VAT Malta

[pugwash]

A friend in Malta wants to buy a 1979 Westerly Renown. It was sailed out from UK five years ago, sold to a local person, and re-registered as a Maltese vessel. So when he sails to an EU country what papers does he need to show that VAT was paid? Does he have to prove that the boat was in commission when VAT was introduced in the UK? Or does he have to show that it was in commission in Malta when Malta entered the EU and introduced VAT? Any helpful thoughts? Thanks.

 

[temptress]

Contact the RYA. i believe that when Malta entered the EU that's it. As long as the boat is registered in Malta and was in use when Malta entered the EU. Not sure about the RCD stuff so as before I suggest you contact the Leagl Guys at the RYA (it's free if you are a member and if not might just justify the membership fees).

 

[Lizzie_B]

If he can show the vessel was Maltese registered and 'in use' in Malta on the date Malta joined the EU (april 2004 I think) he is VAT exempt and also RCD exempt. So he needs the Maltese registration and a bill, such as a mooring or marina bill of the appropriate time period to show 'in use'

 

[Gordonmc]

I did the homework on this issue with regard to a potential purchase of a boat in Cyprus. Proof the boat was "in use" in Malta prior to April 2004, the EU accession date, should be enough to satisfy. Unfortunately there is no certification once proof has been established, so the documentary proof will have to stay with the boat.
This is especially true if the boat enters the juristiction of other EU members in transit back to the UK, ie Italy,France and Spain.
Its easier to sort out the RCD. A CE proof certificate is available for £100 on presentation of the same documentation as for VAT exemption.
The documents can take the form of berthing agreements, insurance and repair invoices.
The CE proof application is a PDF which I have a copy of if you need it. Send a PM with an email address.

 

[Lizzie_B]

CE proof may be fine for handling the complexities of proving RCD compliance, but their 'exemption certificate' which is what would be appropriate here has no legal standing whatsoever, and simply records the documents that have been offered as proof of exemption. As it takes no more effort to keep the documents safe, than to keep the 'certificate' safe I see no point in paying someone to provide an additional piece of paper to keep safe.

 

[Appleyard]

I bought a boat in Malta this year and checked outthe VAT situation . If the boat was in Malta before EU accession it should have a VAT certificate showing te VAT having been paid at the then rate (5% ) After May 1 2004 the rate went up to 18% (I think) so any boat imported then would pay this rate. However it was agreed that any boat which had the VAT paid prior to May 1 would be deemed "VAT paid " for EU purposes and no further payment should be necessary.
So.. you should have a VAT certificate stamped by Maltese customs and dated prior to May 1 2004 .If you have,take it to the customs office and get them to endorse it "VAT settled" and all will be hunky dory. If you do not have any VAT certificate you will have to get one..and pay..so get the price adjusted accordingly.The Malta customs are very helpful ..there is also a guy at the RYA who was very knowlegable his name is Johnston if I recall.
Having said all this ,I have yet to be asked for the VAT certificate anywhere ..the SSR is what everyone wants to see. Good luck

 

[temptress]

you need VAt proof. I have been asked for VAT proof in France (North and Med), Portugal, Northern Spain and also in the UK. Once saw a New sweedish registered Sweeden 45 impounded in Cameret by the french because it had not 'proof' of VAT status.