Croatia EU VAT - New Advice!?

[Baggywrinkle]

SeaHelp have posted a story offering a customs declaration service for boats in Croatia over 8 years old.

Looks like all older boats will pay 1.7% import duty if under 12m and 0% if over - VAT will not be levied. Paperwork will then be issued that they are deemed EU VAT paid.

Details are here in German, no sign of the story in English yet ...

http://www.sea-help.eu/SeaMagazine/de/54671

Put the URL through google translate and it is readable if a bit odd.

 

[swe]

Trying to wake up this thread. Its been some time since we heard any news & advice regarding Croatia entering EU and VAT. For boats older than 8 years, Is the deadline still 1 April 2014?

 

[Windlass100]

Trying to wake up this thread. Its been some time since we heard any news & advice regarding Croatia entering EU and VAT. For boats older than 8 years, Is the deadline still 1 April 2014?

Yes!

 

[BrianH]

Trying to wake up this thread. Its been some time since we heard any news & advice regarding Croatia entering EU and VAT. For boats older than 8 years, Is the deadline still 1 April 2014?

Where is Baggywrinkle when you need him? He hasn't posted since the summer and was always an informed and prolific poster on this subject.

I do not know what is the situation for Croatian based yachts but I believe visitors can be checked for their VAT status during this accession period. One of our own forumites, who keeps his yacht in Croatia, did report that police boats were checking all documentation, including VAT status, in the Split area during July.

I deliberately didn't sail to Croatia this year due to being unable to prove my UK-registered boat's EU presence in 1992, required for 'deemed VAT Paid' status by a pre-1985 construction year. Friends from my Italian marina (German, Italian and Belgian registered) did though after EU accession (1st July) and reported they were not checked for VAT - but that was only in Istria. They were still charged the full 12 month Vignette fees despite the published end of that for EU-registered vessels from 1st January, 2014. That was, of course, plus the Sojourn tax, light and security fees, which will remain for all.

 

[Deleted User YDKXO]

I do not know what is the situation for Croatian based yachts but I believe visitors can be checked for their VAT status during this accession period. One of our own forumites, who keeps his yacht in Croatia, did report that police boats were checking all documentation, including VAT status, in the Split area during July.

We spent several weeks sailing around the Split area in July and August and nobody checked our VAT documentation and we didn't see or hear of anyone else being checked either. Yes we have been checked once in the past prior to accession by a police boat with nothing better to do and the only things they asked for were the vignette crew list of course, passports, reg document and insurance. I'm not even sure that the police would be qualified to check VAT documentation. Yes sure they might be able to recognise a Croatian VAT certificate but are they really qualified to check the authenticity of a VAT invoice from another EU country?

 

[BrianH]

We spent several weeks sailing around the Split area in July and August and nobody checked our VAT documentation and we didn't see or hear of anyone else being checked either. Yes we have been checked once in the past prior to accession by a police boat with nothing better to do and the only things they asked for were the vignette crew list of course, passports, reg document and insurance.

It was this post by RupertW that reported he had witnessed the checks: http://www.ybw.com/forums/showthread.php?373788-Croatia-any-changes&p=4383039&highlight=#post4383039

However, no one from my marina who sailed across the Adriatic reported being checked in northern Croatia.

I'm not even sure that the police would be qualified to check VAT documentation. Yes sure they might be able to recognise a Croatian VAT certificate but are they really qualified to check the authenticity of a VAT invoice from another EU country?

Whatever their qualifications they are empowered to do so. For a few years now any EU state can check any EU-registered ship for its VAT status. From the RYA guidelines for buying a second-hand yacht:

"The completion of the Single Financial Market on 1 st January 1993 also saw the introduction of an amnesty for any yacht in the EU area built on or before 31st December 1984. Therefore unless a yacht owner in the EU is able to prove either that the yacht is VAT paid or that it was built before 31st December 1984 and was in EU waters on 31/12/92 - 1/1/93, he is liable to pay VAT on the current value of the yacht, and there are likely to be spot checks in any EU State on any yacht at any time."​

 

[Deleted User YDKXO]

It was this post by RupertW that reported he had witnessed the checks: http://www.ybw.com/forums/showthread.php?373788-Croatia-any-changes&p=4383039&highlight=#post4383039

The Gates of Split are right in our backyard cruising area and I've never seen a patrol boat there. Not wishing to contradict RupertW but how does he know this boat was checking VAT documents as well as the normal vignette stuff?

