A new twist on the old VAT question

[ian38_39]

Hi All,

have put down a deposit on a boat in Croatia. as far as I can reasonably see the deposit is sacrificial as although I don't want to loose it and it does specifically state subject to Survey, Sea Trial, satisfactory proof of EU VAT paid and title, the cost of challenging to get it back would probably be higher than the deposit.

The boat is at a very good price but I could not afford to loose the whole value, even the deposit would sting hard.

The boat (a Sealine) was bought by a Slovenian company new in 1998, Slovenian tax was paid but this was prior to EU membership. The current owner is also Slovenian and bought the boat from the company in 2010 as a private individual, the invoice clearly shows that DDV (I am told this is Slovenian VAT) has been paid to the company at 20% of the purchase price.

To my mind this clearly shows that VAT has been paid to an EU state. Am I correct in presuming this?

 

[Deleted User YDKXO]

Yes you are correct, assuming that the name of the Slovenian company who owned the boat and the Slovenian individual who is selling it to you, as stated on the invoice, match the bills of sale confirming the changes in ownership between company and individual. It is not your responsibility to check whether the transaction has been properly accounted for in the books of the Slovenian company, if that is what you are worried about

Is the invoice original or copy? Is there a company stamp on it confirming receipt of payment from the individual?

If you are worried take it to a local commercial lawyor in Slovenia for an opinion

 

[Deleted User YDKXO]

I have just had another thought. I kept my last boat in Croatia and I paid VAT in Croatia on it. The whole transaction was handled by a surveying company called Maritimus http://www.maritimus-consultant.hr in Split, the owner of which also contributed to these forums at one time. They might be worth a call for their opinion of the VAT invoice and for any other problems you might have

 

[wonky]

On another point, if a company (leasing) is selling a boat and are happy to quote an invoice with vat separate do you have to pay in that country or can you elect to pay when you've imported the vessel?

 

[ian38_39]

Yes you are correct, assuming that the name of the Slovenian company who owned the boat and the Slovenian individual who is selling it to you, as stated on the invoice, match the bills of sale confirming the changes in ownership between company and individual. It is not your responsibility to check whether the transaction has been properly accounted for in the books of the Slovenian company, if that is what you are worried about

Is the invoice original or copy? Is there a company stamp on it confirming receipt of payment from the individual?

If you are worried take it to a local commercial lawyor in Slovenia for an opinion

Thank's Mike,

The invoice is an original, the names match, both the director of the company selling and the current owner who is named on the invoice, the company exists, the invoice is signed by the director but from memory is just headed paper without a stamp.

The company is a decent sized Slovenian lighting company rather than anything to do with boats but as the boat was bought and owned by them then realising capital from an asset would to my mind be selling in the course of business? an event listed in HMRC guidance notes on the subject.

Croatia seems a beautiful place to cruise but it is frightening me a little at the moment, I guess the sums of money involved only hit home once the deposit was paid.

Ian,

 

[Greg2]

Ooh, what are you buying Ian? Do tell!

 

[ian38_39]

will let you know if/when it is on its way back Greg, don't want to tempt fate

 

[Greg2]

Look forward to it Ian! Good luck!