Croatia EU VAT - New Advice!?

[Baggywrinkle]

That would sort of make sense as in the UK the dates are pre 1986 and in EU in 1992 - the accession date.

So following that logic just import the boat and register it then it will be deemed VAT paid at the accession date. Sounds too simple to me and not sure that would go to the expense of importing and registering without official confirmation that will be the case.

Perhaps better to pop across to Italy or Greece get a friendly valuation and pay VAT there.

My interpretation is that it's not just the age of the boat, it's the fact that it was in service in Croatia before 1st July 2005, and that's what needs to be proved.

I've sent the following e-mail to the Croatian authorities (The e-mail address mentioned on the registration rules document they published.)

Dear Sir/Madam,

I have a query in relation to VAT payments for pleasure boats in Croatia that were in service in Croatia before 1st July 2005.

In the EU VAT Directive, Article 410 the following law applies....

--------------------------------------------------------------------------------------------------------
Article 410

1. By way of derogation from Article 71, the importation of goods within the meaning of Article 408 shall terminate without the occurrence of a chargeable event if one of the following conditions is met:

(a) the imported goods are dispatched or transported outside the enlarged Community;

(b) the imported goods within the meaning of Article 408(1)(a) are other than means of transport and are redispatched or transported to the Member State from which they were exported and to the person who exported them;

(c) the imported goods within the meaning of Article 408(1)(a) are means of transport which were acquired or imported before the date of accession in accordance with the general conditions of taxation in force on the domestic market of one of the new Member States or of one of the Member States of the Community or which have not been subject, by reason of their exportation, to any exemption from, or refund of, VAT.

2. The condition referred to in paragraph 1(c) shall be deemed to be fulfilled in the following cases:

(a) when the date of first entry into service of the means of transport was more than eight years before the accession to the European Union.
(b) when the amount of tax due by reason of the importation is insignificant.
-----------------------------------------------------------------------------------------------------------

My question is what constitutes suitable evidence of "entry into service" before 1st July 2005 to fulfill 2.(a) above?

I look forward to your answer.

Yours Sincerely,

Let's see what comes back .....

 

[Baggywrinkle]

More info .....

From the EU VAT Directive ...

Article 71

Article 71

1. Where, on entry into the Community, goods are placed under one of the arrangements or situations referred to in Articles 156, 276 and 277, or under temporary importation arrangements with total exemption from import duty, or under external transit arrangements, the chargeable event shall occur and VAT shall become chargeable only when the goods cease to be covered by those arrangements or situations.

However, where imported goods are subject to customs duties, to agricultural levies or to charges having equivalent effect established under a common policy, the chargeable event shall occur and VAT shall become chargeable when the chargeable event in respect of those duties occurs and those duties become chargeable.

2. Where imported goods are not subject to any of the duties referred to in the second subparagraph of paragraph 1, Member States shall, as regards the chargeable event and the moment when VAT becomes chargeable, apply the provisions in force governing customs duties.

This is the bit that says our boats will be subject to VAT when Croatia joins the EU on the 1st July as they will no longer be covered by the VAT exemption. It requires Croatia to collect the VAT.

Article 410 in my last post ammends this, and gives boats in service and in Croatia 8 years before the concession the status that all duties are 'deemed' to have been paid.

The next bit is the definitions .... Article 408(1)(a)

Article 408

1. The following shall be treated as an importation of goods where it is shown that the goods were in free circulation in one of the new Member States or in the Community:

(a) the removal, including irregular removal, of goods from temporary importation arrangements under which they were placed before the date of accession under the conditions provided for in Article 406;

and Article 406

Article 406

The provisions in force at the time the goods were placed under temporary importation arrangements with total exemption from import duty or under one of the arrangements or situations referred to in Article 156, or under similar arrangements or situations in one of the new Member States, shall continue to apply until the goods cease to be covered by these arrangements or situations after the date of accession, where the following conditions are met:

(a) the goods entered the Community or one of the new Member States before the date of accession;

(b) the goods were placed, on entry into the Community or one of the new Member States, under these arrangements or situations;

(c) the goods have not ceased to be covered by these arrangements or situations before the date of accession.

Anyone know a VAT specialist or Lawyer who could give advice on this?

Much as I would like to believe it all, I'd rather someone who really knew what they were talking about have a look into it. Could be a costly mistake ......

