5% VAT on your new boat?

[Nick_H]

It seems the Croatians have decided to make a quick buck on accession to the EU, by allowing any boat that is imported and registered in Croatia by 31 May to make a one-off 5% VAT payment. On accession, the boat will then be considered EU VAT paid, and can, in theory, circulate freely within the EU.

It remains to be seen whether other countries are as enthusiastic about this as Croatia. I somehow doubt it, though I guess they may turn a blind eye if the numbers are relatively small, and view it as a golden hello for a new EU member? It's also maybe a bit difficult for Italy and France to kick up a stink, when they've both run their own low VAT schemes to try and pinch VAT revenue from other countries.

 

[Tranona]

Not as simple as it sounds if you read the long thread on Scuttlebutt. Scheme is aimed at non-VAT paid boats already kept in Croatia. Longwinded process to import and register boat with significant administration charges. Might be worth looking at if you had a new boat ready to go and could get it physically there in time.

 

[Nick_H]

The info I received stated that the boat doesn't need to be already kept in Croatia, just needs to be there by 31 May, though it was from an agent, so they could be wrong I guess. Either way, I'm sure you're right about the hassle factor to import and register.

 

[Deleted User YDKXO]

Yes, I put a thread up about this a while ago
http://www.ybw.com/forums/showthread.php?340503-5-VAT-window-in-Croatia&highlight=croatia
I intend to take advantage of this scheme myself and I have already engaged a local company along with another forumite to manage the process for us http://www.maritimus.hr. There are plenty of other companies offering to manage the process for owners including Ward & Mackenzie in the UK http://www.ward-mckenzie.co.uk/croatia-5-vat-3/
It does seem to be a complex process which involves registering your boat under the Croatian flag and paying all sorts of notary, registration, harbour and radio licence costs. The total cost for my boat, including the management fee, in total will be about €6000 + the 5% VAT. Well worth doing though IMHO

 

[Tranona]

The info I received stated that the boat doesn't need to be already kept in Croatia, just needs to be there by 31 May, though it was from an agent, so they could be wrong I guess. Either way, I'm sure you're right about the hassle factor to import and register.

Yes, although it is aimed at boats like Mike's seems to be no reason why a new boat should not take advantage, just the logistics of getting it there in time. Might also suit somebody who had an existing non VAT paid boat that could move there.

 

[jimmy_the_builder]

Would it work if you simply bought a secondhand boat that is already in Croatia, and kept it there through the 31 May deadline, before moving it elsewhere in the EU?

Cheers
Jimmy

 

[jfm]

Would it work if you simply bought a secondhand boat that is already in Croatia, and kept it there through the 31 May deadline, before moving it elsewhere in the EU?

Cheers
Jimmy

Yes but the boat must be in croatia by 30 June and Croatia flagged by 31 May. It's the flagging that is tricky. Every poxy document you can imagine has to be trnanslated and certified and notarised etc
It feels much better just to malta register and pay 6 and a bit %, tbh