Question about VAT for non-EU registered yacht

[patrickstickler]

I've contacted the tax and customs folks in the UK, Finland, and the main EU offices with this question, but after two weeks all I've gotten is referrals to the official documentation, from which I can't find a clear answer, and I'm hoping someone here might be able to speak from direct experience...

If I buy a boat in Europe, for which the VAT has already been paid, and register it under a US flag, and then tour around Europe for longer than 18 months, will I be liable to pay VAT again, or not.

Does the 18 month exemption period only relate to VAT, and is it irrelevant if the VAT has been paid in the past for that yacht, irregardless of the country of registry?

Is there any way a boat for which VAT has been paid in the past, would be liable for VAT to be paid again? What about other kinds of duties/taxes?

Would registering it under a US flag be considered "exporting" the boat from Europe, and after 18 months, could I be liable for some form of import duties or other taxes separate from VAT?

Thanks.

[varadero]

Regarding VAT, once the vessel has paid VAT in Europe, it cannot be charged again. It is important that you maintain the VAT certificate for the vessel in case you sell it to a European in the future. Other Taxes are dependant on which national region you are cruising. It is quite easy to renew your 18 months by visiting a non EU state for a short term, Gibraltar, Algeria, Morrocco, Tunisia, Norway, and Albania are all popular,
Not withstanding this info, I do reccomend you consulting a Tax specialist in this matter as opposed to the Tax department. Your broker should be able to point you in the right direction.
Bobby

[rotrax]

As I understand it, once the dreaded V.A.T.has been paid it is a one off deal.Keep the V.A.T. certificate and if the vessel is in an E.E.C.country where V.A.T.is paid you have proof of payment.If it is removed from the V.A.T. area and subsequently returns all is well if you have the certificate.If purchasing a vessel out of the V.A.T. area and bringing it in, it can pay to choose a country with a low V.A.T.rate as entry port.

[Broomfondle]

VAT is really a tax on end users. It is charged in most transactions but then refunded if the transaction is actually part of the supply chain, such as a company buying raw materials. Like many taxes the rules that attempt to implement the principle are clear most of the time but struggle with a few edge cases. You are unlikely to get any sort of definitive answer from any tax official unless they are formally auditing you. This makes sense from their perspective if you think about it.
I don’t think that country of registry or sailing area is too important, I suspect that what really matters to the VAT authorities is the country of residence of the registered owner.
Assuming that the boat is sold by a VAT registered UK company then if it is sold to a UK or EU resident then VAT will have been charged and this should be clearly indicated on the receipt. If the boat was bought outside the EU then VAT will not have been paid so if the boat is brought into the EU, ie the vessel ownership becomes assigned to an EU resident then VAT and possibly an import tax will become payable.

[Minnewaska]

I'm no authority on this, but I thought when an EU owner sells outside the EU, they could apply to have their VAT refunded. If you are counting on the VAT having been paid, you may want to confirm this.