Questions on Importing a Non-VAT Paid Boat into the EU

Created by val. Last modified on 2009-11-08 12:49:31
Contributors:
Topic: VAT

At Noonsite.com we receive many questions regarding the regulations applied to boats in the EU. I am not an expert in this field, but in an attempt to help our readers, I have read all I can find on the subject, so the opinions below are just my understanding of how it works, added to the experience of Noonsite readers who contact us.

Received from Carl in October 2009

I am an EU citizen considering buying a used yacht on the Canary islands, for which no VAT has been paid. I need advice on the present VAT situation.

Q1 can I sail to any country and stay there for 6 months, before deciding where to pay VAT or do I pay in the first country visited?

Q2 Which country would be a good choice regarding low VAT, reasonable administration? Madeira? Spain?

Q3 On which value is VAT calculated? Is it the contracted value or has an valuation be performed?

my reply

As I understand it, as an EU citizen (I guess you are Swedish?) with, I assume, a non EU registered boat, you are allowed 1 month in the EU before VAT is due on the boat.

If you are not an EU citizen, the boat (but not you!) can remain in the EU for 18 months before paying VAT.

Most people pay it in the EU country with the lowest rate that they can sensibly sail to. See www.noonsite.com/General/EuropeanUnion/VAT

For you, this is probably Spain (16%). As to what they use for the valuation, I believe this can be negotiable, but in your case would probably be based on your Bill of Sale as it would be recent.

I cannot comment on efficiency of administration in Spain (or anywhere else) as I have no information.

Additional Notes

(1) Madeira currently has a special VAT rate of 14%

(2) The above correspondence does not address the issue of the EU’s Recreational Craft Directive. See /General/EuropeanUnion/ for more information. Proving a pre 1998 boat conforms to these RCD regulations if it was built outside the EU, can be very, very expensive.

(3) VAT is due AGAIN on an EU vat-paid boat if the boat is sold outside the EU.