Boat selection and VAT?

[TSailors]

Hi there. I'm planning on becoming a liveaboard sometime in the near future. Me (Turkish+British) and my wife (Turkish) we intend to travel the Med, the UK, and maybe even cross the atlantic if all goes well. Should I be purchasing a boat from the UK, from the EU, or a non-EU country is my main concern. The VAT makes things very confusing. Many thanks, -t

 

[Ningaloo]

Where are you resident and where do you pay tax?
If UK then buy a boat without VAT and use TA to give you 18 months in EU, although this means you will not be able to bring boat to UK.
If EU then you can't escape VAT.

 

[Irish Rover]

Hi there. I'm planning on becoming a liveaboard sometime in the near future. Me (Turkish+British) and my wife (Turkish) we intend to travel the Med, the UK, and maybe even cross the atlantic if all goes well. Should I be purchasing a boat from the UK, from the EU, or a non-EU country is my main concern. The VAT makes things very confusing. Many thanks, -t

If I recall correctly from a previous post you are resident in Turkey. That being so a big issue for you cruising the Med will be the 90/180 day rule - you cannot spend more than 90 days in any period of 180 in the EU. Clearly you can get around that by crossing back and forth to Turkey, North Africa, Albania etc as other liveaboard cruisers are doing. However, if my assumption you are resident in Turkey is correct, you will also have difficulties bringing an imported second hand boat into Turkey so it may well be the best solution for you is to buy a Turkish flagged boat. Another option would be to buy an EU VAT NOT PAID boat and get an American flag through a company ownership structure. With a Turkish flagged boat you will get an 18 month transit log for the boat to cruise in the EU although you and your wife will still be subject to the 90/180 restriction.

 

[ashtead]

You might find there are options open to Turkish owners re tax which don’t apply to EU nationals etc so I would be looking for thoughts there as well assuming you are a Turkish national. Have you considered buying your boat in Turkey ? I guess if you want to look at boats the location of vessels might influence VAT paid status so where do you plan to start your trip from?

 

[TSailors]

Where are you resident and where do you pay tax?
If UK then buy a boat without VAT and use TA to give you 18 months in EU, although this means you will not be able to bring boat to UK.
If EU then you can't escape VAT.

Thank you! I live in Turkey..
<ranton>I pay taxes dearly here, and very little goes actually towards improving our lives.. </rantoff>

I would rather buy a boat abroad, say, Greece or Croatia because of its price and amount of choice available, and have it registered either at UK or Delaware or something.. undecided yet.

-turgut

 

[KompetentKrew]

Country of registration doesn't affect VAT status.

If you buy in Greece or Croatia, be aware that you'll be considered of have exported it if it stays out of the EU long enough.

I.e. buy an ex-charter boat with no VAT in Greece or Croatia, take it home to Turkey = no VAT to pay.
Alternatively, buy a VAT-paid boat in the EU and keep it there.