EU to US VAT?

[ComeSailAway]

Hi there,

New to the forum...I've done a search and don't see anything related to this specific topic, but please steer me there if this has been answered elsewhere. Here is what I've been told by a broker:

" If a buyer is a company with an european VAT number or if the boat will be exported outside EU, then VAT will not be applicable. If the buyer is a private person, non European citizen, then the boat can also be sold free of VAT."

Is this information correct? We are looking to purchase a boat in Europe and bring it to the Caribbean in November via the ARC.

Thanks in advance!

Cheers

 

[lustyd]

Are you buying new or used? You can specify that you’re buying for export but there are restrictions placed on usage prior to export.
If buying used then you can do the transaction in international waters I believe is the usual method. Then you use temporary import in EU for up to 18 months to avoid VAT. TI can be reset by leaving the EU briefly.

 

[Tranona]

Basically correct as the EU (and UK) have a scheme generally called "Sailaway" that allows the export of boats VAT free for private purchasers. However there are stringent conditions and really only possible for new boats. The schemes are operated by boat builders and their agents who are responsible for the VAT payment until the export conditions are met. It is quite normal for the buyer to be asked for either a deposit or aa bank guarantee to cover that liability.

Used boats are normally not subject to VAT at point of sale (because they are owned by private individuals) so would not normally be included in such a scheme, although there is a possibility that a used boat (for example a demonstrator or charter boat) could be owned and then sold by a VAT registered trader and be sold VAT free to a non resident.