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EU VAT & Import - we are here to help

VAT Questions About Buying a Boat? Find All the Answers Here!

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EU VAT & Import

VAT Questions About Buying a Boat? Find All the Answers Here!

Are you looking for answers to VAT questions related to purchasing a boat? You’re not alone. We receive numerous inquiries every day about VAT regulations for boats in European waters.

The situation has become more complicated since Brexit, but we’re here to help.

Below, you’ll find answers to the most common VAT-related questions we receive, with insights from EU tax authorities. Need assistance from us in arranging your VAT declaration for your yacht in the EU? Just let us know!

EU VAT and Boat Import

Need an EU VAT Certificate for Your Yacht? We Can Assist with EU Boat Imports

EU VAT and Boat Import

Need an EU VAT Certificate for Your Yacht? We Can Assist with EU Boat Imports

If you’ve bought a boat outside the European Union (EU) and want to bring it into an EU country, you must pay VAT. The good news is that once you pay VAT in one EU country, it covers all EU countries. You can use your boat freely across EU waters without paying VAT again.

We make the VAT process easier by importing your vessel through the Netherlands. For a small fee of just 250,- euro, we will handle communication with the Dutch Tax Department to secure your official EU VAT Paid Certificate.

Just provide your boat details, and we’ll give you an estimate for your EU VAT.

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Ingrid

Yacht Registration Specialist

Jeroen Korthuis

Manager

Chanel

Yacht Registration Specialist

Common VAT Questions for Boat Purchases

Common VAT Questions for Boat Purchases

1. What determines the VAT status of a vessel?
VAT status depends on whether VAT has been demonstrably paid by a private person within the EU.
2. Can I avoid paying VAT on my boat purchase?
As an EU resident, avoiding VAT is illegal and can result in heavy fines or boat seizure.
3. Do I need to pay VAT if I buy a boat with BVI registration and I’m an EU citizen?
Yes, as an EU citizen, you must pay VAT on any boat purchased within the EU. The boat’s flag does not affect VAT obligations.
4. Can a UK citizen use a VAT-unpaid boat in UK waters without paying VAT, using a Marshall/Delaware/BVI flag?
Post-Brexit, the UK is now considered a third country. The boat’s registration flag is not the issue—it’s the owner’s residence. To avoid VAT, the owner must live outside the EU, and the boat must be registered and used outside the EU.
5. Can an EU citizen use a VAT-unpaid boat in EU waters with a non-EU flag?
No. EU residents must follow EU VAT regulations, regardless of the flag under which the vessel is registered.
6. What documents do I need to prove the VAT-paid status of a boat from the previous owner?
The seller’s invoice serves as proof of VAT payment. This invoice must comply with EU VAT invoicing rules.
7. Can I set up a company outside the EU and register my boat under a non-EU flag to avoid VAT?
No. Doing so constitutes tax fraud. As an EU tax resident, you must follow EU tax rules.
8. What should I do to get a VAT exemption for my boat when entering EU waters?
As an EU resident, you’re not exempt from VAT. Non-EU residents may qualify for the Temporary Importation scheme, which allows a boat to remain in EU waters for up to 18 months.
9. How long can I stay in EU waters without paying VAT?
With Temporary Admission, non-EU residents can stay in EU waters for 18 months. After that, you must leave and re-enter to extend the period, up to 10 years in total.
10. How can I check the VAT status of a boat I’m considering purchasing?
Check the seller’s invoice to verify VAT payment. If the seller is a business, they should issue an invoice showing VAT or a margin invoice.
11. Are boats made before 1978 exempt from VAT?
No. Boats built or used in the EU before January 1, 1985, are considered VAT-paid, but major modifications require proof of VAT status.
12. What documents do I need on board to prove VAT payment to EU authorities?

Keep the seller’s invoice and any official documentation proving VAT payment. In the Netherlands, this can be obtained from the National Yachts Unit in Vlissingen.

13. Is registering a boat with a non-EU flag within the EU considered exportation?
No, registration has no bearing on tax status. Exportation refers to physically taking goods out of the EU customs territory.
14. Do I need to pay VAT on a boat bought in Croatia if I won’t use it in the EU?

If you export the boat outside the EU, you must submit an export declaration to avoid VAT. If the boat re-enters the EU, it is subject to import VAT.

15. Can I get a VAT refund if I buy a brand-new VAT-paid boat and export it out of the EU?
No, VAT is not refundable on goods exported from the EU. Boats intended for export should be sold at 0% VAT.
16. Is there a VAT refund on second-hand boats when exporting out of the EU?
No, VAT paid on a second-hand boat cannot be refunded when exporting out of the EU.
17. If I buy a VAT-paid boat from outside the EU and register it in the EU, do I need to pay VAT again?
Yes, when importing a boat into the EU, VAT and customs duties must be paid, even if VAT was paid outside the EU.
18. Can EU authorities check VAT payment if I sail outside my home country in EU waters?

Yes, EU authorities can check if VAT has been paid on your boat, and you’ll need to provide proof, such as an invoice or VAT statement.

By understanding and following VAT regulations, you can enjoy sailing in EU waters without unexpected costs. Always ensure you have the necessary documents to prove VAT compliance.

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BlueWater Registration Services