VAT on second hand boats

[armybrat]

Still looking at boats in Spain and Gibraltar and becoming concerned that buying away from home has difficulties beyond my comprehension ! It appears that if I buy a boat in Gib which has had its local tax paid I still have to pay VAT if I go to a Euro country !! so why does anyone buy a boat in Gib ?.Also I seem to be told that the level of VAT varies on a 'loose' estimate of the boats value depending on whom you talk to ! Can anyone help ? brokers ,sols and vendors speak with forked and different tongues.

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[snowleopard]

...what's more, if you buy a VAT-paid boat in Gib, you'll have to pay the VAT over again if you bring it back to europe, if the transaction takes place within the EC that doesn't happen.

it's only worth buying a boat outside the EC if it's 17.5% cheaper than it would cost here or if you aren't planning on coming back.

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[Neal]

if its a VAT paid boat in Gib, get the owner to take it to Spain and conclude the deal there, to preserve its VAT status.

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[armybrat]

Thanks for the help but I am still a very confused bunny.If I buy this boat in Spain(ie conclude the deal) or any other EEC country (and remember Gib aint in the EEC) do I then pay VAT on it or not ? Both of the replies tend to suggest that no vat is payable if a deal is done in the EEC.

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[Heckler]

if an american buys a boat in gib he doesnt pay vat
stu

<hr width=100% size=1>http://www.beneteau-owners-association.org.uk

 

[Chris_Robb]

There are a few areas you need to think about.

1. The European Contruction rules (what ever its called). A boat boat outside the EU - and gibralter is outside - will have to be certificated - even if it originated from the EU. This can cost money. This catches ANY imported boat - even a re-import.

2. VAT. If the boat was originally VAT paid in the EU, you wont have to pay VAT -in theory. However if you bought it in Gibralter - and had no proof - then you would be made to pay again. You pay VAT at the rate of the country where you first call in - from GIB this will be Spain or Portugal.

Proof can be in the form of an original bill of sale showing VAT paid, or a customs certificate, issued by a EU country. - this would be the normal format for a pre-vat boat which was resident in the EU on the 31st December 1987 (not quite sure of the date)

If you have neither of the above - then you will have to assume that you will have to pay VAT (at a value assessed by Customs alone) and also orange certification of the boat without which you are not allowed to use it let alone resell it in the EU. Payment of any local Gib taxes are totally irrelevant.

SO be very carefull.

<hr width=100% size=1><P ID="edit"><FONT SIZE=-1>Edited by Chris_Robb on 08/04/2004 10:10 (server time).</FONT></P>