VAT Query

[Norman_E]

I am still trying to buy a boat, If I buy a boat in Turkey, VAT not paid, and keep it there, will I have to pay VAT if I cruise the Greek Islands, or other EU coastlines? Does the situation change if I want to register the boat in the UK, but still keep it in Turkey?

 

[smee]

I don't think the VAt status makes any difference to choice of registry, as certainly there have been British Part One boats with unpaid VAT.... so unless they slipped through the net!?

Secondly for cruising purposes, the Reeds Almanac from 2003 states:
Temporary Importation - A boat can only be permitted in to an EU country under temporary import arrangements if:
1) the owner is not an EU resident and 2) The owner does not keep the boat in the EU for more than six months in a continuous 12month period within the EU as a whole. The TI cannot be extended by moving to another EU state.
Which would seem therefore, that an EU resident owner should have his boat VAT paid (even if he keeps it in Turkey) if he wishes to cruise from Turkey freely to the EU for any spell, as it is the owners status as well as the boats status that has to be taken into consideration.

 

[Norman_E]

Thank You, I feared residence might be involved. Trust the EU to try and grab VAT at every opportunity. Best bet might be to take the boat to Cyprus first as I think VAT there is 15%, Greece much higher. I will have to research it further.

 

[scarlett]

Or Rhodes

 

[snowleopard]

The Azores make an industry out of people importing boats from the US and paying 12%.

 

[Melody]

I think VAT is only 4% on yachts in Greece. Not sure as we run a professional yacht and so it doesn't concern us, but it certainly was 4% until recently. The normal VAT rate here is now 18% but Greek shipping has different rate. Might be worth checking - maybe call a Greek yacht broker.