buying abroad - VAT & paperwork

[cpthook]

I'm thinking about buying a yacht in Croatia and sailing it to Corfu to keep it there.
It's in a Marina in Split and it's an old wooden boat, VAT not paid.

Do I have to pay VAT at point of sale and if not, what are my chances of
getting "caught", presumably on the way down to Corfu via Italy or in
Corfu/Greece itself? If I do get "caught" can I simply pay VAT then or will
I have the boat impounded? (I see so many yachts advertised VAT not paid?)

Do I need to carry any other paperwork apart from a certificate of competence
and a VHF licence? What documents should the marina produce? Do I need to
hire an agent? Many thanks in advance.

 

[jamesjermain]

When you import a boat into the EU you pay VAT at the point of entry. Customs will probably accept the price you paid as the value of the boat but have the right to do their own valuation if they think the price artificially low. There is a reasonably good chance of getting caught if you regularly pass between the various EU countries of the Mediterranean.

Strictly speaking you do not need a Cwertificate of Competence if you are a British citizen sailing a British Registered boat. However, it may well save you some hassle if you do have one. For the same reason you should also carry a certificate of insurance. You must have a certificate of Registration and passports for all crew.

But beware! If the boat is new to the EU and has not been certificated under the Recreational Craft Directive, you will have to get this done and it can cost a great deal of money - certainly enough to make the purchase unattractive.

JJ

 

[cpthook]

hi, many thanks. It's currently under a Belgian flag. Does that make any difference
at all?

 

[AndrewB]

This is a frequently asked question - I'd strongly advise you to check out the RYA website (www.rya.org.uk) for offer detailed up-to-date advice.

To answer the question you need to know exactly how old the yacht is, whether it has ever been in the EC before (and if so when), and whether you are EC resident. However, if it has never been in the EC before, and you are a UK resident, technically you will have to pay VAT at your first port of entry into the EC. When you enter and clear customs in Greece or Italy you will have to declare its status.

The yacht may also have to pass the RCD compliance tests, which is more troublesome. There is some advantage to getting it UK registered before you leave Croatia.

 

[jamesjermain]

Not really.

As AndrewB says, it all depends on when she was built, whether she has been in the EC/EU before and when, and whether she was built to RCD requirements. Go to the RYA website (www.rya.org.uk) and go to the FAQs section for detailed information.

If there is any doubt that you have to comply with the RCD I would back out of the deal quickly.

JJ