 

[Tranona]

Just checked the wording in the HMRC advice (not necessarily the law but the interpretation that they use) covering "deemed VAT paid" status. Two conditions.

1 In use prior to 1 January 1985

2 Located in the EU on 31 December 1992

With a comment that age is not the only factor, evidence of condition 2 is also required otherwise the boat is treated as a new import. They also add that this status can be lost if the boat leaves the EU and changes hands outside and the new owner could be liable for VAT on re-import.

This would tie in with your interpretation if they are derived from the same source.

There was a time when HMRC issued certificates confirming this on sight of the required evidence. However they have stopped this because VAT paid status either through this means or evidenced by a VAT receipt is not permanent and can be lost in subsequent transactions such as this example.

Other states (Poland and Holland for example from comments I have seen) do issue such certificates as registration requires evidence of VAT status (unlike the UK). Would not be surprised if Croatia did the same as getting the status seems to require registration. As you say much will depend on what evidence they require.

BTW it is worth reading the VAT information leaflet on the RYA site which has a FAQ section compiled by HMRC. Although obviously UK orientated it does give an explanation of how they apply the Directive in UK law.

 

[Baggywrinkle]

Just checked the wording in the HMRC advice (not necessarily the law but the interpretation that they use) covering "deemed VAT paid" status. Two conditions.

1 In use prior to 1 January 1985

2 Located in the EU on 31 December 1992

With a comment that age is not the only factor, evidence of condition 2 is also required otherwise the boat is treated as a new import. They also add that this status can be lost if the boat leaves the EU and changes hands outside and the new owner could be liable for VAT on re-import.

This would tie in with your interpretation if they are derived from the same source.

There was a time when HMRC issued certificates confirming this on sight of the required evidence. However they have stopped this because VAT paid status either through this means or evidenced by a VAT receipt is not permanent and can be lost in subsequent transactions such as this example.

Other states (Poland and Holland for example from comments I have seen) do issue such certificates as registration requires evidence of VAT status (unlike the UK). Would not be surprised if Croatia did the same as getting the status seems to require registration. As you say much will depend on what evidence they require.

BTW it is worth reading the VAT information leaflet on the RYA site which has a FAQ section compiled by HMRC. Although obviously UK orientated it does give an explanation of how they apply the Directive in UK law.

They must provide a Croatian VAT reciept when we pay our 5% - registration is required to bring the boat under Croatian juristiction so VAT can be levied legally on an EU national.
This will then count as an EU VAT reciept when Croatia joins on 01.07.2013 - They may or may not issue a seperate document detailing VAT status.

Effectively we will have Croatian Import documentation that proves Croatian VAT was paid and therefore no chargeable event occurs on 01.07.2013.

I suspect if my boat remains U.K. flagged they will have no juristiction over it until 01.07.2013. Then I will lose my VAT free status and a chargeable event will be triggered, requiring Croatia to collect VAT.
Hopefully Article 410 plus evidence of the boat being 'in service' in Croatia before 01.07.2005 means the chargeable event is waived and VAT is deemed paid - I don't expect a certificate to prove it.


My thinking is ...

If boat is less than 8 years old then go for the scheme pronto.
If boat is more than 8 years old and was in Croatia before 01.07.2005 (backed up with proof like marina reciept etc.) then sit tight and don't register but be prepared for a fight.
If boat is worth less than around €20K then flee to Italy as the fees alone and registration requirements would be close to 20% anyway.
If being able to drive to the boat isn't an issue then flee to Turkey, it's nice there too.

 

[BrianH]

Just checked the wording in the HMRC advice (not necessarily the law but the interpretation that they use) covering "deemed VAT paid" status. Two conditions.

1 In use prior to 1 January 1985

2 Located in the EU on 31 December 1992

With a comment that age is not the only factor, evidence of condition 2 is also required otherwise the boat is treated as a new import. They also add that this status can be lost if the boat leaves the EU and changes hands outside and the new owner could be liable for VAT on re-import.

Point 2 is what worries me if I should find myself in Croatia on 1st July - I have no proof other than a signed document by the previous owner, which could easily be claimed as either forged or a lie.