For a few years now any EU state can check any EU-registered ship for its VAT status.

I'm not arguing with that. What I'm saying is that it is usually Customs who deal with tax and duty matters, not Police, which is why I was questioning whether a Croatian policeman would have the knowledge to check VAT invoices and certificates

 

[RupertW]

The Gates of Split are right in our backyard cruising area and I've never seen a patrol boat there. Not wishing to contradict RupertW but how does he know this boat was checking VAT documents as well as the normal vignette stuff?


I'm not arguing with that. What I'm saying is that it is usually Customs who deal with tax and duty matters, not Police, which is why I was questioning whether a Croatian policeman would have the knowledge to check VAT invoices and certificates

As I said in the original post, I hadn't seen a patrol boat there before (no idea what service they worked for, Police, Customs or whatever), but they did specifically ask us to point out the VAT paid parts of our boat papers folder. I didn't see them again in August or September when we passed through the gates of Split again.

 

[Deleted User YDKXO]

As I said in the original post, I hadn't seen a patrol boat there before (no idea what service they worked for, Police, Customs or whatever), but they did specifically ask us to point out the VAT paid parts of our boat papers folder. I didn't see them again in August or September when we passed through the gates of Split again.

OK thats interesting. Are you VAT paid in Croatia this year or have you got an invoice for VAT paid in the EU elsewhere? Not trying to be nosy only trying to understand whether this was a cursory check or whether they knew what they were looking at. I paid VAT this year on my current boat so I have the necessary paperwork to prove that but I am thinking about changing to a boat which has had VAT paid in Italy so I was wondering how inquisitive they would be about another EU country VAT invoice

 

[RupertW]

OK thats interesting. Are you VAT paid in Croatia this year or have you got an invoice for VAT paid in the EU elsewhere? Not trying to be nosy only trying to understand whether this was a cursory check or whether they knew what they were looking at. I paid VAT this year on my current boat so I have the necessary paperwork to prove that but I am thinking about changing to a boat which has had VAT paid in Italy so I was wondering how inquisitive they would be about another EU country VAT invoice

Like you we paid VAT this year in Croatia (but stayed SSR registered as the Croatian registry was taking longer than the discount VAT process). As I didn't see them again, I wonder whether this was just a July thing, catching boats as they came out of Milna heading south.

And just when one headache goes, another starts as we are set up to move to Corfu next year and this new Greek tax thing has come in...so much simpler when we sailed in the UK all those years (and so much colder, wetter, marina based and murkier of course)

 

[Deleted User YDKXO]

And just when one headache goes, another starts as we are set up to move to Corfu next year and this new Greek tax thing has come in...so much simpler when we sailed in the UK all those years (and so much colder, wetter, marina based and murkier of course)

Yeah but its worth it

 

[swe]

Agree, sun in the Med is lovely!

However, VAT in Croatia was no good for us. Our boat was valued to the double amont of what we actually payed 3 years ago. So we are now considering to sponsor our home country with VAT.

Do any of you know what documentation we would need to transport the boat trough Europe (Koper to Kiel by truck) and pay VAT at the final destination in the Baltic?

 

[Deleted User YDKXO]

However, VAT in Croatia was no good for us. Our boat was valued to the double amont of what we actually payed 3 years ago. So we are now considering to sponsor our home country with VAT.

Do any of you know what documentation we would need to transport the boat trough Europe (Koper to Kiel by truck) and pay VAT at the final destination in the Baltic?

I don't understand the logic of that. If the boat was overvalued by a factor of 2, then the effective VAT rate would still only have been 10% instead of 5%, which is still substantially less than the 20% that most countries levy. In any case, you should have questioned the valuation. The 'book' valuation on my boat was excessively high to begin with but I arranged for a second valuation to be carried out by a qualified surveyor who valued it at the approximately the current market value and that was accepted by the Customs authorities. If you want to know about transport costs and required documentation, contact this company http://www.vandewetering.nl/en/boat-transport/

 

[jfm]

Agree, sun in the Med is lovely!

However, VAT in Croatia was no good for us. Our boat was valued to the double amont of what we actually payed 3 years ago. So we are now considering to sponsor our home country with VAT.

