Croatia EU VAT - New Advice!?

Hi Fran!

I was last couple of days on Boat show in Zagreb and reply is delayed.

We in Maritimus Consultant are not gridy. We have enough work and we don't need to cheat our customers as some other doing (remember "Customs certified court assessor" which must make valuation survey). Honest approach to the clients and knowledge in combination with hard work brought us on leading position in Adriatic area. On short run we loose bit of money but on long run we are the winners.

As any other respectable flag Croatian is requesting entry survey. Only FOC (flags of convenience) are registering all including non existing ships. Survey is mainly based to safety equipment and boat seaworthiness.

Each life raft have service period (1-2 years). Inspector will check that certificate is still valid same as for fire fighting extinguishers and pyrotechnics. It will be checked that boat have minimum required equipment which list will try copy/paste in another post.

There is clasiffications of sailing areas from 1-6. Sailing area in Croatian waters is 3. Bigger number, bigger sailing area , more equipment.

Third party liability insurance should be issued by insurance company which is registered in Croatia. It could be foreign but with legal branch office in Croatia (Alianz, Generali, Grawe, Basler.. are present in Croatia).

I should warn forum members about one more danger. Realized that some companies which are offering boat import are not existing. Hard to beleive but it is fact. I will not list them but check if your consultant/agent have active company. Below is link to Court Register of all companies in Croatia. Enter just name in place after "Ime/naziv" (Name) and press bottom "Pretraži". If your agent is listed below column "Status" as "Aktivan" (Active) it is good sign. You are free to try with Maritimus Consultant :confused:. You can check balance sheet but this is bit more complicated.

https://sudreg.pravosudje.hr/registar/f?p=150:1:4003487390594918:::::

Regards Sinisa
www.maritimus-consultant.hr
maritimus.consultant@st.t-com.hr
 
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List of safety equipment for navigating area 3 (Croatian teritorial waters).

Yachts of the navigation area IIa and III shall
be equipped as follows:
.1 Inflatable liferaft or liferafts, of such aggregate capacity to accommodate the total number of persons on yacht, the ISO:9650-1, pack 2 requirements. In the case that the yacht is engaged on voyages exclusively from 1st of April till 31st of October it is allowed that the yacht is equipped with inflatable liferafts having such aggregate capacity to accommodate not less than 60 % of total number of persons
on board, and in addition to that with a tender boat having capacity to accommodate the rest of the number of total persons of board;

.2 lifebuoy with buoyant lifeline and igniting light;

.3 Lifejackets for every person on board yacht;

.4 Lifejackets suitable for children (for every child on board yacht);

.5 6 pcs hand flares;

.6 2 pcs buoyant smoke signals;

.7 2 pcs thermal protective aids being SOLAStype;

.8 User instruction posters, on or in the vicinity of the life-saving appliances;

.9 One copy of the life saving signals;

.10 Two safety belts (sailing yachts only).

Other reqirements in connection with sailing area

.1 Yachts shall be fitted at least with navigational aids as given in Table 5.3.3-2.

Navigational area
Navigational aid
I Ia, II IIa, III IV
1. Magnetic compass 1) * 1 1 1 1
2. Nautical charts 1 1 1 1
3. Nautical publications 1 1 1 -
4. Plotting triangles 2 2 2 -
5. Pair of compasses 1 1 1 -
6. Prismatic binocular 2 1 1 1
7. Standard marine communication
phrases (SMCP) 1 1 1 1
8. GNSS receiver 1 1 1 -
9. Radar reflector 1 1 1 1
10. Signalling light 1 1 1 1
11. International code of signals 1 1 - -
12. Barometer 1 1 1 1
13. Rules for prev. collisions at sea 1 1 1 1
14. Echo sounding devices 1 1 - -

Numbers in rows are pcs required for sailing area. Unfortunately now i can see that table is not coppied.

Navigationg areas are as following
Navigation area I – international unrestricted navigation in all seas and waters accessible from the sea.

Navigation area Ia – international unrestricted navigation in all seas and waters accessible from the sea, with maximum allowable
distance from than land not more than 20 Nm.

Navigational area II – international navigation in the Adriatic sea.

Navigation area IIa – international navigation in the Adriatic sea, with maximum allowable distance from than land not
more than 12 Nm.

Navigation area III – national sea water navigation and navigation in territorial sea of the Republic of Croatia and waters
accessible from the sea.

Navigation area IV – navigation in sheltered waters, such as ports, bays, river mouths and lakes, such as, but not limited to:
Bay of Lim, Bay of Raša, Bay of Kaštela, Bay of Klek-Neum, Lake of Prokljan (including mouths of Krka River to the Cape
of Jadrija), Rijeka Dubrovačka and River Neretva
 
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Error

There is clasiffications of sailing areas from 1-6. Sailing area in Croatian waters is 3. Bigger number, bigger sailing area , more equipment.

should be

There is clasiffications of sailing areas from 1-6. Sailing area in Croatian waters is 3. Smaller number, bigger sailing area , more equipment.