After cruising the region for over 30 years I have no illusions about some of the hired help in positions of authority there. None of Tito's thugs was ever fired at the creation of the new republic and many still haven't reached pensionable age - I have experience of some of their attitudes in out-of-the-way police posts or military garrisons both in Yugoslavia and the new entity - the mentality has hardly changed. The thought of arguing my point about what I should have to pay based on shaky documentation is not one I care to contemplate. I shall definitely give the area a miss this year until I hear how others have fared.

 

[Tranona]

The point is you don't have to "prove" anything to them. Your Bill of Sale says the transaction took place in Holland and it was not a chargeable event, so no VAT was payable. You are in no different position than thousands of others who have old boats with no VAT documentation and move freely around the EU without any questions. I do agree, though that it might take some time for locals used to unfettered power to understand the new rules!

 

[Baggywrinkle]

That's what worries me. At the moment, if a local official decides to take the p**s you have to put up and shut up. The alternative is a court hearing under Croatian law in Croatian courts with all the expense and risk that entails. After July there will at least be the option of the EU laws and courts.

 

[Baggywrinkle]

Update, got a reply from the Croatians ...

Dear Mr XXX,

it means that the date of first entry into service (first registration) was eight years before Croatian accession to the EU.

Best regards,

CCE Tourism Department

Not entirely satisfactory so I replied with this ....

Dear Sir/Madam,

Thank-you for the quick reply.

As my boat is older than 8 years and has always been in Croatia, please confirm there will be no VAT to pay and no "chargeable event" on the 1st July 2013 when Croatia joins the EU. My boat is U.K. flagged.

I am worried that local customs may try and make a charge even though this EU rule means that boats in Croatia and in service in Croatia for over 8 years are deemed VAT paid by this rule.

I would like some re-assurance the Croatian customs and Marinas will be briefed on the EU VAT Directive, particularly Article 410 because it doesn't seem to be known by either the Marinas or the many organisations offering the 5% registration service to EU boat owners.

I don't want to be falsely charged on the 01.07.2013 becuase of lack of knowledge of this rule.

Thank-you again and I look forward to your clarification.

Yours sincerely,

Lets see what comes back ....

 

[Maj1]

Hi there, not sure if i am on the right forum really as this is the first time i have ever posted on anything like this, Our situation is slightly different as our boat is owned by our uk company but owes the Vat on it. Our accountant is looking into all of this but everyone he speaks to doesn't seem to know anything about all of this. We were supposed to meet a guy from a croatian company at the boat show last monday but unfortunately he changed his plans without letting us know so we missed him! (doesn't really give you much faith in him really)
However why I am posting is that the document we received from our marina about all this hightlighted the fact that you can only keep your boat in Croatia for 18 months without having to leave Croatian waters. Ie clear customs out of Croatia and then, clear back through customs into Croatia, We have kept our boat in Croatia for the best part of 9 years only leaving once for a year and have never been informed of this, our worry now is if we try to leave, customs will impound the boat and fine us. Just wondered if anyone else knew about this 18 month rule as it seems some of you have been out there for year as well and if so who told you as our Marina certainly didn't, and we dont have any paperwork from customs with it on as it is all out in croatia with our marina. Any thoughts would be welcome as i know they are hot on fines.

 

[Baggywrinkle]

The response ...

Dear Mr XXXXX,

At this point we can not confirm something that isn't yet Croatian laws. However when Aricle 410. of VAT Directive became part of Croatian Law we will let you now.


Best regards,

CCE Tourism Department

..... gits!!

 

[Tranona]

At least you are getting a response. Not sure you would get that from officials here!

 

[Baggywrinkle]

I've e-mailed the Croatian equivalent of the Inland Revenue with the same query. Waiting for the response. I could look on the bright side and say no-one has said a definitive no yet.

 

[d4raffy]

Got an e-mail from SeaHelp - Austrian company i belong to .. had to use Google translate from German.
http://www.seahelp.eu/en/HR-Import

