VAT Drawback If I export out of the EU

[SlowGoin]

Looking a vessel 2007, China built, originally registered in the Netherlands, now registered in Sweden. Looking to see if I/or the seller, can capture the VAT/Import duties paid IF... the vessel is sold out of the EU and the seller/buyer provide documentation of the boats export to a non-EU country. This is viable when purchasing from Canada and importing to the US. Albeit the US import will incur a 25% import tariff as it was Chinese manufactured (current US tariff).
If there is a drawback then it would underwrite the purchase, and subsequent US tariff if going back to the United States. It makes the deal plausible as the the vessel is expensive!Thanks in advance!!!!

 

[jfm]

I’m not sure what you’re asking. I could make a guess but I’m not sure that’s helpful.

What do you mean by “capture”? Do you mean getting a refund from the tax authorities of taxes paid previously by a previous owner? And by “drawback” do you also mean getting a refund? What we (in European EN) would call a “clawback”

The answer is generally“no” I’m afraid. Two scenarios:

• If the seller is a private owner the answer is 100% no.
• If the seller is a business selling a business asset that hasn’t previously been subject to non credited VAT, then the answer is a partial yes. There would be no cash refund of any taxes paid in the past but the sale to you would itself be exempted from being charged to VAT. This is complex and EU VAT works quite differently from US sales tax. You need to give a ton more detail about the seller (whether in business) and the boat’s VAT history and VAT status (whether or not in free circulation, to use EU jargon) to get a definitive answer.