Purhasing in Turkey

[Guest]

I have found a yacht in Turkey that I am very interested in purchasing. The boat has not had tax paid on it. If I purchase it does anyone know what the contractual and legal rules are in Turkey. If I wish to return it to UK and stop in other EEC countries en-route will the respective Customs charge VAT at the first port of call? Can I leapfrog the situation by paying the duty here before returning the boat or does the boat physically have to be here before paying duty? Finally how do the arrive at the value on which tax is levied-that is who values the boat? Any help or pointers greatly appreciated.

 

[AndrewB]

As an EC resident you will be liable for VAT at your first port of call within the EC. The valuation will be based on the purchase price of the yacht as recorded on the bill of sale, unless Customs have reason to doubt its validity.

There is an RYA faq on the VAT situation for yachts bought in Turkey, at http://www.rya.org.uk/Cruising/faqs.asp?contentId=568919.

There are some useful VAT leaflets available on line which may help you, though they relate to importing into the UK:

Bringing belongings to the UK from outside the EC, http://www.hmce.gov.uk/forms/notices/3.htm

Sailing your pleasure craft to and from UK, http://www.hmce.gov.uk/forms/notices/8.htm

The VAT National Advice Office gives advice on yacht import/export, tel: 0845 010 9000.

Do not forget that a yacht bought in Turkey may need to comply with the RCD. This can be more difficult, specially if it is not CE marked, nor has been built or kept in the EC prior to June 1998.

 

[jamesjermain]

Beware

Nothing much to add to Andrew's post except be very careful of boats for sale in Turkey. There are bargains to be had but the market there is full of boats of unsound provenance, failed, debt ridden projects, bankrupt stock, clapped out ex-charter boats etc. I would think twice about buying a boat in the Eastern Med unless I have very good provenance in the form of French, German or British registration and continuous paperwork. Even then I would deal through an internationally reputed broker and get my own surveyor on the case.

JJ

 

[harvey]

A couple of years ago when I was briefly interested in buying a boat in Turkey I was told in Marmaris that there is a friendly Greek VAT assessor who will view the boats value favourably and hence the VAT charged would be lower. I think I would have had to take the boat to him for him to tell me that "the value of the boat was lower than the amount I had paid"! He, of course, benefitted from getting my arrangement fee. Cheapest still would be to take it to the Azores where VAT is at a much lower level (10%?) but they are still part of the EEC......

Pip Pip

 

[AndrewB]

VAT in Azores

Yes, the yacht has to be taken to Customs, you can't pay remotely. Customs do have discretion to make their own valuation, its true - but what is the incentive for a low one? Call me prejudiced, but when Turks start recommending Greek officialdom (or vice-versa) I smell a rat!

I tried to pay VAT in the Azores in 1997, but was told the concessionary rate (which I think was then 8%) is only available to Azores residents. Yachts were asked to continue to mainland EC to settle VAT.

 

[harvey]

Re: VAT in Azores

Actually, it was a Dutchman who told me about the Greek and it was in the Greeks best interest because he got more customers that way and thus made more money acting as agent.
In summer 2000 as I brought my boat back from the States I was encouraged by the local C&E to clear in Horta and was shown a big fist full of papers from previous sailors who had cleared there at, I think, 10%. The only reason I didn't was because I couldn't wait the 10 days required while the papers were sent away for the clearance to be given. Next time......

 

[Guest]

Thank you for this. I looked on the RYA site where it sems very explicit that as an EU resident I must pay VAT in Greece which would be my first port of call in the EU. Later I spoke to HMCE who said that as the boat is registered in Jersey I can return it there and effectively transit Greece etc and import it to UK at my convenience. I am now confused and will e-mail for further clarification. Do you know if the port of registry makes a difference or why is there an apparent contradiction?

 

[AndrewB]

Jersey registration

Jersey is outside the EC, and VAT does not apply. The Channel Islands, Gibraltar and the Cayman Islands are used as 'flags of convenience' by yachts in the US and other contries to avoid local taxes. These islands permit non-residents to register yachts by setting up local 'companies'.

This is beyond my experience. The RYA advice applies to the more usual circumstances and I would expect the HMCE advice to be correct. Assuming you can retain the registration, and that you can claim your final destination is Jersey, then presumably the yacht can transit intermediate EC countries under the Common Transit System rules. However, on a UK passport, you might still experience problems with local Customs officials along your route unless you have some form of documentation. You might find it useful to contact Customs in Jersey.

 

[Guest]

Re: Beware

I have to agree with james re buying in Turkey. Check provenance thoroughly. If in any doubt, don't.