Buying a yacht in USA (UK National)

[jregan]

Hi,

I am interested in purchasing a yacht which is currently based in America (West Coast) and wondered if anyone had any advice (apart from don't ;-) as to what problems this would throw up in the areas of tax, registration or if anyone else has gone through this process? Any information gratefully received!

Thanks

John


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[claudio]

Depends where you want to sail, VAT, CE, RCD ...



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[dickh]

There have been lots of posts about this on this forum recently. Basically, if it has always been based in the US, you will have to pay VAT on its value once it's in the EU - doesn't matter which country in the EU. You will then have the problem of getting it "CE Approved" - to bring it up to EU standards - which could be Very Expensive!! There is a firm called, if I remember, "CE Proof" which can do this for you. If the boat is a recent one and is currently imported into the EU, it should be easy to get a CE certificate.
There's lots of experts on this forum and you'll get lots of advice - probably correcting what I've said above.
God Luck!

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I'd rather be sailing... /forums/images/icons/smile.gif

 

[jregan]

Basically 'if' I bought a yacht in the States I would be looking at staying there for a six weeks or so fitting it out and then sailing south pacific -> NZ -> Australia -> SA and then perhaps caribbean and then back to UK.

I know there would be potential VAT issues althought the boat predates 82 or 85 (I can't remember which) so I presume it is free from VAT if this can be proved.

What I really want to know is what problems I would encounter in the states buying a yacht - if any - if I am a UK resident who will sail away shortly after purchase?

Thanks

John

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[wayneA]

John

>What I really want to know is what problems I would encounter in the states buying a yacht - if any - if I am a UK resident who will sail away shortly after purchase?<

Haven't got direct experience of US but I've just purchased a boat in Norway (outside EU), and FWIW I had to get the seller to file a release form with the Norwegian Customs, declaring that I, a UK national will be exporting the boat. Documentation from customs is then kept with boat during transit until finally leaving then country.

>I know there would be potential VAT issues althought the boat predates 82 or 85 (I can't remember which) so I presume it is free from VAT if this can be proved.<

The boat will only be 'considered VAT paid' if it can be proved that it was in commission IN THE EU before the cut off date. If the boat has spent all it's life in the US, you will be liable for import duty (if under 12m), VAT and RCD/CE mark when you import into the EU. This can be very expensive - so do your sums as it may mean paying a premium for a boat that started out as a bargin.

Hope this may be of Help

Wayne

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[AndrewJ]

Other than registration of the boat, assuming you're going to export it, right after you buy it, just get the bill of sale, (USCG web site as a good one to use) make sure there are no liens on the boat and the title is clear. If the boat was USCG documented, you could get a xerox copy of the documentation certificate, which, while not of immediate value to you, gives you the specifics, (size, weight, hull number, etc.) also will specify if
there is a lien on the boat. Sales tax is imposed by the state, and if you sign a paper saying that you will export the boat, remove it from that
states waters, you can get away without paying sales tax or registering the boat in that state. (even though the boat is documented, some states require that if you sail the boat in their waters, you have to register the boat in that state and pay tax on it.) i.e Florida states you have around 30 days to register a boat that will be used in florida waters, (at least that was the time limit a few years ago..) hope that helps, but if you buy from a broker, s/he can fill you in on the particulars. But be leary of any extra money a broker might ask for, for "sales tax" as brokers don't generally pay the taxes on the boat unless they offer the registration paperwork as a bonus offer. But again, if you're not going to be in that states' waters over a certain period of time, "sail away"..(with the bill of sale of course...)from a private person, just the same, a clean bill of sale and don't worry about the sales tax.
hope that is what you were looking for....or helps...regards...

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[jregan]

Thanks for all the feedback and advice. The VAT situation in the EU and CE marking etc seems to be indicative of the way things are going in the EU - what a nightmare!

Anyway thanks again!

Cheers

John

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[pwfl]

Buy your boat there, sail around the world etc, SELL the boat once you get to the caribbean.



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[jimboaw]

I bought mine 6 years back. I used an agent to handle the paperwork and never did pay the Fl 6% sales tax. I put her on the SSR. Raised a Red Duster then went to US customs and got a cruising permit. My boat was from S.A. so all I had to show was that 2% import duty had been payed. Have had no problems cruising the E Coast, Carribean and Canada. Now on my 4th cruising permit! (layed up for a while) The crap you will get when to return to the EU I have no knowledge of!

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[jregan]

Can I ask who you used for yacht registration and what the process involved? I have talked to the Marine Title Company (www.marinetitle.com) and they will register the yacht only in the states and remove it from USCG (if registered) as I am not a US citizen. However I don't want to sail under a US flag and am now talking to other yacht registration companies.

As the yachts I am interested in are on the West Coast (one in the US, one in Mexico) I don't really want to have to sail to a British port in order to get registered and understand that you can do this from another port as long as you get a survey and a tonnage certificate and provide all other documents.

I will not take the vessel back to the EU for long periods and understand that you can visit for upto 18 months without being liable for VAT?

Thanks for all the information.

Cheers

John

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[wayneA]

FWIW you might try <A target="_blank" HREF=http://www.ward-mckenzie.co.uk/>Ward and McKenzie</A>.

They have delt with all of the paperwork, customs, registration, VAT, etc when buying my boat in Norway to bring back to UK. They are international so prob cover US. I would recommend them, found them reliable, efficeint and good value for money.

May help?

Cheers

Wayne

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[jregan]

Thanks Wayne,

I have contracted them and am awaiting their response.

Cheers

John

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[jimboaw]

For starters, as you are not a US citizen you cannot fly a US Flag. As I said before. Putting the vessel on the SSR with your UK address is all you need to do. My agent in Ft Lauderdale would (for a fee) advise you.

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[qsiv]

I presume that this doesnt apply to boats that will only spend a few days in Florida? I'm still hoping to do Key West regatta next year, and I cant imagine all the visiting boats have to be registered and tax paid?

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[jregan]

Hi jimboaw,

Thanks for the information. It looks like SSR is the way to go as it seems fairly simple and cheap - just a couple more questions!

I presume you did the SSR registration yourself, and if so is a survey needed to get it registered? Also how long does it take to complete the SSR registration process?

Thanks

John

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[wayneA]

All info on reg (part I and SSR part III) can be found <A target="_blank" HREF=http://www.mcga.gov.uk/flag/home/index.htm>here</A>, including forms. SSR is straight forward, so can do yourself. Don't need measurment/tonnage or survey, do need original bill of sale - but check details from MCA.

Hope this helps

Wayne

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[freedom44]

Its reasonably straightforward.
I sugest you use an agent in US who will process all the paperwork
Stop off at the Azores and pay VAT on your valuation at that time. Again use an agent
the CE difficulty can be got around if you can prove the boat cruised in the extended EEC dependent area of the Carribean befaore a certain date ( I cannot rememberexactly).

The exchange rate is not so friendly now but there are still some amazing deals to be had.


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