Buying a VAT unpaid boat in Croatia

[Irish Rover]

I'm in the process of buying a VAT unpaid boat in Croatia. I'd read previously that immediately after customs export procedure you'd need to take the boat out of Croatian waters by the most direct available route and proceed to a 3rd country without re-entering. The boat I'm buying is in the Split area so going out of Croatia by the most direct available route and staying out until I enter Montenegro would be a pain. The broker is telling me I can take the boat to Dubrovnik myself and do the customs export there. Be great if I could but strikes me as strange. Does anyone have any experience of this they can share.

 

[Irish Rover]

Bump

 

[Baggywrinkle]

I did exactly the same, also out of Split. You don't need to leave Croatian waters, there is no minimum limit to stay out, you can sail out of sight, turn round and re-enter under temporary admission. No VAT needs to be paid - the one advantage of B-Day ...

To renew my TA I sailed out of sight, turned round and came back in on the same day - this time in Pula.

PM me if you need the details.

 

[Irish Rover]

I did exactly the same, also out of Split. You don't need to leave Croatian waters, there is no minimum limit to stay out, you can sail out of sight, turn round and re-enter under temporary admission. No VAT needs to be paid - the one advantage of B-Day ...

To renew my TA I sailed out of sight, turned round and came back in on the same day - this time in Pula.

PM me if you need the details.

Thank you. It would certainly suit me if I could take it to Dubrovnik and do check-out there rather than check-out Split and then another check-in and check-out in Croatia. My son is going to join me for the first part of the delivery trip but his time is limited and we'd like to make it as far as Athens asap so he can fly back to Ireland from there. We'd be planning to motor by day only and a stop at each of Montenegro, Albania, Corfu, Lefkada, and Corinth would be what we'd probably be aiming for. Cruising the Adriatic at a more leisurely pace will have to keep for another time.
When I get around to detailed route planning I'll be posting another thread canvassing info on Montenegro and Albania stops.
I'll be chasing the broker for more specific information about the check-out as soon as the survey is done and hopefully passed.
Thanks again.

 

[Baggywrinkle]

Thank you. It would certainly suit me if I could take it to Dubrovnik and do check-out there rather than check-out Split and then another check-in and check-out in Croatia. My son is going to join me for the first part of the delivery trip but his time is limited and we'd like to make it as far as Athens asap so he can fly back to Ireland from there. We'd be planning to motor by day only and a stop at each of Montenegro, Albania, Corfu, Lefkada, and Corinth would be what we'd probably be aiming for. Cruising the Adriatic at a more leisurely pace will have to keep for another time.
When I get around to detailed route planning I'll be posting another thread canvassing info on Montenegro and Albania stops.
I'll be chasing the broker for more specific information about the check-out as soon as the survey is done and hopefully passed.
Thanks again.

If you're buying VAT free then you will have to check out immediately .... it's not just a check-out, it's an export procedure and they effectively kick you out of the country as soon as the boat changes hands due to its VAT unpaid status ... if you can persuade the seller to relocate the boat to Dubrovnik before the sale then you could do the sale and export there instead.

I sailed north and checked in again on Mali Losinj 30 hours later so it was an overnight run during which time I changed the boats flag and name - I'd registered in the UK SSR beforehand so had the number and stuck the new name and SSR on the stern and switched the Croatian flag out for the Red Ensign. Insurance was also in the boats new name. You need the new identity for the next check-in. The boat lived in Pula VAT free until Croatia joined the EU .... I always renewed my TA out of Pula and it was pretty easy, sail out of sight, turn round and come back in on the same day. Was business as usual for the police and customs.

The export process in Split took a while, if I recall rightly we spent most of the morning with the boat quarantined at the customs quay and eventually got released around 2pm on Saturday afternoon - we also paid an agent (although I wasn't entirely sure if it wasn't just extortion) who the charter company had arranged to deal with the police, the spedition company dealing with the export, the removal from the Croatian registry, and customs on our behalf.

The charter companies are used to disposing of their boats this way so should be able to explain the process and help. The customs/police are also used to the boats being checked back in again, just be up-front and tell them that you bought the boat from a Croatian charter company and exported it, and now you want to come back in under TA and spend all your money on Croatian marinas, restaurants, boatyards etc. - they are pretty friendly and helpful on the whole.

Personally, I'd just do an overnighter and head to Tivat in Montenegro in one run but I can understand you might not want to do that. The customs quays on ports of entry are manned by the police 24 hours - we arrived in Mali Losinj around midnight and were held at the customs pier until the customs and harbourmasters office opened the following day when we completed our check-in and TA paperwork. I would not advise stopping along the route anywhere other than an authorised port of entry once your boat is exported and you are checked out. People talk about "innocent passage" but you don't want to be arguing that point with a police launch after being "found" in Croatia without immigration or TA paperwork.

Good luck with your purchase!

 

[Irish Rover]

If you're buying VAT free then you will have to check out immediately .... it's not just a check-out, it's an export procedure and they effectively kick you out of the country as soon as the boat changes hands due to its VAT unpaid status ... if you can persuade the seller to relocate the boat to Dubrovnik before the sale then you could do the sale and export there instead.

I sailed north and checked in again on Mali Losinj 30 hours later so it was an overnight run during which time I changed the boats flag and name - I'd registered in the UK SSR beforehand so had the number and stuck the new name and SSR on the stern and switched the Croatian flag out for the Red Ensign. Insurance was also in the boats new name. You need the new identity for the next check-in. The boat lived in Pula VAT free until Croatia joined the EU .... I always renewed my TA out of Pula and it was pretty easy, sail out of sight, turn round and come back in on the same day. Was business as usual for the police and customs.