"
The prospective payment of tax for foreign boats in Croatia becomes clearer and more understandable. SeaHelp, the Adriatic breakdown service, was informed by the WKÖ (the Austrian Federal Economic Chamber) that a meeting between the WKÖ and high-ranking representatives of the Croatian custom office as well as Croatian revenue authorities has already taken place. Details about the planned implementation of the import VAT as well as the associated customs clearance were discussed. In conclusion, questions such as whether the new regulation becomes effective or whether boat owners get considerable financial advantages with customs clearance no longer arise, but it was discussed how the import VAT becomes effective prior to Croatia’s entry into the European Union. Reliable sources know that Croatia is guided by the procedures practiced during Slovenia’s entry into the EU. The simplified general framework looks like that: 5% import VAT for imports into Croatia during the time from 1/1/2013 to 3/5/2013 as well as up to 2,2% payment of customs duties calculated from the boat’s fair value. Those who have not imported their boat in accordance with the regulations after the deadline have to pay 25% import VAT. It is not determined yet if boats which are older than 8 years at the time of import are excluded from the regulation. It would be desirable that the Croatian state clarifies this situation sooner than later so that boat owners can act accordingly and will not miss the 5% regulation. Moreover, Croatian tax experts confirm that the eight-year-regulation is not likely to be used. As an insider so aptly sums it up: “The Croatian state accommodates foreign boat owners with the import VAT, but additionally the state is not willing to give up further revenues. After all, more than 70% of the owners would then fall through the cracks.”

The exact wording of Chamber's written message can be found here:
We (the Chamber, editor's note) could organize a meeting with the Croatian customs office and the Croatian Tax Authority on "Taxation of foreign boats" in Croatia.

At the meeting, the following experts were present, of which we have received the following information:
Croatian Hauptzollamt - Središnji Carinski ured RH
and
Croatian principal tax authority - Porezna uprava

(The names of the individuals have been removed for privacy, we are, however, editor's note)


Definitive import into a temporary reduced VAT rate
On the basis of the Law on the amendment of the VAT. (Zakon o izmjeni dopuni zakona i o na porezu dodanu vrijednost, No. 136/2012, dated 07.12.2012, which will enter into force on 01.01.2013), foreign boats (regardless of their origin) from 01.01.2013 to 31.05.2013 be imported at a reduced VAT rate of 5% to Croatia.
In addition to the 5% VAT. is also a reduced rate of 1.7% to 2.2% (for boats without proof of EU origin by EUR 1 or origin declaration of approved exporter) to pay. In the coming days is to amend the Customs Tariff be announced, due to which this reduced rate of duty will be applied. May be submitted for boats, for which a European certificate of origin (EUR 1 or origin declaration of approved exporter), no import duty is payable. Important: the proof of origin must not be older than four months.
After the import, craft shall be registered in the Croatian ship register and receive a registration number and Croatian flag.
Whether the boats are after Croatia's EU membership, be reinstated in the Austrian ship register and then again operated under the Austrian flag and registration is not yet clear.

Temporary Importation
To be eligible to benefit from the "favorable tariff", the boats have already been introduced temporarily in Croatia or temporarily imported to 30/05/2013. Theoretically, the boats can only have one day had the status of temporary importation, therefore, it would allow the boats temporarily until 30.05.2013 introduce to Croatia. Please note , however, how much time to create the import customs declaration, and their processing is necessary. Further information on the documentation required for imports, please refer to the "Required Documents".
The temporarily imported boat must be placed in a customs warehouse of type E (authorized Marina).

Documents needed

Customs declaration, which can be created only by an authorized Croatian forwarder. In the system, we will send you to our list of Austrian agents in Croatia. For the creation of the import customs declaration requires the boat owner a Croatian OIB number (personal identification number) that is requested from the Croatian Tax Authority. For details on obtaining a OIB number, please see our attached sheet.
Copy of the passport of the owner or the person to whom the ownership rights were transferred.
Deletion detection of the boat from the previous register.
"Registration certificate".
Proof of ownership in leased boats: confirmation of the lessor, that the boat may be imported into Croatia.
Billing (if any) and the owner's statement about the value of the boat. The statement should give the owner how old the boat is and as evidence of its value. In objective statements about the value of the Croatian Customs will accept this estimate. The Croatian customs however, it remains left to conduct its own valuation.
Proof of origin.

Note: In the coming days we will be the Croatian Customs shall provide a detailed list of the documents required and the procedure for imports.
With boats that were longer than 18 or 24 months, temporarily imported in Croatia (and thus actually already should have been carried out), it is not "very strict" and circumvent the owners - if they fulfill all the above conditions - the definitive import allow to Croatia.

