Paying VAT in the Azores

[animamundi]

We are thinking of sailing to Europe via the Azores. We bougth the boat in the WIs Ex VAT and, I beleive, we need to pay VAT in a country in Europe in order to legally stay more than 6 months in the EU?

If anyone knows off or have experience of paying VAT in the Azores, kindly PM me alt. reply in the forum.

THANK YOU!!

Petter

 

[Tranona]

No. If you are a non-EU resident you can visit the EU normally for 18 months with an exemption, albeit with some not very onerous restrictions. It is also not difficult to extend this period.

You only have to pay VAT if you are an EU resident bringing a boat in from outside or if you wish to sell your non-EU boat in the EU - plus you might have to go through other hoops to comply with the RCD.

If you are an EU resident then you can get the basic rules on importing the boat from the RYA and more detail on paying VAT from HMRC VAT notice No8. If you qualify as a returning resident you may be able to avoid it altogether.

 

[25931]

Even if you should wish to import, the Azores, being part of Portugal, would be too expensive with vat at 23%.

 

[macd]

Even if you should wish to import, the Azores, being part of Portugal, would be too expensive with vat at 23%.

1. The Azores (and Madeira) have a reduced VAT rate to aid the local economy. In 2010 it was 15%.

2. VAT rate isn't the whole story. I looked into this issue some years ago. The evidence then was that the Vatable value placed on a boat in the Azores was likely to be significantly lower than in, say, the UK. So even if the rate were higher there (which it isn't), the amount due could well be less.

See here for international VAT rates: www.tmf-vat.com/international-vat-rates.html

 

[animamundi]

Thank you!

Thank you for replying. I have not had internet access for a while, hence my late reply. Tks again!

Petter

 

[rivonia]

If you do go to pay VAT in the Azores, my advice would be go to HORTA. The staff the are all so friendly and go out of there way to help in any way that they can. Call into Isle de Flores first, it is truely an unbelievable place to explore.

The VAT in the Azores is lower than main land Portugal.

If you are a BRIT and you do not have an abode in UK, look into returning resident rules as suggested earlier on this thread.

Good luck

Peter