Croatia EU VAT - New Advice!?

Well, for those still in the dark: I posted here since one of my friends has such situation - old boat in Croatia, no CE mark, no EUR1 to show, though he has all the boat's original papers otherwise - only no idea if anyone would accept any of it.
At the moment he just plans to sail the boat out before the season, to Greece or such. Boat is from EU, he can register in Poland or wherever - and forget the whole thing...
 
Rossynant said:
Well, for those still in the dark: I posted here since one of my friends has such situation - old boat in Croatia, no CE mark, no EUR1 to show, though he has all the boat's original papers otherwise - only no idea if anyone would accept any of it.
At the moment he just plans to sail the boat out before the season, to Greece or such. Boat is from EU, he can register in Poland or wherever - and forget the whole thing...
Click to expand...
Isn't the whole point only for yachts/boats (Croatia makes distinction with =>/< 12m) less than 9 years old, which your friend can prove? If so, no need to change registration to Croatian and invoke all the costs and administrative harassment.

On the other hand, can we be sure what will be accepted for foreign registered vessels as proof of "Deemed VAT-Paid"? I only know that I shall NOT be in Croatian waters on 1st July this summer, as I would normally be.
 
@ barnacl1e

Can you give cash guaranty for your statement to boat owners. In croatia we have following sentence: "bether is eating everyting than talking everything". Difference between +- 12 meter boats is where they will be registered. -12 metres Harbour master office, +12 meters Croatian register of shipping. All pay unless have EURO 1. Pity but reality.

Regards Sinisa
www.maritimus-consultant.hr
maritimus.consultant@st.t-com.hr
 
Barnac1e said:
Isn't the whole point only for yachts/boats (Croatia makes distinction with =>/< 12m) less than 9 years old, which your friend can prove? If so, no need to change registration to Croatian and invoke all the costs and administrative harassment.
Click to expand...
My friend's boat is registered in Croatia... that is making it so interesting. Frankly, time ago our register here was not so user friendly, specially so for boat kept on the MED, so Croatia (and Yugoslavia before) was flag of convenience.
 
Maritimus said:
@ barnacl1e

Can you give cash guaranty for your statement to boat owners. In croatia we have following sentence: "bether is eating everyting than talking everything". Difference between +- 12 meter boats is where they will be registered. -12 metres Harbour master office, +12 meters Croatian register of shipping. All pay unless have EURO 1. Pity but reality.

Regards Sinisa
www.maritimus-consultant.hr
maritimus.consultant@st.t-com.hr
Click to expand...

What statement do you have a problem with? I merely wrote that a distinction is made at 12m, which you seem to concur with in that they are held on separate registers. I never stated, nor even implied, that either escaped any payment.
 
@ barnac1e

You wrote today at 1808

Quote
Isn't the whole point only for yachts/boats (Croatia makes distinction with =>/< 12m) less than 9 years old, which your friend can prove? If so, no need to change registration to Croatian and invoke all the costs and administrative harassment.
Unquote

and at 1845 you wrote

Quote
I never stated, nor even implied, that either escaped any payment.
Unquote

Regards Sinisa
www.maritimus-consultant.hr
maritimus.consultant@st.t-com.hr
 
Maritimus said:
@ barnac1e
Quote
Isn't the whole point only for yachts/boats (Croatia makes distinction with =>/< 12m) less than 9 years old, which your friend can prove? If so, no need to change registration to Croatian and invoke all the costs and administrative harassment.
Unquote
and at 1845 you wrote
Quote
I never stated, nor even implied, that either escaped any payment.
Unquote
Click to expand...

You have completely misunderstood my meaning. The 12m distinction was to explain the "yachts/boats" definition, no more. The "invoke all the costs" was referring to those who need to pursue Croatian registration to obtain the VAT reduction rather than pay the full 25%. My point to Rossynant was that such should not be necessary for his friend's "old boat in Croatia", if the age could be proved to be more than 8 years old. All IMO, of course. Your professional opinion may be different, and would be valuable input to this thread.
 
