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Old 12-29-2012
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Zanshin Zanshin is offline
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Re: Croatia and VAT

If you have a boat registered in the Caymans or the BVI and you travel to the EU with the boat then you don't immediately have to pay VAT upon entry into the Union - a great cash savings but the boat now needs to leave the EU in order to keep that tax-exempt status. I believe it is every 18 months but haven't looked into the details. I gather that if I own the boat in my name and cannot prove residency outside of the EU they will collect VAT as well - I've heard anecdotal stories about the Germans doing so but no first-hand experience; this means that to be 100% effective one would need to create an IBC and have the ownership in the company name plus a contract between yourself and the company allowing use. All rather complex but for a big yacht that work can be worth it.

In my case I won't be returning to the EU with the boat for a while, and when I do it will be part of my belongings as a returning expat and will be VAT exempt (with a couple of conditions, such as not selling the boat within x-months of returning). By that time depreciation will have also reduced the tax value of the boat.
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