Thks to forum reader.
 
Long time since my last visit!

It seems that import is going quite smooth. All boats with reasonable value are accepted by custom without extra questions or inspections. I have learned that some clients of our "Customs certified court assessor" have problem because his valuations are rejected. Once again just honest statement of boat value is required. Don't waste your money on so called "Customs certified court assessors".

Import in Croatia after July 1st is hot issue. I am quite sure that this will happen. Owners of boats older than 8 years will have free import. As you know no one is giving someting for noting and there must be catch 22. I don't have proof but boats imported this way will not have status VAT paid because VAT definetly will not be paid. As consequence question is if this boats will be able to change flag to other European without paying VAT? Info which is circulating is that only boats with EU country flag will have free import.

Regards Sinisa
www.maritimus-consultant.hr
maritimus.consultant@st.t-com.hr
 
Maritimus said:
Long time since my last visit!

It seems that import is going quite smooth. All boats with reasonable value are accepted by custom without extra questions or inspections. I have learned that some clients of our "Customs certified court assessor" have problem because his valuations are rejected. Once again just honest statement of boat value is required. Don't waste your money on so called "Customs certified court assessors".

Import in Croatia after July 1st is hot issue. I am quite sure that this will happen. Owners of boats older than 8 years will have free import. As you know no one is giving someting for noting and there must be catch 22. I don't have proof but boats imported this way will not have status VAT paid because VAT definetly will not be paid. As consequence question is if this boats will be able to change flag to other European without paying VAT? Info which is circulating is that only boats with EU country flag will have free import.

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

My understanding is that to qualify for free import (VAT deemed payed) a boat must be .....

EU flagged - Evidence: Boats Registration
Property of an EU resident - Evidence: Boats Registration
In service before 01.07.2005 - Evidence:Builders Certificate, bill of sale, marina invoices or other docs confirming age and in service status.
In Croatia on 01.07.2013 - Evidence: Croatian customs documentation, Marina Invoices.
Under temporary 18 month VAT free import to Croatia - Evidence: Croatian customs documentation

As long as these conditions are fulfilled there will be no VAT charged.

I'm hoping the docs above are acceptable, they should also be acceptable in all other EU countries so although there is no VAT reciept, the rules and the paperwork should be enough. I'll keep checking this thread in case you uncover any nasty surprises. Thanks again.
 
Anybody started the process yet ? ... run into the 'Apostille Certificate' requirements yet ?
who / whom (UK) has anybody used ?
 
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Yes. My client did. Have look comment.

Quote

I have signed the document and will get it notarised and then to FCO and their apostille. They charge £30 per document

Unquote

We suggest to make apostille only on one copy and more coppies your agent can notarize in Croatiua where cost is cca 7 Euro per document.

Regards Sinisa
www.maritimus-consultant.hr
maritimus.consultant@st.t-com.hr
 
Several days i was not on forum. We have collected more than 60 boats and still comming. We have first experiences. We see first problem to collect all necessary documents from Owners and notarize them. Second problem is disloyal competition. Two days back i had Norwegean client who went in notary office and was shocked that notarizing 15 documents cost 1200 Kn what is 157 Euros. He was screaming that this is robery and specially because he do not need them. On marina reception he weas intercepted by another agent who asked him 500 euro for import and told him that notarized coppies are not required. Agent will stamp coppies with his stamp and confirm that is as original. Hard to beleive but is true. I know from other client that in Scandinavia only one copy cost 50 Euro. Our client made only one notarized copy and rest we will certify because is cheaper in Croatia. Told Norwegean guy to go to other agent. We are really making one extra certified copy and this cost client 50 euro extra but this way they are save. We keep certified copy in our file in case that document will be lost. Now is mess in institutions and loosing documents definetely will happen. We are on safe side because we are able to make new set of certified documents without delays. This way our customers are protected for really little money.
Next problem is quite serious. Custom is rejecting value declarations and increasing boat values. Two days back two of my boats were rejected. On sailing boat price went up 20000 Euro and on big trawler 100000 euro. So my strong advice. Stick to Eurortax even if price is not realistic.
Next problem are boats without listing in Eurotax. For valuation of this boats there are diagrams inside. One curve is +10% and other -15%. Custom is calculating only upper curve +10% what can increase boat value 10-20%.

Regards Sinisa
www.maritimus-consultant.hr
maritimus.consultant@st.t-com.hr
 
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UK REGISTERED BOATS.

