avoiding vat on purchase of Turkish yacht

paulswaiting

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hi everyone
i maybe about to purchase a yacht in Turkey, it is non VAT paid. i have been told to avoid paying vat all i have to do is sail over to Greece and back to Turkey every 18 months, surely it can not be as simple as this ?
 

macd

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I've no idea about the details of Turkish VAT rules, so afraid I can't help you on any wrinkles in the Turkish system. However, your country of residence could have a bearing. If it's within the EU then, at the instant you arrive in Greece, Greek VAT would be due. As an EU resident, you would not be eligible for relief under temporary importation rules. **

Clearly, if there's a no-deal Brexit, your residence status may abruptly change quite soon; otherwise your status would continue throughout any transitional period.

** P.S. It's not a process I've been through, but it seems that Greece does grant entry to non-EU VAT paid boat owned by EU residents for a period of up to one month. A cruising permit would be required plus, assuming it comes into force, payment of the appropriate cruising tax.
 
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nortada

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Other than when selling or buying a boat, on a broader front, has anybody, anywhere, been asked for proof that VAT has been paid?

In 50 years of boating, I haven’t!
 

macd

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Other than when selling or buying a boat, on a broader front, has anybody, anywhere, been asked for proof that VAT has been paid?

It's certainly rare in the general run of cruising. But, yes -- by a RIB-full of armed military chaps off the Scillies.
If papers are ever going to be inspected in any detail, perhaps entering a large customs zone under a Q flag might be one of the more likely.
 

Tony Cross

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I've no idea about the details of Turkish VAT rules, so afraid I can't help you on any wrinkles in the Turkish system. However, your country of residence could have a bearing. If it's within the EU then, at the instant you arrive in Greece, Greek VAT would be due. As an EU resident, you would not be eligible for relief under temporary importation rules. **

Clearly, if there's a no-deal Brexit, your residence status may abruptly change quite soon; otherwise your status would continue throughout any transitional period.

** P.S. It's not a process I've been through, but it seems that Greece does grant entry to non-EU VAT paid boat owned by EU residents for a period of up to one month. A cruising permit would be required plus, assuming it comes into force, payment of the appropriate cruising tax.

This is true of Greece, I thought it was EU-wide though? You only get the 30 days grace once however, after that VAT is payable or the boat leaves Greece (and the EU I think?) forever.

It will be interesting to see what the VAT rules are post-Brexit, though that all depends on what sort of a Brexit we get.
 

AndrewB

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Other than when selling or buying a boat, on a broader front, has anybody, anywhere, been asked for proof that VAT has been paid?

In 50 years of boating, I haven’t!
Just once, in Leixoes, Portugal in 1996. Actually they were more interested in a brand-new looking yacht that they suspected had been sailed in from the USA.

What it does affect is the value of the yacht. Because one always might be checked, without proof that VAT was paid the resale price of the yacht is lower.
 

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