Reflagging new-to-us boat in Med - which flag?

Laser_310

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This thread is pretty informative.

Other than internet forums, is there any place that this information is presented? Say, in a more systematic fashion?

I am close (I hope) to buying a yacht in Europe - the Boat will almost certainly be EU VAT paid, and registered in an EU country.

I hold British and US passports.., and will have to decide on some of these issues.

In addition, one of my main concerns is keeping the yacht's EU VAT paid status, for when I decide to sell the yacht. Can anyone point me to a resource which addresses this?
 

Fr J Hackett

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Providing the yacht does not stay out of EU waters for more than 3 years ( and even this can be catered for) it will retain its EU vat paid status.
 

Laser_310

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Providing the yacht does not stay out of EU waters for more than 3 years ( and even this can be catered for) it will retain its EU vat paid status.
sorry for the thread drift...

I am assuming that's not 3 years over the life of the yacht..., but is three consecutive years.

So, if the boat were in the US and Caribbean for a while.., would a few days in St. Barts - with documentation - reset the clock?
 

Fr J Hackett

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Is St Barts a full member of the EU? is the question if the answer is yes then it probably would and yes it is 3 years of continued absence not 3 years in the life of the yacht.
As its an overseas territory of the EU I don't know exactly what the taxation and administration of EU regulation and laws are I don't even know if it uses the Euro.
 
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westernman

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Laser_310

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Is St Barts a full member of the EU? is the question if the answer is yes then it probably would and yes it is 3 years of continued absence not 3 years in the life of the yacht.
As its an overseas territory of the EU I don't know exactly what the taxation and administration of EU regulation and laws are I don't even know if it uses the Euro.
I just googled it, and it appears that St Barts changed its affiliation a few years ago - it is no longer a department of France, but rather is an overseas territory of France, and is no longer in the EU.

They do use the Euro there.

Martinique and Guadeloupe are apparently still a department of France, and so are still part of the EU - but not with quite the same status as continental EU countries - they are an "Outermost Region of the EU". Apparently the Canaries are also an outermost region.., so if the canaries would count for retaining VAT paid status, then Martinique should as well..., maybe?
 

westernman

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I just googled it, and it appears that St Barts changed its affiliation a few years ago - it is no longer a department of France, but rather is an overseas territory of France, and is no longer in the EU.

They do use the Euro there.

Martinique and Guadeloupe are apparently still a department of France, and so are still part of the EU - but not with quite the same status as continental EU countries - they are an "Outermost Region of the EU". Apparently the Canaries are also an outermost region.., so if the canaries would count for retaining VAT paid status, then Martinique should as well..., maybe?
Martinque and the other DOMs are not part of the EU VAT system but are part of the EU territory.
Same as the Canaries.

Which I think means they don't count for retaining VAT paid status.
 

Laser_310

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Martinque and the other DOMs are not part of the EU VAT system but are part of the EU territory.
Same as the Canaries.

Which I think means they don't count for retaining VAT paid status.
thanks - it's more complicated than i thought...

So, even the canaries don't count? I'm surprised by that.
 

Fr J Hackett

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I think - but it is complex. They are in the EU, but not the VAT zone.
That's the problem and I think it effectively means the boat has to visit a full member state which seems to be the European members with territorial waters.
 

Tranona

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thanks - it's more complicated than i thought...

So, even the canaries don't count? I'm surprised by that.
Your proposed situation is little different from that of many UK based ocean voyagers who spent more than 3 years outside the UK and found that HMRC frequently used the "exceptional" part of the returned goods rules and did not impose VAT on return to the UK. i expect the CA will be able to tell you more about this.

Your issue will, though be whether the EU state where you re-enter will be as equally relaxed. Remember though that many EU citizens/boats (particularly French) have been travelling the world for years and in theory face the same problem, but maybe not really an issue. BTW remember the Azores and Madeira are part of Portugal and therefore the EU.
 

Fr J Hackett

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Your proposed situation is little different from that of many UK based ocean voyagers who spent more than 3 years outside the UK and found that HMRC frequently used the "exceptional" part of the returned goods rules and did not impose VAT on return to the UK. i expect the CA will be able to tell you more about this.

Your issue will, though be whether the EU state where you re-enter will be as equally relaxed. Remember though that many EU citizens/boats (particularly French) have been travelling the world for years and in theory face the same problem, but maybe not really an issue. BTW remember the Azores and Madeira are part of Portugal and therefore the EU.
Yes I seem to remember the Azores was an advantageous place to pat VAT on an import into the EU.
 

westernman

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Yes I seem to remember the Azores was an advantageous place to pat VAT on an import into the EU.
I think buying a boat in Martinique could be fun.

It could be French registered (Martinique is a department of France just like the Alpes Martimes or the Var), and would then be French VAT paid.
But not EU VAT paid as Martinique is not in the EU VAT zone.

Work that one out.
 

Fr J Hackett

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I think buying a boat in Martinique could be fun.

It could be French registered (Martinique is a department of France just like the Alpes Martimes or the Var), and would then be French VAT paid.
But not EU VAT paid as Martinique is not in the EU VAT zone.

Work that one out.
I have idly pondered over buying another boat over the last year and thought about things like vat and registration, the bug bear would be where I would register and it definitely wouldn't be France as I am not going to sit in a classroom for 3 days to take a course and sit an examination when I have perfectly good UK issued ones and I wouldn't want to pay the annual tax either. So it would have to be pt 1 UK or perhaps Dutch flagged if I take the plunge but my wife is not overly keen on spending 4 to 6 months away particularly where I want to sail, so it probably won't happen.
 
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