I am undergoing the change of flag procedure. You would think I was registering the QE2.

Anyway, one thing to note is that as soon as you de register your boat from the SSR your UK insurance is cancelled I have taken out VERY expensive Croatian insurance. Apparently the rules dictate that UK companies cannot insure foreign flagged boats. I am sure that there is more to it than that but that is the bottom line.
 
tgpt21 said:
UK REGISTERED BOATS.

I am undergoing the change of flag procedure. You would think I was registering the QE2.

Anyway, one thing to note is that as soon as you de register your boat from the SSR your UK insurance is cancelled I have taken out VERY expensive Croatian insurance. Apparently the rules dictate that UK companies cannot insure foreign flagged boats. I am sure that there is more to it than that but that is the bottom line.
Click to expand...

Woulds be very surprised if that were the case. Have never been asked to state whether the boat is registered, or where. Registration in the UK is not compulsory and the SSR has no status other than a declaration that it is considered a UK vessel.

On the other hand it may well be a requirement of Croatian registration that you insure in Croatia - but I don't know for sure.
 
Tranona said:
On the other hand it may well be a requirement of Croatian registration that you insure in Croatia - but I don't know for sure.
Click to expand...

Yes it is and my insurance company has confirmed that. According to them, owners may have to arrange a split insurance with the hull still being insured under the normal UK policy but the third party P & I element being covered by a Croatian insurance co and I'm guessing that's very expensive. Just another cost to add to the costs of actually paying 5% VAT. If the Croatian authorities are insisting on aggressively high valuations on boats for the VAT calculation as well, all these oncosts are making me wonder whether it isn't worthwile looking at paying VAT in another country altogether but it all depends on the valuation of course.
I do wonder why the Italian and Slovenian customs aren't 'competing' for all this VAT business. If the Italian customs let it be known that they were being lenient over valuations and there were no major oncosts involved, it actually might attract people like me to pay their VAT in Italy even though it would be at a much higher % rate of course
 
Maritimus said:
If you don't know there is someome who know :-). Compulsory is to have third party liability covered by insurance which is operating in Croatia. This is peanut. The highest premium is 75 Euro.
Click to expand...
OK thats good!
 
Hi Mike!

In previous post you can see that thisr party liability is peanut. Now about Italian and Slovenian ruler. You have overlooked basic thing. They are in Europe and we are not and we can do what we want up to 01.07. You think that Italian and Slovenian government like that we are taking their ciustom and VAT money. Lucke we, they can only gry and this made me happy. First time that i am supporting decisions of my government. Usually i am against (tax rise etc..)

You are right that Croatian authorities are insisting on aggressively high valuations on boats for the VAT calculation. You are aware that you can pay VAT in UK as well and that registering under Croatian flag is volunteerely. Please dont tell me that even if boat is valuated bit higher still is not extremely good opportunity.

Regards Sinisa
www.maritimus-consultant.hr
maritimus.consultant@st.t-com.hr
 
Maritimus said:
You are right that Croatian authorities are insisting on aggressively high valuations on boats for the VAT calculation. You are aware that you can pay VAT in UK as well and that registering under Croatian flag is volunteerely. Please dont tell me that even if boat is valuated bit higher still is not extremely good opportunity.
Click to expand...
Actually, Sinisa, I think you are wrong. Surely to pay VAT in the UK I would have to move my boat to the UK in order to create a VATable event? As regard Croatian VAT, yes of course it's a good opportunity but only providing the authorities don't get too greedy when valuing boats
 
Unfortunately they do. I am arguing and sometimes i win, sometimes i loose. If i have good argument, relatively fresh invoice they are reasonable. I don't think that is problem in Croatian government. After entering in EU lot of trade will become domestic trade and actual number of custom officers will not be required. Thry are afraid that internal control will accuse them that they did not valuate boat correct and that this can be excuse for sacking them.

Regards Sinisa
www.maritimus-consultant.hr
maritimus.consultant@st.t-com.hr
 
Interested in the outcome ?
I called my insurance company (Pantaenius), informed them of the change of flag - they did not mention anything in restrictions or changes to my policy ... ?
 
What they shoultd tell you. No you don't need our insurance. To make things clear please note following. Kasko insurance (volunteary insurance) is owners choice. There are some restrictions on south mediterranean countries but you can fly any flag and sail wherever you want as log as your are inside sailing area stated in insurance policy. In Croatia third party liability insurance is mandatory for boats under Croatian flag same as for car with croatian tag plate. It is mandatory as well that insurance is covered by insurance company which is operating under Croatian law what is i will say natural. My be tomorrow when Croatia will enter EU rules will change but at the moment Croatia is not jet member .


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