rigpigpaul
Well-Known Member
I am tracking a charter boat to buy in Greece. I have been quoted 10% VAT by a broker. I hope this is true. What is the true VAT due on a 65,000 euro boat.
Thanks in anticipation
RPP
Thanks in anticipation
RPP
Ex-charter boat Greece percentage VAT
- Thread starter rigpigpaul
- Start date
paulingreece
Well-Known Member
If its a Greek registered boat then vat at 23% is payable, but is better to ask a Greek accountant who will give a definitive answer, some Greek charter fleets have vat breaks and other types of incentives to sell older boats and renew, so you are better of asking for proper advice by someone who is upto date with the current rules and changes. Try pm PLEAIS, he will probaly know the answer.
Tranona
Well-Known Member
No. You have to pay the normal VAT amount (think it is 23% at present). The only way you can reduce VAT is to buy a new charter boat on a 6 year contract where you pay 50% and when it is transferred to you at the end of the contract you pay VAT on the original contract price. That means your VAT is (say) 11.5% of the total new cost of the boat - the management company who put up the other 50% does not pay VAT as charter boats are zero rated.
If you are buying an existing charter boat and removing it from the charter register the charter company must charge you VAT at the normal rate on the sales price - so about 15k euros on a 65k boat. If you are keeping it as a charter boat with a licence, you can reclaim the VAT, or more likely get the boat transferred to another management company.
If the boat is already owned by a private individual, he should have already paid VAT and there will be no VAT when you buy it - but you need to have the evidence that it has been paid.
The correct documentation for an ex charter boat is a certificate from the registrar that it has been removed from the charter register and transferred to a private owner, a Bill of Sale, stamped by the Port Police and the registrar and a commercial invoice from the charter management company showing VAT.
Not all boats will have all of this, particularly those that came off the charter register pre-2002 when the rules changed, but any recent boat should.
If you are buying an existing charter boat and removing it from the charter register the charter company must charge you VAT at the normal rate on the sales price - so about 15k euros on a 65k boat. If you are keeping it as a charter boat with a licence, you can reclaim the VAT, or more likely get the boat transferred to another management company.
If the boat is already owned by a private individual, he should have already paid VAT and there will be no VAT when you buy it - but you need to have the evidence that it has been paid.
The correct documentation for an ex charter boat is a certificate from the registrar that it has been removed from the charter register and transferred to a private owner, a Bill of Sale, stamped by the Port Police and the registrar and a commercial invoice from the charter management company showing VAT.
Not all boats will have all of this, particularly those that came off the charter register pre-2002 when the rules changed, but any recent boat should.
Oliveoyl
Well-Known Member
VAT breaks?
No break possible on the VAT rate - 23% end of story. However, VAT is applied on sales price, or "written down value of boat". Apparently there are "informal" rules as to % applied to original price. This is where an accountant may come in handy.
No break possible on the VAT rate - 23% end of story. However, VAT is applied on sales price, or "written down value of boat". Apparently there are "informal" rules as to % applied to original price. This is where an accountant may come in handy.
Shooting Star
New Member
VAT on ex charter boat
My experience was that we paid VAT on the full purchase price of the boat despite the broker telling us that he could do a deal based on 50% of the price. And the minute it changed from the Greek register to UK the marina fees trebled as it was based in a municipal marina near Athens
My experience was that we paid VAT on the full purchase price of the boat despite the broker telling us that he could do a deal based on 50% of the price. And the minute it changed from the Greek register to UK the marina fees trebled as it was based in a municipal marina near Athens
jimbaerselman
Well-Known Member
x 3 sounds very nasty. Surely, most unlikely to be caused just by change to a UK register?
Most charter companies (big brokers, too) have annual contracts for a number of berths - volume deals plus yearly rates. Change of owner, different deal. Was your new rate also for an annual contract? for several berths?
Last edited:
Tranona
Well-Known Member
Almost certainly because the previous low rates were the charter boat rates - so the increase was a consequence of no longer being a charter boat rather than the change of registry. Same happened to me. For the last year chartering the berth fee in Gouvia was about 1000 euros but the next year as a charter boat was about 2300 - but I did have th choice of a better berth.
Melody
Well-Known Member
I have been responsible for collecting harbour dues for our local port authority and can tell you that there are two rates. Greek flagged professional (ie: commercial) yachts pay the lower rate for entering and mooring in all Greek harbours and marinas. Any privately owned yacht, whatever its flag, will pay the higher rate, which is a lot more. Non Greek-flagged commercial boats also pay the higher rate.
