VAT on charter boat coming off hire

[spencerd]

Has anyone had recent experience of paying VAT in Greece for their boat coming off charter and being British flagged. I thought that the value was written down due to age and the length of time it had been chartered. My boat is a Bavaria 44 and was chartered from new. It would seem that the Greek holding agent has a chat with the tax office and a figure agreed....Ummmmmmmm:ambivalence:

 

[Tranona]

It depends on the circumstances. If you are buying an ex charter boat from the operator then VAT is charged on the sale price. If you purchased the boat on a structured management deal then it depends on the structure of the deal. I bought my boat on a 48% upfront deal and paid VAT on the original contract price. If I had paid the full price for the boat and received an income VAT would have been on 50% of the contract price after 6 years. These are the rates that Kiriacoulis use, but I do not know if they are the same for all charter operators.

They only apply if you are the original buyer. If the original buyer sells to the operator at the end of a contract then a sale to a third party triggers VAT on the sale price.

Hope this helps.