This will may be clear thing. One of clients was asking administration and received answer below.

1.) What about boats elder than 8 years, so before 2005? No taxation for this?

In the process of accessing the EU, Croatia has a duty to coordinate the Law on VAT with the VAT Directive. VAT Directive, with regards to the article 410, prescribes that the import of goods is not eligible for taxes if the first date of use was more than 8 years ago from the date of accessing the EU or if the amount of VAT is considered negligible. Given that some of the state members of the EU have prescribed such a regulation, we believe that Croatia will do the same. However, at this point, such Law regulations do not exist in Croatia. As soon as such regulations should be passed, we will make sure to contact you.

Regards Sinisa
www.maritimus-consultant.hr
maritimus.consultant@st.t-com.hr
 
Maritimus said:
This will may be clear thing. One of clients was asking administration and received answer below.

1.) What about boats elder than 8 years, so before 2005? No taxation for this?

In the process of accessing the EU, Croatia has a duty to coordinate the Law on VAT with the VAT Directive. VAT Directive, with regards to the article 410, prescribes that the import of goods is not eligible for taxes if the first date of use was more than 8 years ago from the date of accessing the EU or if the amount of VAT is considered negligible. Given that some of the state members of the EU have prescribed such a regulation, we believe that Croatia will do the same. However, at this point, such Law regulations do not exist in Croatia. As soon as such regulations should be passed, we will make sure to contact you.

Regards Sinisa
www.maritimus-consultant.hr
maritimus.consultant@st.t-com.hr
Click to expand...

With all due respect, I think this is the root of the problem. Every other country that has joined the EU has had this 8 year rule from the EU Vat Directive, article 420. Croatia will most probably also have the rule but because it is a "directive" it has to be implemented by the Croatian government and become part of Croatian law, effective from 01.07.2013.

This has not yet been done, and the government are not indicating when or if it will be done. This is creating uncertainty for all foreign owned old boats in Croatia.

Add to that the requirement for a EUR1 and "nothing else will do!" seems also like a very unfair way to get older EU sourced boats to pay import duty.

This effectively makes it uneconomical for owners of old boats to take the 5% offer as with all the other associated costs it will run into thousands of euros - possibly more than 20% of the value of an older boat.

This means that owners of older boats have a dilemma.

Go to Slovenia or Italy and pay 20% of a cheap boat (approx €4000 on a €20,000 boat). Or pay 5% + 1,7% + agents fees + registration + light dues + radio license + translations etc. This could easily cost €4000 in total and so far it doesn't seem particularly easy - especially as there are many agents who just want to take the money.

The other option for older boats is just to go to Turkey, which for owners who fly to Croatia wouldn't make that much of a difference.

I personally think the 5% offer is a great way for newer boats to stay in Croatia, but we all know older, less valuable boats should be exempt, just like they were in other countries.

They probably will be it's just the Croatian government seem to be refusing to comment or give any information on this point. The only conclusion I can draw is that it is an attempt to frighten even older boat owners into the 5% scheme.

For me the worst case scenario is Croatia tries to avoid the directive and charges all older boats 25%. This will then be dragged through the European Courts by the affected boat owners until the money is paid back - that would be a real shame.

Why can't Croatia simply promote the 5% scheme for newer boats, clarify the requirements for showing EU origin and honour the 8 year VAT Directive. Then everyone will know exactly where they stand and be happy to stay in Croatia. As it is we are all in a panic because it appears that Croatia is trying to maximise profit at the expense of the international boating community.

I'm sorry to direct this at you but it is extremely frustrating for boat owners. If you have any means to convey this frustration to your tax authorities and government then please do so.
 
Maritimus said:
Let's finish this issue forewer as fare as i am concerned. Only boats which can present EUR 1 are examped from paying custom tax. All boat have to pay VAT 5%. You can put this up or down, left or right , inside or outside, ask president of Croatia but things will not change. If you can accept this live on light if not continue enjoying dark.

Regards Sinisa
www.maritimus-consultant.hr
maritimus.consultant@st.t-com.hr
Click to expand...