Croatia's EU accession
From the accession of Croatia to the EU (expected 07/01/2013) can most likely all boats that are older than 8 years (Initial), excluding VAT. introduced to Croatia (here you will probably take over the Slovenian model). It is therefore only the import duty (with EU proof of origin: 0%, without EU proof of origin: the valid duty at this time) to be paid.
This one, however, has still no official guidelines. We will pursue this issue and keep you informed.
It is assumed that the Croatian customs and tax authorities will carry out before Croatia's EU accession extensive checks of the marinas to ensure that the boats were either definitively imported into Croatia or temporary importation, the deadlines (18 and 24 months) have not exceeded.

Note:
Theoretically, you can use the boat, which was introduced temporarily to Croatia for a day leaving Croatian territorial waters and in the re-entry into Croatia the temporary import and thus the 18 - Enable or 24-month period again.

Charter operations before and after the EU accession of Croatia
The charter business has so far been carried out only with boats that were definitely introduced to Croatia and duty, registered in Croatia and eingeflaggt. It also had a trading company established in Croatia.
Despite the fact that Croatia joins the EU, Austria is likely to impose transitional periods for workers and services from Croatia. On the basis of reciprocity Croatia will adopt the same transition periods for Austrian workers and services. Consequently, it does not come automatically with the EU's accession to workers and free movement of services between Austria and Croatia. The relevant guidelines are not yet fully worked out. We will keep you up to date at any rate, what will change in this regard for charter activities of boats in Croatia.

EU taxed boats
Boat owners whose boats were already taxed in the EU, with their boats indefinitely after Croatia's EU accession staying in Croatian territorial waters. The Croatian authorities are planning this controls in which evidence must be presented that the taxation has already been performed.
Boats from countries with which Croatia will have to join the EU are no free trade agreement, may be imported temporarily definitely (Marina with customs control) or.
We hope to have helped you with this information first frame and will keep you up to date.


Kind regards

Mag Roman Rauch
, the Austrian economy delegates in Zagreb

"

 

[d4raffy]

More SeaHelp text ...

Croatian Roulette
Sunday 20th, January 2013

The die is cast. After a meeting with representatives of the Croatian government was weather-related canceled at short notice due to heavy snowfall in the area of ​​Zagreb, the Croatian SeaHelp-Agent Marko Orlić has yet had an opportunity with a responsible employee of the Treasury, the key question about the topics of import VAT and customs regarding to clarify to the forthcoming EU accession of Croatia. The result in terms of vessels at the time of EU accession over eight years, is rather unsatisfactory and can probably be best described by the term "Croatian Roulette".

The facts that apply to SeaHelp information as secured: owners whose vessels are in Croatia and at the time of EU accession are younger than eight years, in the period up to 05.31.2013 the opportunity to re-flag the ships to Croatia. The process will cost 5% import VAT and 1.7% tariff, calculated from the value of the Eurotax Schwacke list 2013th Then there are the so-called administrative costs such as fees, transportation costs, interpreting services, certifications, etc. as well as a compensation for the services of SeaHelp in connection with the re-flagging. The boat is then at the time of EU accession on 07/01/2013 official tax purposes membership merchandise and is EU-taxed. Important for all owners, however, is the fact that in addition to the import sales tax always also the subject of duty needs to be considered separately.

Owners who have their ships at the time of EU accession over eight years old, have the opportunity to go also to the above path and their ship for a total of 6.7% (5% import VAT and customs 1.7%) of the value change of flag. So they are on the safe side, because what they regard to customs and import sales tax after 01.07.2013 are, is, not currently regulated and is probably only after 05.31.2013, if the period of cheap imports has expired, caught in a binding legal text. There are several possibilities: First, can take on Croatia, the EU directive and put the boat tax. The second option would require the usual Croatia for all goods import tax of 25 percent and an additional duty, which can move in a range of 0% to 8%. Generally the boat is regulated in the so-called Code: After accounting for boats that are longer than 12 meters 1.7% duty, longer boats are generally duty free. Whether this provision also applies to Croatia, or whether in the Act exemptions were agreed, it could bring up to now nothing in experience. As part of the interview, the Croatian customs office signaled though that one assumes that this rule is applied to the accession date so it is not yet legally binding, however.