The export process in Split took a while, if I recall rightly we spent most of the morning with the boat quarantined at the customs quay and eventually got released around 2pm on Saturday afternoon - we also paid an agent (although I wasn't entirely sure if it wasn't just extortion) who the charter company had arranged to deal with the police, the spedition company dealing with the export, the removal from the Croatian registry, and customs on our behalf.

The charter companies are used to disposing of their boats this way so should be able to explain the process and help. The customs/police are also used to the boats being checked back in again, just be up-front and tell them that you bought the boat from a Croatian charter company and exported it, and now you want to come back in under TA and spend all your money on Croatian marinas, restaurants, boatyards etc. - they are pretty friendly and helpful on the whole.

Personally, I'd just do an overnighter and head to Tivat in Montenegro in one run but I can understand you might not want to do that. The customs quays on ports of entry are manned by the police 24 hours - we arrived in Mali Losinj around midnight and were held at the customs pier until the customs and harbourmasters office opened the following day when we completed our check-in and TA paperwork. I would not advise stopping along the route anywhere other than an authorised port of entry once your boat is exported and you are checked out. People talk about "innocent passage" but you don't want to be arguing that point with a police launch after being "found" in Croatia without immigration or TA paperwork.

Good luck with your purchase!

Thank you for taking the time. Everything you say confirms my concerns about what Sunsail has told me. The survey should be done in the next 10 days and, if it goes OK, I'll chase them more on this aspect.

 

[Stingo]

@Baggywrinkle, good info, but I am having to guess what "TA" stands for?
Teatotallers Anon
Tits & Arse
Territorial Army

HELP, because I don't think any of my guesses are even close. and understanding what TA is might be very important or Totally Appropriate.
TIA

 

[Irish Rover]

@Baggywrinkle, good info, but I am having to guess what "TA" stands for?
Teatotallers Anon
Tits & Arse
Territorial Army

HELP, because I don't think any of my guesses are even close. and understanding what TA is might be very important or Totally Appropriate.
TIA

Is your life so boring you have to try to derail serious threads with schoolboy nonsense?

 

[Stingo]

Is your life so boring you have to try to derail serious threads with schoolboy nonsense?

No, it's a genuine question. I have no idea what TA stands for.

 

[Stingo]

Is your life so boring you have to try to derail serious threads with schoolboy nonsense?

And the award for the most unhelpful reply to a thread goes to Irish Rover

 

[B27]

No, it's a genuine question. I have no idea what TA stands for.

I think it stands for 'VAT Fraud' in Serbo-Croat.

 

[Tranona]

No, it's a genuine question. I have no idea what TA stands for.

Temporary Admission under EU VAT law. It allows third party country boats a stay of 18 months in the EU, renewable after a period outside the EU.

Everyday language for those like Baggywrinkle and Irish Rover who take advantage of it (nothing illegal!)

 

[Stingo]

Thank you, @Tranona

 

[westernman]

I did exactly the same, also out of Split. You don't need to leave Croatian waters, there is no minimum limit to stay out, you can sail out of sight, turn round and re-enter under temporary admission. No VAT needs to be paid - the one advantage of B-Day ...

To renew my TA I sailed out of sight, turned round and came back in on the same day - this time in Pula.

PM me if you need the details.

Croatia is now in the EU. So this will only work if you are not EU resident.
Baggy was EU resident when he did this, but Croatia was not in the EU at the time!

 

[Irish Rover]

No, it's a genuine question. I have no idea what TA stands for.

Then ask the question in a serious way without the other nonsense which invariably leads to others followings suit. I actually assumed you'd remember I answered a question from you yesterday in which I referenced temporary admission see UK Part 1 registration see #7

 

[Baggywrinkle]

@Baggywrinkle, good info, but I am having to guess what "TA" stands for?
Teatotallers Anon
Tits & Arse
Territorial Army

HELP, because I don't think any of my guesses are even close. and understanding what TA is might be very important or Totally Appropriate.
TIA

...

There was a clue in my original text ...

"I did exactly the same, also out of Split. You don't need to leave Croatian waters, there is no minimum limit to stay out, you can sail out of sight, turn round and re-enter under temporary admission. No VAT needs to be paid - the one advantage of B-Day ...

To renew my TA I sailed out of sight, turned round and came back in on the same day - this time in Pula."

... but it's cleared up now so all is good. There's an excellent explanation here: https://taxation-customs.ec.europa.eu/system/files/2018-04/rules_for_private_boats-faq_en.pdf

Also, @westernman is correct, when I bought my VAT free boat in Croatia, it was shortly before Croatia joined the EU - so while Croatia was outside the EU I was able to use my boat in Croatia, under temporary admission (TA), without paying VAT. One other interesting fact is that on accession, when a country joins the EU, all the boats over 8 years old that have not paid VAT and are in the country overnight on the day of accession gain union goods status without paying VAT - for my boat a small import fee was charged and there was another charge for some Croatian paperwork to give the boat union goods status. This I later used to obtain a 2TL to use as proof of union goods status so I could sell the boat VAT paid. I never paid VAT on the boat, so if you're in the market for a VAT free boat, buy one in a country about to join the EU and ensure it is 8 years old or older when the country accedes.

@Irish Rover has a slightly different situation but from a VAT standpoint he has the same situation. He can buy a VAT free boat in Croatia as he is resident in Turkey, so export and immediate re-entry under TA would be fine ....