More Spanish matriculation tax news

  • Thread starter Thread starter Deleted User YDKXO
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Blimey, hope you manage to pull something out of the hat. Even the certainty that it will backfire on the Spannish tax authorities, and they will collect less tax in the long run, doesn't help much once you've been clobbered for the dough. Keep us informed.
 
As you all know my school / charter boat has been pricincto and then released two days later. I understand with a case number for further investigation??? Some say I will not hear anything else some say I will eventualy get the bill and fine. Either way I am totaly confused.

My boat has full charter licenses but I didnt have the required 05 just like every other charter boat I know. Fact is nobody has ever asked for the 05 neither have I or the company I use to arrange my licenses been told that it is required. Personaly I spend far less than 183 days in Spain per year only about 15 so far this year and the vessel is less than 12m in length. So it would seem that I am being done for not having the 05 (Matriculation exemption cert) to state that Matriculation is not actualy required??? So you see my confusion I don't mind paying a fine for not having a document but I don't see why after that I should pay a tax that is not required due to myself not being a resident and the vessel being under 15m. I do pay a small amount of tax in Spain but this has been on a honisty basis on my part for work I do in the port not related to the charter boat such as tuition or skippering etc. my acountant only runs my books for two quarters of which the final quarter is only a couple of weeks. this can all be proven.

Anbody any further advice or a clearer understanding.

P.S

It seems to be crystal clear that as far as the authorities are concerned a Brit can not drive a Spanish flagged vessel as a Spanish resident can not drive a British flagged vessel. So how many skippers who have lived in Spain for years become resident bought houses but drive vessels on their commercialy endorsed YM certs now can't continue to work. seems crazy as I have not come across that many Spanish trained Skippers who could drive the super yachts that we see in Palma etc. Further to this I know many people who have an ICC but have then gone out and bought a nice rib or day boat so are we to presume that they are not licenses in Spain in any way?
 
Blimey, what a mess. Hope the outcome is better/ok.

Yes it does seem you are being taxed by reason of not having an 05. Very harsh. Wouldn't work in UK becuase an established practice of not insisting on 05s would mean the tax folks are unable retrospectively to punish you for not having one. Legal principle of "Legitimate Expectation", it's called. But seems to be different in Spain.

Your position/outcome still depends on whether your business and boat are owned by you personally or a company.
 
Not sure from that if it's a company or partnership??

You wont wanna hear this but if it's a company then it has a branch (sometimes called "PE" in tax jargon) in Spain for sure. That means, so far as the activity of the branch is concerned, it's treated under Spanish tax law pretty much the same as a Spanish resident company (indeed, EU law prohibits there being any distinction). That gives them another reason why Matric tax is due. Indeed, those recent Sp announcements on matric tax specifically explained (correctly) that companies that are in business in spain through a branch/PE and have a boat will be liable to matric tax. It is of no benefit to you that your comany is incorporated or even resident in the UK, alas.

Sorry to give bad news, just saying it how it is
 
Not meant to add fuel to the fire, but do you think it would really make much difference with a partnership?
I suspect they could argue that it is a PE "de facto".
 
Gskip, there seems to be a difference of intepretation between the authorities in Majorca and Menorca. My boat is under precinto in Majorca and has been for several days, yet there is no way I can be considered resident. I've never spent more than 40 days a year in Spain. All of my charter co's boats Mallorca Cruising have been put under precinto. The company owner has consulted a lawyor and been to see the customs in Palma on several occasions. He has been told that any boat with a charter licence and which has not had Mat Tax paid on it, with or without exemption certificate, cannot be used by it's owner for private use and even just 1 day's private use means that Mat Tax has to be paid. The boats have been put under precinto whilst the customs investigate whether the boat has been used privately and, of course, this is easy to do by cross checking marina records.
The owner has a number of choices a) pay the tax + fine (50% minimum) + interest b) lodge a bond to the value of the tax owed whilst his case is investigated and if the tribunal finds against him, he will then be charged the fine and interest on top or c)refuse to pay the tax or lodge the bond and risk a full precinto (ie chaining up the boat) whilst the case is investigated. So the crucial issue in Majorca seems to be private use, not residency. Apparently this is stated in the mat tax regulations but never applied in the past. I'm expecting the legal references to be faxed to me tomorrow. I am going to consult lawyors but at the moment, unless something changes, I'm planning to lodge the bond, simply to get my boat back for my hols which start in 2 weeks. I understand that 4 of Mallorca Cruising's owners have already lodged bonds with the Palma customs
 
"how many skippers who have lived in Spain for years become resident bought houses but drive vessels on their commercialy endorsed YM certs now can't continue to work. seems crazy as I have not come across that many Spanish trained Skippers who could drive the super yachts"


Indeed I have been telling this to all dfor years assoon as I learn that a "resident" could not drive a foreign flagged boat.