Seahelp wanted to know if the worst scenario is realistic for the owner and has asked both the relevant EU Commission and the Croatian customs office and with two points led a lively correspondence. As a result, said the European Commission: The EU Directive provides that the owner of the vessels that are required to become members over 8 years old, are exempt from import VAT. Croatia who does not mind, but the EU has not effectively handle, Croatia prohibit this behavior. The situation is similar also in the amount of the duty. The Croatian customs office is likewise assumed that the older ships are exempt from import VAT may be understandable reasons, however, only binding rule as to when a similar provision was passed in Parliament and has obtained legal validity. Also, the Chamber, the Chamber of Commerce Austria speculates that the budget for the master solution is adopted.

More SeaHelp text ....

The fact is, owners play "Croatian roulette" if they wait. Legally binding, in writing, there is no statement that after 1.7.2013 with boats, over eight years, tax-and-release really happened. The fact is simply that the duty after 5/31/2013 again is 8%, on which 1.7. happens, can not be communicated authentic. In this case, it is the owner's own devices, whatever decision he makes. SeaHelp is and may make a recommendation on this issue, the arguments for and against use of the discounted offer are known.

Two points are valid but already as certain: Whoever wants to can be immediately ship back flags after 1.7.2013 again. In addition to the EU accession, the skippers at Sun hated vignette from the table, because that definitely is not in accordance with European law.

SeaHelp itself continues to offer all owners support in the re-flagging to this. Deadline of the record date, to perform 5/31/2013 For this you have an e-mail with registration and boat insurance policy to send SeaHelp (steuer@sea-help.eu) or fax the documents to 0043 6,133,627,290th Owners will receive an offer, you can decide whether to take the SeaHelp services for rebranding in Croatia to complete. SeaHelp be reached for a personal consultation on the boat owners in Dusseldorf in Hall 11, Stand H 13.2 during the fair. Information which boats Leaders Jürgen Strassburger, a has been published in the water sports scene recognized expert on customs and tax law on the subject, can be found here:

http://www.boote-magazin.de/aktuell/news/kroatien-einfuhr-zum-schnaeppchenpreis/a41653.html

 

[d4raffy]

What do we make of this ?? ...... "Important: the proof of origin must not be older than four months" ??

In addition to the 5% VAT. is also a reduced rate of 1.7% to 2.2% (for boats without proof of EU origin by EUR 1 or origin declaration of approved exporter) to pay. In the coming days is to amend the Customs Tariff be announced, due to which this reduced rate of duty will be applied. May be submitted for boats, for which a European certificate of origin (EUR 1 or origin declaration of approved exporter), no import duty is payable. Important: the proof of origin must not be older than four months.

 

[Baggywrinkle]

Good to see that the EU Commission is not pleased with the 5% window - even if they can't do anything about it. This will save owners of newer boats a fair amount of money and the EU commission have said they're going to watch Croatia very closely during accession.

As for older boats, In Germany as well as through SeaHelp in Austria there is now alot of pressure being brought to bear on Croatia to honour the 8 year rule.

The text from the SeaHelp article in German makes it a little clearer (for those who can speak German better than google) ....

Seahelp wollte wissen, ob das für die Eigner schlimmste Szenario realistisch ist und hat sich sowohl bei der zuständigen EU-Kommission als auch beim kroatischen Hauptzollamt erkundigt und mit beiden Stellen einen regen Schriftwechsel geführt. Im Ergebnis antwortete die EU-Kommission: Die EU-Richtlinie sieht vor, dass die Eigner der Schiffe, die zum Beitrittszeitpunkt älter sind als 8 Jahre, von der Einfuhrumsatzsteuer befreit sind. Hält sich Kroatien nicht daran, hat die EU aber keine effektive Handhabe, Kroatien dieses Verhalten zu untersagen. Ähnlich sieht es auch bei der Höhe des Zolls aus. Das kroatische Hauptzollamt geht zwar ebenfalls davon aus, dass die älteren Schiffe von der Einfuhr-Umsatzsteuer befreit sind, kann sich aus verständlichen Gründen jedoch erst rechtsverbindlich dazu äußern, wenn eine entsprechende Regelung im Parlament verabschiedet wurde und Rechtsgültigkeit erlangt hat. Auch die WKÖ, die Wirtschaftskammer Österreich, mutmaßt, dass die für Eigner günstige Lösung verabschiedet wird.

In summary....

