Paying for VAT on boat in Greece

[rohanpritchard]

Hello,

I’m looking at purchasing a privately owned British SSR registered boat in Greece, it’s currently VAT unpaid (even though it’s privately owned... apparently the Greeks never ask for proof so people get away with it all the time). I’m only willing to buy the boat if I can pay the VAT on it, so I’m trying to find the easiest way to do it, I’ve heard that sailing it to Italy and paying there could be an option, it’s inherently difficult to pay for it in Greece. Does anyone have any experience here?

Thanks,

Rohan

 

[RichardS]

Welcome to the forum.

That's a great post to start the ball rolling but it's not my area so I'll just hold on for the ride.

Richard

 

[Bobc]

I seem to remember that Malta has the lowest VAT rates in the EU

 

[rohanpritchard]

I seem to remember that Malta has the lowest VAT rates in the EU

Hi Bobc, so is it as simple as rocking up with a British registered boat and visiting the port authorities and paying up? This is the area I’m unclear about... do I even need to have the boat there or can the boat remain in Greece? If I must sail it there, I’d much rather visit somewhere like Italy (only about 60nm from where it’s currently based), it’s not a hugely expensive boat, so marginal VAT rate differences doesn’t play a huge factor for me.

Thanks!

 

[seumask]

I believe the RYA legal team can give guidance. Probably worth being a member for a while if your not already.

 

[macd]

I seem to remember that Malta has the lowest VAT rates in the EU

Luxembourg's cheaper, but a trickier sail
(But almost everywhere is cheaper than Greece.)

Trouble is, it sounds like the VAT would be due in Greece. In fact it already is.

 

[CAPTAIN FANTASTIC]

Am I right to say that somebody must have paid the VAT when it was first bought?. Do you really need to pay the VAT? Can you make enquiries and get more clarity or pay the VAT (24% ?? or part of) locally?

 

[macd]

Am I right to say that somebody must have paid the VAT when it was first bought?.

Possibly it's an ex-charter, with the VAT re-claimed. Or a dodgy import.
Tranona would be helpful on this, until he left in a huff. He's missed.

 

[rohanpritchard]

Possibly it's an ex-charter, with the VAT re-claimed. Or a dodgy import.
Tranona would be helpful on this, until he left in a huff. He's missed.

Indeed, it is an Ex-charter boat, however it was purchased privately an unknown number of years ago, so it *ought* to have had the VAT paid by now, as a result of that transaction.

 

[Besonders]

Hi, I have some first/second hand experience of this. I assisted was present when my German friend purchased and sucessfully paid VAT in Greece on a yacht purchased in Turkey. In order to do this he had to use an agent and this of course incurred a fee.
On the poitive side the fee was recouped as the value of the yacht for VAT purposes was significantly lower than the actual value IMHO.
I believe there was no physical inspection involved and all parties taxman incuded were happy with the outcome. The yacht is fully listed on what i can only describe as the 'Helenic yacht VAT register'
The factors that you need to consider before approaching the Greek authorities via your agent are :
The age of the vessel
The purchase price/value of the vessel
The greater the value, the more interest the authorities will take

 

[rohanpritchard]

Hi, I have some first/second hand experience of this. I assisted was present when my German friend purchased and sucessfully paid VAT in Greece on a yacht purchased in Turkey. In order to do this he had to use an agent and this of course incurred a fee.
On the poitive side the fee was recouped as the value of the yacht for VAT purposes was significantly lower than the actual value IMHO.
I believe there was no physical inspection involved and all parties taxman incuded were happy with the outcome. The yacht is fully listed on what i can only describe as the 'Helenic yacht VAT register'
The factors that you need to consider before approaching the Greek authorities via your agent are :
The age of the vessel
The purchase price/value of the vessel
The greater the value, the more interest the authorities will take

Thanks for this insight!

 

[Besonders]

Good Luck,
Should you require any further in-depth information. please feel free to PM me. I would be open to a telephone conversation

 

[Stemar]

I would never condone it, because it's dishonest , but I wonder what's the likelihood of anyone checking if the bill of sale said "VAT Status: Paid"

 

[CAPTAIN FANTASTIC]

Indeed, it is an Ex-charter boat, however it was purchased privately an unknown number of years ago, so it *ought* to have had the VAT paid by now, as a result of that transaction.

If that is the case, I would not bother about the VAT; I dont think the local authorities would care; have a word with them.

 

[ostra4]

Indeed, it is an Ex-charter boat, however it was purchased privately an unknown number of years ago, so it *ought* to have had the VAT paid by now, as a result of that transaction.

I purchased an ex-charter boat some 15 years ago in Greece , the boat was deemed Vat exempt by the authorities having completed the requisite number of charters to qualify for that status , Iv no idea how many that was .I received an exemption certificate which I duly passed on to the buyer after I had owned the boat for ten years .Its possible if the original purchaser from the charter company might have the same as you say it's some time ago , might be worth asking although I'm fairly sure that's the exemption status was removed a few years back for new transactions .

 

[RichardS]

I purchased an ex-charter boat some 15 years ago in Greece , the boat was deemed Vat exempt by the authorities having completed the requisite number of charters to qualify for that status ,

I've not heard of that before. I'm surprised that any boat being sold by a business to a private individual could ever be VAT exempt as I would have thought that would be against EU rules even 15 years ago. Sadly, I'm sure that it's not like that now.

Richard

 

[macd]

Does seem a bit odd. Perhaps some conflation between written-down value (which could have rendered the value as zero), and VAT value which, if the sale realised any money at all, could not.