I met a uy who owns a 30m ferreti in Banus when we taught him and is friend on our school boat. Now his skipper is Brisitsh holds a Comm YM.

I helped bring a Dominator 86 from Banus to Gib late last year being repossessed by the bank. I have now learnt, a) why I was asked to do the trip, they needed a UK skipper aboard, and b) why it was repossessed. The owner had a Venezualian skipper now the boat never went far local marinas or anchoring, apparantly they stopped at Benalmadena one day and were approched by the Guardia, I guess it did atract attention being so big, who did not accept that the skipper was not a resident, them wham 12%.
 
....and I see Gibraltar getting busier!

This could also make Marina Smir (Morocco) the busiest Superyacht Marina in the Area.

Bad news for any new Marina Developer....Right next to the Gib Border is a huge Marina being built in Spain for the wealthy Gib workers and residents. However most were going to be bought by people who would charter out thir boats. (people I have talked to) Sales have been a lot slower than expected, mind you they are not reducing prices yet.

Marina Alcaidesa HERE

With 22% Unemployment on the CDS they really do not want to enact the MAT tax here...but no doubt they will.

Paul /forums/images/graemlins/blush.gif
 
The tax people have paid heir visit to Banus... Seems that they are after charter boats or boats in company names.

Lets see what comes of it.
 
Oh Dear,

Not good news. I wonder how many people will have to sell the boat to pay the MAT tax, especially with Chartering way down in 2009.

How are those of you in the Balearics going on?

Paul /forums/images/graemlins/frown.gif
 
Paul, its not good news in the Balearics either although there seems to be a difference in intepretation of the regulations between Menorca and Majorca.
It started first in Menorca with a number of charter boats precinto'd but then, inexplicably, the precintos were lifted after 48 hours. Rumour has it that the local police intervened but why they should have done this, I have no idea. By this time, my boat and all the other boats with several charter co's in Majorca had been precinto'd but I was being advised that there was a legal basis for this. Customs in Majorca were citing a little known section of a general Spanish anti money laundering regulation designed to stop Spanish residents registering boats abroad to a foreign company set up for charter purposes in order to avoid mat tax and IVA (VAT) and then using the boat for private purposes. It seems that they deem that anybody including non residents like me offering their boat for charter in Spain is subject to these regulations. Under these regulations any boat with a waterline length less than 15m (in practice this means any boat with a loa up to 50-52ft) is exempt from mat tax providing they have an exemption certificate and, crucially, are used solely for charter purposes. I have taken local legal advice on this and I have been told that this intepretation is legally correct although it is only now that the local Customs have chosen to apply it, due, I guess, to a decline in other tax revenues. Frustatingly, the Majorcan customs have not hit all charter boats simultaneously with those around the north of the island hit first (my charter co is based in Alcudia) and those in the south of the island still waiting for their boats to be investigated which means that some lucky owners have had time to clear off the island. Unfortunately, it's too late for me and many other boat owners, some of whom have already rolled over and lodged a bond equivalent to the mat tax + interest in order to get their boats released. I will lodge my bond during next week as my family holiday starts next weekend. Luckily for me, since my boat is several years old now, it's valuation for tax purposes has been well depreciated but some owners with newer boats could be liable for €100k or more. But I'm still very unhappy as I've only done about 7 or 8 days of charter in 3 years and I have still been caught up in it. In addition I also hear that some larger boats on which mat tax has already been paid in the past are being investigated to check whether the mat tax was properly calculated
There are stories now about perfectly legal foreign flagged private boats in Majorca being boarded by the Guardia Civile and the skipper being asked to confirm that his boat is exempt from mat tax. I've heard of a German flagged boat refuelling in Ibiza Town and another boat visiting Soller to which this has happened
As you can imagine there are hundreds of boats potentially caught up in this. There was an emergency conference of lawyors and charter co's in Palma last Tuesday but I understand no joint action was agreed. To heap irony upon ignomony, the Balearic govt released a report this week lauding the contribution of the boat charter industry to the local tourist economy. Apparently the charter industry contributed €209m to the Balearic economy last year, of which about €32m went to the govt in IVA alone. The mat tax purge which I guess will collect a few million € at most is putting all that at risk
 
Surely once the mat tax is paid, then the government of Ballearics will still get there take form charter and the mat tax as well, they win both ways. Although surely also charter rates will rise to cvover this tax.

If I go to the ballewarics, in my non charter private boat, do I have to pay this tax or get an exemption?

I'm not sure of the implications. If I get an exemption, I cant use my boat??
 
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