Boats greece vat not paid

Re: Boats Greece vat not paid

Greece is in the EU, and if you buy it for private use you will have to pay VAT if you keep it in the EU. It is only VAT unpaid because it is a charter vessel and there is a provision that allows charter companies to buy boats without paying VAT.
 
Greece is in the EU, so VAT is payable at 19%, methinks.

This website may explain.

But, it looks like there may be loopholes.

<span style="color:blue"> [ QUOTE ]
The taxation laws of Greece are structured in such a way, that all private use yachts under Greek Flag ,over 10 m, are taxed a rather high luxury tax. This luxury tax is based on the length of the boat, regardless of the age, plus the VAT.

On the other hand, as far as professional boats are concerned, there is no luxury taxation and in addition the VAT is exempt. The revenue from the use of the professional boat (charter boats) is also tax-free (this is an incentive to promote the tourist industry in Greece). This explains the existence of many professional boats in Greece although many of them are not used professionally.

For this reason, in Greece, contrary to most countries of the European Union the majority of yacht owners haven't paid the VAT, especially in the cases where the length of the yacht is over 10 m.

When the boat becomes private or is bought for private use by EU Buyers, the VAT must be paid to the Greek Tax Authorities.

As far as Greek Taxation Laws are concerned due to depreciation, the VAT paid when a professional boat is converted for private use will be lower than that of a new boat.

The VAT is 19% on the price mentioned in the Bill of Sale.
With our expertise we will assist you in insuring the appropriate depreciation of the taxed value of the boat.


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[/ QUOTE ]
 
Sorry to rain on your Parade, but Greece is already part of the EU. Chances are if the VAT has not been paid it is probably an ex-charter boat, so the company who owned it have reclaimed the VAT. Either that, or owned by a non-EU national. Either way, you would have to pay the VAT either in Greece, or one of the EU countries you pass back through, or the UK.

BTW, if you want to know anything about buying in Greece and moving boats around in Greece, I have one or two tips /forums/images/graemlins/grin.gif
 
Ex charter boats have to be "de registered" when sold to a private buyer.
It`s my experience with two yachts now that they will not taken off the register until proof of vat paid is given. A bill of sale with the price INCLUDING vat should be ok.
It`s Greece so you may get a differant opinion in say Athens to Levkas.
 
I went through it last year. It is said that the ancient Greeks invented bureaucracy and the modern Greeks made an artform out of it. It took three months to get my boat paid for and cleared out of Greece. The seller should be able to arrange the paperwork. VAT has to be paid and the boat has to be de-registered off the Hellenic Register. The de-reg cost €475 and €130 for the accountant if I remember right. VAT is 19% of the current value. In the end I got a temporary Irish registration because I was not being told how long the de-reg would take. This was a good idea because the Irish embassy in Athens contacted the Hellenic register and I think this speeded things up.
Turned out that it was de-registered the day before I arrived to sail away.
It was all well worth it in the end. There are some great deals there if you do your homework on yachtworld.
They do things very slowly.
Here in Ireland you hand over your money and you get your keys.....Good Luck!
 
If I understand Greek VAT regs correctly, if the yacht is ex-charter then VAT will have been deferred (not reclaimed) until the end of the charter life of the boat. The deferral means that VAT at the Greek rate (19%) is payable when the boat comes out of charter/yacht management. The only way to continue to exclude VAT is if you intend to continue the charter/management status of the boat.

Hence, if you are buying ex-charter or VAT deferred, you will need to pay 19% VAT at the time of purchase.

Hope that helps.
 
Have been told that Greek VAT after charter is due only on sales to EU residents. If you have a trusty person living outside the EU, they can buy the boat, sell it to you, then you arrange to pay EU VAT at optimal rates, wherever (Cyprus low rate, but Spain good for written down value, apparently)
 
You are not quite correct in what you say.

Charters in Greece are subject to VAT at 4.5%. It is the revenue from Greek shipping which is free of income tax (maybe that's why there are so many Greek shipping millionaires)

All professional boats must do a minimum of 60 days charter per year (well, it's actually 180 over three years I think) so if they have a professional flag they must do some charter. However, 30 days per year can be to family or friends I believe.

Although they need only do 1 month genuine charter, they MUST do this and get it all stamped at the Port Police and pay the VAT on it, or they will lose their professional status.

There are a lot of tax breaks but it does require time and money to deal with the paperwork, have the yacht inspected, and to keep all the equipment that is required. Nowadays includes a GMDSS radio which has to have a maintenance contract and annual inspection and (if you are over about 12m I think) an EPIRB which has to be tested annually - although it doesn't need it - this is just Greek bureaocracy.

There are a lot of people who can only afford to have a yacht in Greece if they charter it for 4 - 6 weeks a year as mentioned above. These boats are usually replaced when they are 5 to 10 years old and can be excellent bargains as they won't have been heavily used and, if you find the right owner, will have been taken care of like a private boat.
 
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