When did the EUR1 form start ?.... It wasn't around in my day.
My guess its only been around for a few years ? - So we are saying if your EU boat is older than a couple of years then your screwed! ! Croatian customs wants your cash !
Only boats lucky enough to have a magic EUR1 form pay 5% all the others pay 6.7% (5%+1.7%) + all the other feeeees

Without starting another Form war - Anyone heard or got an EX1 form ?? Was this a prelude to the EUR1 ?

:-) who's got the email for the President of Croatia ;-)

PS.. maybe try Turkey for a few years with an 18% bump over to Cyprus :-o
 
Last edited:
@ Baggywrinkle

I am happy that first time my country behaving in our interest. Yes. On June 1st they will probably adopt EU Vat Directive, article 420. I like this PROBABLY. And this is reason why import will close May 31st. So who want gamble welcome. We need money badly and we expect from our European friends that will support our budget deficit.

Going to Slovenia or Italy?
You think that they don't have light and safety dues? You think that you don't need import agent and forwarder. You think it is free? Handling cost will be more or less same.

Going to Turkey?
What fun. Half of Europe can reach Croatia by car in several hours. Cheap flights from all EU countries. You can spent weekend on your boat for little money. In Turkey it will not be possible. Where are marinas in Turkey? Usually several hours from nearest airport. Extra cost. Safety? I was in Didim marina in Bodrum several years back. I felt like in prison. Armed guards and wire all around marina. What a fun. And last but not last how you can compare Croatian coast with Turkish???

I tell you.
Some boats will move to Montenegro but they are short of berths. Majority will pay and stay and our budget will benefit out of this. This is small price for having such beautiful country in EU.

Regards Sinisa
www.maritimus-consultant.hr
maritimus.consultant@st.t-com.hr
 
Maritimus said:
@ Baggywrinkle

I am happy that first time my country behaving in our interest. Yes. On June 1st they will probably adopt EU Vat Directive, article 420. I like this PROBABLY. And this is reason why import will close May 31st. So who want gamble welcome. We need money badly and we expect from our European friends that will support our budget deficit.

Going to Slovenia or Italy?
You think that they don't have light and safety dues? You think that you don't need import agent and forwarder. You think it is free? Handling cost will be more or less same.

Going to Turkey?
What fun. Half of Europe can reach Croatia by car in several hours. Cheap flights from all EU countries. You can spent weekend on your boat for little money. In Turkey it will not be possible. Where are marinas in Turkey? Usually several hours from nearest airport. Extra cost. Safety? I was in Didim marina in Bodrum several years back. I felt like in prison. Armed guards and wire all around marina. What a fun. And last but not last how you can compare Croatian coast with Turkish???

I tell you.
Some boats will move to Montenegro but they are short of berths. Majority will pay and stay and our budget will benefit out of this. This is small price for having such beautiful country in EU.

Regards Sinisa
www.maritimus-consultant.hr
maritimus.consultant@st.t-com.hr
Click to expand...

I appreciate that Croatia has a budget defecit, so do many countries in the EU - we are not all rich with money to burn, and sailing is a hobby for which many older boat owners make sacrifices to be able to afford - we choose to stay in Croatia because of the scenery, the freindly people and excellent facilities.

I know for a fact that in Italy and Slovenia there are no additional fees for a UK registered boat other than EU VAT. All the other costs are associated with the flag state, so for me it would be the UK, not what Italy or Slovenia might charge their own flagged vessels.

I agree with your comments on Turkey, but there are many boat owners considering this option.

Croatia is a beautiful cruising area, and in the long run I am happy to contribute many euros to the Croatian economy through marina fees, boat maintenance etc. I've been cruising in Croatia for the best part of a decade with charter companies and now with my own boat.

All we ask is that the Croatian government doesn't force high fees and taxes so that I and many other owners of older boats can continue to contribute to the Croatian economy instead of being forced to leave. This year I have only paid my marina fees up 'till June because I don't know what will happen on 01.07.2013. This can't be good for the marina. If I knew the status of the VAT Directive I'd happily pay for the year.
 
