cheap VAT on big boats

[tcm]

If anyone is planning to buy a boat over 15m, you can use italian leasing which atracts only 8% vat on the lease payemnts and yet still have a british flag. The amounts are fixed, though in euros. This means that the price to pay (in euros) over three years is actually a bit less than the net price plus vat. Of course, they still have to have to check u out regarding creditworthiness and they only want to lend 75%. But it is with ING who have squillions does not seem dodgy. after three, four or five years tyou make a final payment to purchase the thing, and the full rate of vat applies on that final payment. You then own a vat-paid boat. PM me for a contact email addy. No, i am not on commision. But nobody seems to be making tons of money out of it unlike what seems somewhat sharkier moneylending in the UK, and a tax regime which doesn't recognise that they ought to be lower % on larger amounts else the froggies or eyties in this case will kop the loot.

<hr width=100% size=1>

 

[jfm]

alternatives

Ahem as you know I have been digging into the Fr, IT and Sp VAT systems re upgrading the boat.

The It and Fr systems work as you say and are good for new boats. However we have decided the Spain system is better and we're gonna use that. In spain you either (a) buy 2nd hand 1year old or (b) buy new boat into a charter company for one year, then you take the boat personally and pay VAT on it at that point.

Regardless of the price you pay for the boat, the Sp VAT people value the boat on tables, ie 40% depreciation in year 1, etc etc. And the options get ignored. So you pay VAT at 16% on half the price you paid for the boat, ie 8%. QED. Same rate as It but no messing with ING and you get title to the boat yourself and British flag etc

<hr width=100% size=1>

 

[MapisM]

British flag

Just curious: both you and jfm mention the British flag as if it would be an advantage.
In the med many italians have boats with french flags (the vat advantage in FR is available since long time, whilst it's pretty new in IT), but that is perfectly legal.
I guess it should be the same within any EU country.
Or am I missing something?

<hr width=100% size=1>

 

[jfm]

Re: British flag

No big deal, just:

1. seems familiar, being a brit. comfort blanket. The authority that records title to boat is one close to home, in case any arguments.....

2. TCM knows about this, more exp than me, but the police may be less likely to board and spot check if you have ICC etc and levy cash fine, if GB flag ??

3. If Fr flag, owner must be Fr resident, so have to set up a Fr company etc to own the boat. That comes as part of the leasing package TCM mentions. Otherwise hassle. If GB flag, then can just own boat directly

I may be wrong on some (all?) aspects of above, just answering so far as I know.....

<hr width=100% size=1>

 

[Deleted User YDKXO]

Re: alternatives

Interesting

<<(b) buy new boat into a charter company for one year>>

Is this a Spanish registered company or a UK company?
What do you need to do to convince either C & E to refund the VAT?
Do you need keep the charter operation going to keep the ex VAT status

<hr width=100% size=1>