Australian Citizenship / Residency for sailing in the Med

[Pete Carr]

Will there be any tax implications with registering the boat in Oz even if the boat is physically in the EU?

Only the rather sky high Aus registration fee's i think. As the boat will probably never venture to Australia, I dont think any import duties will be required.
But I may be totally wrong, which is why I asked the advice, so all replies are really appreciated.

 

[Irish Rover]

Only the rather sky high Aus registration fee's i think. As the boat will probably never venture to Australia, I dont think any import duties will be required.
But I may be totally wrong, which is why I asked the advice, so all replies are really appreciated.

In a nutshell I'd say you're well covered to buy a VAT NOT PAID boat inside the EU and keep it there on a transit log or outside such as your target in Turkey and bring it in on a transit log provided of course you don't mind telling a fib or two. Go for it.

 

[Birdseye]

No, at the moment UK boats are free to roam the EU if VAT paid and will (it appears) still be able to do so if physically in EU when we exit. Problem is, you haven't defined whether you intend to buy a new boat ex VAT and where or, a second hand one which may be subject to VAT if brought into EU or UK and, whether this year or next as different situations will most likely apply. Suggest you read some of the import/export documents on UK VAT site.

Obvious question is "when do we exit"? You are assuming its the end of transition but my guess is that legally we have already left

 

[Graham376]

Obvious question is "when do we exit"? You are assuming its the end of transition but my guess is that legally we have already left

Answered here - StackPath

 

[Pete Carr]

In a nutshell I'd say you're well covered to buy a VAT NOT PAID boat inside the EU and keep it there on a transit log or outside such as your target in Turkey and bring it in on a transit log provided of course you don't mind telling a fib or two. Go for it.

Many thanks for your answers 'I.R.' they are really appreciated.
Would there be any difference if the VAT NOT PAID boat was purchased outside the EU? i.e. located in Turkey and sold by a Canadian?

 

[Irish Rover]

Many thanks for your answers 'I.R.' they are really appreciated.
Would there be any difference if the VAT NOT PAID boat was purchased outside the EU? i.e. located in Turkey and sold by a Canadian?

I'm not entirely sure what you're asking? Even if the boat you're thinking to buy in Turkey was currently EU VAT PAID it would automatically become VAT NOT PAID if it changes hands outside the EU. But as regards bringing it into the EU on a transit log it's as described previously - you need to satisfy customs that you are resident outside the EU which shouldn't be a problem with your Oz passport.

 

[Tony Cross]

Many thanks for your answers 'I.R.' they are really appreciated.
Would there be any difference if the VAT NOT PAID boat was purchased outside the EU? i.e. located in Turkey and sold by a Canadian?

Any boat that is sold outside the EU and then imported into the EU is considered not VAT paid.

 

[Pete Carr]

Ah! I didnt know that, thanks for clarifying guys, the overall picture is slowly getting clearer in my thick head.

 

[Baggywrinkle]

When I bought a VAT not paid boat from a charter company it was handed over in the marina and I was sent straight to the customs dock in Split. After completing the export paperwork, the boat was immediately exported from Croatia by me sailing off into the sunset.

I already had it's UK registration, insurance and everything else sorted out so we re-named the boat at sea, switched the flag, turned round and headed back into Croatia under UK flag and with a new name. We were welcomed by the customs/police and filled out the paperwork for an 18 month temporary import. Job done - boat resident in Croatia with no VAT paid. - This was before Croatia joined the EU.

After that we just needed to repeat the process every 18 months to reset the clock .... it takes about half a day. Now we are "VAT paid" because Croatia joined the EU and the rules governing yachts over 8 years old in a country joining the EU dictate that they simply become EU goods without the need to actually pay VAT.

If you do everything using your Australian passport then it should all work out fine - provided they don't get wind of your UK residency - as an EU resident (which the UK currently is), you are liable for VAT on purchases inside the EU. Keep everything Australian (registration, flag, your passport) and it will all be much less interesting to any over-zealous customs official. UK flagged with an Australian passport will raise suspicion because you need to be UK resident, have UK commercial interests, or be a UK citizen to register a boat on the UK - the customs officials know this and will be more likely to dig into your circumstances.

This post is not a recommendation to avoid VAT you are legally required to pay.

If, as assumed, the UK becomes a third-country when it eventually does leave the EU it will be effectively no different to Australia from an EU perspective. UK/Australia will make no difference.

But with Brexit being the shambles it is, who knows what will happen.

 

[Pete Carr]

When I bought a VAT not paid boat from a charter company it was handed over in the marina and I was sent straight to the customs dock in Split. After completing the export paperwork, the boat was immediately exported from Croatia by me sailing off into the sunset.

I already had it's UK registration, insurance and everything else sorted out so we re-named the boat at sea, switched the flag, turned round and headed back into Croatia under UK flag and with a new name. We were welcomed by the customs/police and filled out the paperwork for an 18 month temporary import. Job done - boat resident in Croatia with no VAT paid. - This was before Croatia joined the EU.

After that we just needed to repeat the process every 18 months to reset the clock .... it takes about half a day. Now we are "VAT paid" because Croatia joined the EU and the rules governing yachts over 8 years old in a country joining the EU dictate that they simply become EU goods without the need to actually pay VAT.

If you do everything using your Australian passport then it should all work out fine - provided they don't get wind of your UK residency - as an EU resident (which the UK currently is), you are liable for VAT on purchases inside the EU. Keep everything Australian (registration, flag, your passport) and it will all be much less interesting to any over-zealous customs official. UK flagged with an Australian passport will raise suspicion because you need to be UK resident, have UK commercial interests, or be a UK citizen to register a boat on the UK - the customs officials know this and will be more likely to dig into your circumstances.

This post is not a recommendation to avoid VAT you are legally required to pay.

If, as assumed, the UK becomes a third-country when it eventually does leave the EU it will be effectively no different to Australia from an EU perspective. UK/Australia will make no difference.

But with Brexit being the shambles it is, who knows what will happen.

That is very interesting, especially how you managed to become effectively VAT paid without actually having to pay it, right place right time I guess? but an excellent result, well done you.

Current talk does seem to indicate, that we may well be deemed the same as any every other non EU country after Jan 2021, which would make the process of Australian registration a pointless exercise.
One day we will find out.