Do any of you know what documentation we would need to transport the boat trough Europe (Koper to Kiel by truck) and pay VAT at the final destination in the Baltic?

This is a complex question - the answer might be "you can't" but it depends on your circumstances. It would take ages for me to list out the answer for all possible circumstances, so can you explain your relevant circumstances first?

As a start, can you explain the basis upon which you already have the boat inside the EU (in Slovenia, right?) without VAT being paid/payable on it? That would help narrow the question down. Or is the boat currently lying non VAT-paid in Montenegro?

 

[Danny_Labrador]

Agree, sun in the Med is lovely!

However, VAT in Croatia was no good for us. Our boat was valued to the double amont of what we actually payed 3 years ago. So we are now considering to sponsor our home country with VAT.

Do any of you know what documentation we would need to transport the boat trough Europe (Koper to Kiel by truck) and pay VAT at the final destination in the Baltic?

There must be a way around this. We were seriously looking at a boat earlier on in the year and I did a lot of research - came up with the same issue as you - valuation of the boat was very high - they have a look-up book and then graphs so they can interpolate for age.

We told the broker that it was deal breaker for us and then three or fours weeks later it was offered to us VAT paid (with all the paperwork) for not much more then the original price. I don't know how its done but I do know its possible.

 

[Deleted User YDKXO]

We told the broker that it was deal breaker for us and then three or fours weeks later it was offered to us VAT paid (with all the paperwork) for not much more then the original price. I don't know how its done but I do know its possible.

As I said, you need a tame surveyor

 

[swe]

Sorry for a late reply, Christmas came in between

Also, a big thanks to all who have been writing on this thread.

I can understand the question. As many others, we heard about the 5% VAT in Croatia and planned accordingly. But after all costs was calculated the total cost was well over 10% based on bill of sales. We still decided to go ahead.

Really late in the process we were informed that the valuation of the boat should be based on "the catalogue" and not bill of sale, even though all paperwork was ok. All other EU-countries accept a proper bill of sales, plus valuation of depreciation. All of a sudden total cost of VAT in Croatia was almost 20% and additional costs for marinas etc. uncertain?!

At this point, we changed our decision to go to Croatia. For info we tried several times to convince the customs that the value in the catalogue was not correct market value and wanted to have a valuation done by a surveyor but we where told that it was impossible.

Hope this explains a bit. We, like most sailors are decent and not made of money. I realize Croatian "5%" VAT was good for some, but for us…

So now we have to do and plan the process all over again, Preferable where the outcome is known in advance.

We are therefore hoping for recommendations of own previous experience. Maybe to get in contact with a surveyor/valuator in for example Italy, Slovenia, Greece or Croatia?
We are also considering if the 8 year rule would be a realistic alternative during spring, unfortunately we think it is not possible for us to arrive in Croatia before 1 April.

 

[Deleted User YDKXO]

We are therefore hoping for recommendations of own previous experience. Maybe to get in contact with a surveyor/valuator in for example Italy, Slovenia, Greece or Croatia?
We are also considering if the 8 year rule would be a realistic alternative during spring, unfortunately we think it is not possible for us to arrive in Croatia before 1 April.

Send a PM (private message) to maritimus of this parish or contact him at his company http://www.maritimus-consultant.hr. In fact I see a reference on his home page to the 8yr rule. He handled my 5% VAT payment and arranged the surveyor and I was very happy with his service

 

[d4raffy]

Anybody doing this ? http://www.carina.hr/Carina/Jahte.aspx

 

[BrianH]

The ultimate paragraph of that document is foreboding:

"Given the fact that the ownership of the vessel and the flag the vessel files do not constitute the proof of the vessel's Community status, every vessel entering the EU customs territory may be subject to customs control either by Croatian customs or by any other Member State's customs authority. Therefore, EU residents should always have on board some kind of proof that the customs and/or VAT have been paid for the vessel in question in one of the Member States. The proof includes T2L document or original invoice, tax administration certificate, or other respective document proving the VAT has been paid."​

With my UK Part I registration and a builder's certificate of pre-1985 construction I have only half the proof needed for "deemed VAT-paid" status, missing is any document to prove my boat was in the EU in 1992, which was before my ownership. It is why I kept clear of Croatia during their accession year but I had thought such pedantry, that no other country could possibly invoke, would have passed for 2014. Now I cannot be sure about that.