Maritimus said:
Going to Slovenia or Italy?
You think that they don't have light and safety dues? You think that you don't need import agent and forwarder. You think it is free?
Handling cost will be more or less same.
This is small price for having such beautiful country in EU.
Click to expand...
:)
Yes, probably it's free. :cool:
Cannot speak for Italy, sorry, but EU citizen usually will be charged the VAT only; no EU citizen have no reason to pay anything anyway.

In Poland (we did same thing as Croatia now, note - joined EU) tax or Customs have no additional fees, no agent necessary. Only the dues, as stated. Nobody needs the boat as such - mine never came to Poland anyway.
Registration - should anyone want it - costs 30 euro for boats 9-12 m LOD, 40 euro for bigger; done by correspondence or by the internet, just send the particulars. Same in UK IIRC.

What are those "light dues" "safety dues" or "radio license"?
Never heard of... :confused:

We are happy indeed to welcome Croatia in EU :)
 
Last edited:
Rossynant said:
:)
Yes, probably it's free. :cool:
Cannot speak for Italy, sorry, but EU citizen usually will be charged the VAT only; no EU citizen have no reason to pay anything anyway.

In Poland (we did same thing as Croatia now, note - joined EU) tax or Customs have no additional fees, no agent necessary. Only the dues, as stated. Nobody needs the boat as such - mine never came to Poland anyway.
Registration - should anyone want it - costs 30 euro for boats 9-12 m LOD, 40 euro for bigger; done by correspondence or by the internet, just send the particulars. Same in UK IIRC.

What are those "light dues" "safety dues" or "radio license"?
Never heard of... :confused:

We are happy indeed to welcome Croatia in EU :)
Click to expand...

I am surprized that you are boat owner and that you don't know what is light dues and safety dues. Each country which have sea including Poland is charging this. What you think who is building Lights, lighthouses and oder signals at sea and who is paying for this. Governments (agencies) are building and users are paying. Same is for SAR (search and rescue). Did anyone ever received bill for saving lifes? No. This is financed from safety dues. Property is different but this is not goverment care. What is vignette? Light and safety dues made on one paper to save you running around and paying several different bils.

Regards Sinisa
www.maritimus-consultant.hr
maritimus.consultant@st.t-com.hr
 
Maritimus said:
I am surprized that you are boat owner and that you don't know what is light dues and safety dues. Each country which have sea including Poland is charging this. What you think who is building Lights, lighthouses and oder signals at sea and who is paying for this. Governments (agencies) are building and users are paying. Same is for SAR (search and rescue). Did anyone ever received bill for saving lifes? No. This is financed from safety dues. Property is different but this is not goverment care. What is vignette? Light and safety dues made on one paper to save you running around and paying several different bils.

Regards Sinisa
www.maritimus-consultant.hr
maritimus.consultant@st.t-com.hr
Click to expand...

As a U.K. registered boat there is no annual charge for SAR or lights for pleasure craft. The radio license is also free and printed online.

The U.K. has a long history as a seafaring nation and as such there is very little regulation or government collected fees. Boat registration on the Small Ships Register (SSR) costs approx €30 and that's it. No light dues, no SAR charges, no radio license charges. You don't even need registration if you only sail U.K. waters.
 
May be I am posting jokingly, but naturally know what I am paying as boat owner.
No, I am not paying any such "dues".

Why are you surprised?
No, Poland is not asking anybody else to pay for what should the state provide for all. This is a duty; not a business.
Have been in so many various countries by sea, but only other I can recall that charged anything was Greece.
 
Last edited:
Golden Goose = Agent that understands how a totally valid EU origin boat, but without an EUR1, needs to produce as 'an adequate statement on the receipt' to be rightfully exempt the customs charge as per the European Free Trade Agreement that Croatia is already a party to.

Then we can all pay the VAT & Fees and our annual mooring fees :-))
 
Last edited:
You must log in or register to reply here.

Share this page

Top