The EU-Commission thinks that the EU rules apply and mean 8 year and older boats are free from VAT but the EU commission is powerless to act. (presumably until the 01.07.2013.)
Croatian authorities don't agree, however the Croatian Customs believe the 8 year and older boats are exempt from import duty and VAT.
None of it is legally binding currently as the Croatians haven't written the EU rules into law yet.
The Austrian Chamber of Commerce believes that in the end the 8 year rule will be honoured.

I think the Croatians are playing a clever game, those of nervous disposition will also probably go for the tax window even though the boats are older than 8 years. Croatia must know they will end up fighting in the EU courts if they ignore the EU VAT Directive, owners may end up getting unfairly taxed and have to fight to get the tax or their boats back.

Personally I believe they will clarify the situation once the 31.05.2013 window is past in order to maximise revenue from those that are not prepared to take the risk, and that they will comply with the EU rules in the end.

The ADAC in Germany is advising people to sit tight until everything is clarified. Stating ...

Nach der Richtlinie 92/111/EWG des Rates vom 14. Dezember 1992, der sogenannten „Besenrichtlinie“, die am 1. Januar 1993 in Kraft trat, wurde bestimmt, dass für Wasserfahrzeuge, die vor dem 1. Januar 1985 in Betrieb genommen wurden, die Versteuerung grundsätzlich vorauszusetzen sei. In Staaten, die der EU erst später beigetreten sind, galten für die Steuerfreiheit von Altfahrzeugen der EU-Eintrittstermin abzüglich 8 Jahre.

The date used to determine tax-free older vehicles in Countries which join the EU later (than 1993) will be the date of entry minus 8 years.

Here's hoping........

 

[Baggywrinkle]

RYA response to e-mail......

Dear Mr XXXX
*
We have been informed (by the Croatian Ministry of Maritime Affairs, Transport and Infrastructure, Directorate for Maritime and Inland Navigation via the Foreign and Commonwealth Office), that, as yet, the Croatian Government has not yet adopted a definitive position on this issue.* They have informed us that a coordination body (comprising relevant line ministries) has been working together to produce a plan for amendments that will need to be made to existing legislation to recognise the change in status on 1 July 2013 and deal with issues such as the one that you are asking about.* This is currently under legislative procedure and the Ministry expect the new legislative framework to be agreed soon.* They promise to then provide information with guidelines for EU boat owners on their website http://www.mppi.hr/default.aspx?id=690.
*
As the legislation is not yet in place, we are unable to provide information on the actions owners of UK flagged boats which are not EU tax paid, should be taking to ensure that they have an EU VAT paid boat when Croatia accedes to the EU. However we are in correspondence with the Croatian Ministry of Maritime Affairs, Transport and Infrastructure, Directorate for Maritime and Inland Navigation and as soon as we have further information it will be added to the Croatia (member’s only) page on the RYA web-site http://www.rya.org.uk/infoadvice/boatingabroad/countries/Pages/croatia.aspx. *
*
Kind regards
*
Jo Moulton
Administrator, Legal Department
Royal Yachting Association

 

[jimbaerselman]

Croatia has published official guidance on this matter on their web site.

See the News item and link on my home page - www.jimbsail.info

 

[Baggywrinkle]

Croatia has published official guidance on this matter on their web site.

See the News item and link on my home page - www.jimbsail.info

Unfortunately, what they have so far failed to clarify is how or if they will comply with the EU VAT Directive, Article 420, by allowing boats in service 8 years before the date of accession to benefit from "VAT deemed paid" status.

It's not in their interests to clarify this beforehand as they want to recruit as many boats as possible to the scheme you linked to. For boats under 8 years old it's a reasonable import deal, for boats over 8 years old, depending on value, it's a bit of a minefield as with so many hidden and incidental costs that it could be cheaper to pay 20% in Italy or Slovenia without all the hassle. It may also turn out that the EU forces the VAT directive and it could cost nothing more than frayed nerves.

Any information you can dig up on the 8 year rule would be most useful.

 

[d4raffy]

OK .. while we wait for the 8 year rule to clarify ... as my boat is 7 years old ... huummpf :-( ... back to the VAT process....

Anybody got anything more on these EUR1 forms ? How to get them retrospectively ? and info on this "Important: the proof of origin must not be older than four months" malarky ?? any more detailed cost break downs ? restrictions on bouncing in and off the Croatian register ? ... competitive agency costs ?