Portugal vat

sailaboutvic said:
As anyone else been awhere of this ?
I can't quite work it out .

VAT warning for boats visiting Portugal - Yachting Monthly
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As I understand it, boats in the EU on the 31st December 2020 are considered VAT paid. It states he is a tax resident. So there are several issues here. Was the boat in Portugal on the date above? If he has moved full time to Portugal for tax purposes then the boat may be considered imported? He has used NZ ltd company, are the Portuguese suspicious of his use of?
 
It says EU vat Paid whe he Brought the boat in malta.
Doesn't sound as if the boat left the EU for any length of time so don't see where RGR comes into it .
Also registering of flag comes into it when it comes to vat as far as I know
 
Lots of odd things about that situation. Why was the large and expensive boat bought and owned through a New Zealand company, rather than simply owned privately? This may raise some suspicions about being done for tax avoidance purposes?
And as a Portuguese resident, what rules apply due to residence?
Hardly a typically boat owner situation.
 
Not surprising as it is up to individual states to manage the RGR process. It has always been the case that when EU goods leave the EU they are potentially liable to VAT on return unless they qualify for one of the reliefs. I expect here it is a case of customs thinking that reliefs are not available on boats that are registered outside the EU, whereas it is quite clear that registration and ownership is irrelevant under EU rules - individual states have no say in the rules. No doubt the owners will pay a local lawyer to sort it out, although it is quite possible to apply to the Commission for a ruling to force local customs to apply the rules correctly as the CA has recently with both Croatia and Greece (different rules but same principle).
 
I suspect there's something we're not being told. Having been based in Portugal for 16 years, I've never heard of a situation like this before. If as he says he has Portuguese residence and the boat is EU VAT paid, why would they declare they were leaving Portugal to Gib or anywhere else? We don't have to report to anyone, whether leaving or entering the country. Never any problems entering Spain directly from Gib and then on to Portugal.
 
Graham376 said:
I suspect there's something we're not being told. Having been based in Portugal for 16 years, I've never heard of a situation like this before. If as he says he has Portuguese residence and the boat is EU VAT paid, why would they declare they were leaving Portugal to Gib or anywhere else? We don't have to report to anyone, whether leaving or entering the country. Never any problems entering Spain directly from Gib and then on to Portugal.
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I think you probably right , there is more to it.
One would only report and even that's not needed if they where wanted to get out of the EU as there 18 months was up .
Although he says vat was paid in Malta I'm wounding If it was.
 
sailaboutvic said:
I think you probably right , there is more to it.
One would only report and even that's not needed if they where wanted to get out of the EU as there 18 months was up .
Although he says vat was paid in Malta I'm wounding If it was.
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Reading this article again, I wonder why YM have published it as a warning to UK boat owners arriving in Portugal.

The boat is owned by a New Zealand limited company; Varley and his partner, Peter McLean, who is a New Zealand resident, are equal company shareholders.

Although he's a shareholder in the company, he can't claim the boat is his personal property - it's a foreign company who have imported the boat which is a totally different ball game, compared to a private owner sailing his own boat.
 
Graham376 said:
Reading this article again, I wonder why YM have published it as a warning to UK boat owners arriving in Portugal.

The boat is owned by a New Zealand limited company; Varley and his partner, Peter McLean, who is a New Zealand resident, are equal company shareholders.

Although he's a shareholder in the company, he can't claim the boat is his personal property - it's a foreign company who have imported the boat which is a totally different ball game, compared to a private owner sailing his own boat.
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Agree and possibly more to this story than has yet been told to the general public.
 
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Graham376 said:
Reading this article again, I wonder why YM have published it as a warning to UK boat owners arriving in Portugal.

The boat is owned by a New Zealand limited company; Varley and his partner, Peter McLean, who is a New Zealand resident, are equal company shareholders.

Although he's a shareholder in the company, he can't claim the boat is his personal property - it's a foreign company who have imported the boat which is a totally different ball game, compared to a private owner sailing his own boat.
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Still irrelevant who owns the boat as it (of the information given is correct) has not been imported into the EU. It is already EU goods so is eligible for RGR assuming it has not changed ownership outside the EU.
 
Tranona said:
Still irrelevant who owns the boat as it (of the information given is correct) has not been imported into the EU. It is already EU goods so is eligible for RGR assuming it has not changed ownership outside the EU.
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In theory you're correct but don't forget the Portuguese customs will screw you every chance they get. They have funny rules about import of goods when taking up residence, which it appears he did after B day. They wanted €8k paying on a €1k value car (EU VAT paid) a resident tried to bring in from Spain as he didn't declare it at time of obtaining residence. As others have said, there's something missing in this story.
 
Graham376 said:
In theory you're correct but don't forget the Portuguese customs will screw you every chance they get. They have funny rules about import of goods when taking up residence, which it appears he did after B day. They wanted €8k paying on a €1k value car (EU VAT paid) a resident tried to bring in from Spain as he didn't declare it at time of obtaining residence. As others have said, there's something missing in this story.
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But this is nothing to do with the owner taking up residence, but the EU rules on VAT where there is no local "discretion". but you are right there is something (probably a lot) missing.
 
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