?

One final note: in regards to Customs "Bond" of a boat when leaving the boat in that country for a period of time and returning to our homeland. Do the customs officials issue a certificate or other paper work that would provide proof of "Bond" and the stoppage of the 18month Vat free time limit? In other word how do I prove to France that the boat was bonded in Italy for example and therefore still not liable for VAT? France and Italy as an example however this could occur in any of the 27 EU member countries.

Thank you for your assistance in this matter and keep up the great work with Noonsite.

Sue and Wayne Antifaoff S/Y TALA

Noonsite’s reply

Thank you for your kind comments about Noonsite.

I have recently tried to clarify the rules regarding Schengen visas and VAT on non-EU boats, but they are complicated and it is not easy to explain clearly every situation.

The Schengen visa rules state that you cannot be issued with another visa sooner than 6 months after first entering a Schengen Area country. The situation for nationals who do NOT require a visa is similar in that you are limited to 90 days in any 180 day period. For all visitors the 6 month period starts from the first day of entry into the Schengen Area, after which ‘the clock’ starts again. This means that if you stay in the Schengen Area for 3 months, you will need to leave for 3 months to start the clock again. If you need a visa, I understand that you cannot get another one while your previous one is still valid, whether or not you have used all your 90 days. It is possible to get a visa cancelled.

The important thing to remember, is to ensure your passport is stamped whenever you enter or leave the Schengen Area so that the number of days you have been there during the previous 6 months can be counted properly.

Each country has different rules regarding the action taken if visitors over stay.

I hope this helps, but I have to emphasize that this is just my understanding of how it works by reading all the information I can find on the subject. I suspect that most border police are no wiser either!

The U.K., The Isle of Man, The Channel Islands, Gibraltar and Ireland are not part of the Schengen Area.

The VAT situation regarding the boat is:- If you enter the EU via Gibraltar, stay there and then leave the EU from there, the time spent in Gibraltar does not count. i.e. visit Tunisia before visiting another EU country.

If you visit Gibraltar either directly or as part of a cruise between two other EU countries, then the time spent in Gibraltar DOES count towards your total time in the EU.

I am unsure if this same rule applies to the Channel Islands. I will investigate.

There appears to be no minimum time needed to be outside the EU for the 18 month rule clock to be restarted, but it is advisable to have some evidence that time has been spent outside the EU.

With regard to time spent "in bond", I cannot be sure what paperwork would either be issued or acceptable proof as each country applies its own rules on that. Through various sources, I have heard that Norway can be very difficult about it and so Sweden might be a better option if you are planning to lay-up somewhere for the winter. A boat ‘in bond’ cannot be used or slept on. I am not sure about being worked on, though.

Best Wishes,

Val Assistant Noonsite Editor