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Go Back   SailNet Community > Out There > Destinations > Iberia & The Med > Croatia and VAT
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Thread: Croatia and VAT Reply to Thread
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Topic Review (Newest First)
10-02-2013 05:05 AM
carollauf
Re: Croatia and VAT

Hi I intend to fly to Croatia from australia and sail around Europe before returning home. What is the best way to go about it with vat etc.
Mal
01-27-2013 10:52 AM
Maritimus
Re: Croatia and VAT

Quote:
Originally Posted by Invictus View Post
Does it mean that you have to buy the boat in Croatia? What if you buy it elsewhere in the EU?

This is maybe a nice move from them, but everything else may be more expensive so I think it is not straightforward decision. The whole EU will further suffocate its citizens with more and more taxes so I don't see any end in sight. It is a matter of time when EU asks Croatia to hand them the names of all those Italians and others who moved their boats to Croatia to avoid tax increases.
You are not right!. This action was coordinated with EU regulations and is absolutely legal. You import your boat in Croatia, pay reduced dues (VAT 5% and custom 1.7%) and on 01.07.2013 after Croatian entering EU your boat will have status EU VAT paid. If you are criminals and purchased your boat with black or dirty money is different story. Authorities can knock on your door does not nater where boat is registere. More about boat import in croatia can be found on www maritimus-consultant.hr
12-29-2012 10:12 AM
PCP
Re: Croatia and VAT

Quote:
Originally Posted by Zanshin View Post
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 think it is only 6 months.

Regards

Paulo
12-29-2012 06:52 AM
Zanshin
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.
12-28-2012 12:10 PM
Invictus
Re: Croatia and VAT

Thanks Zanshin
I am not a tax expert but I am wondering what are the advantages of that vs having your boat registered in the Caymans, BVI or similar jurisdiction. I agree on the initial cost advantages but I am concerned that at some point, financially desperate governments will come after you anyway (like the encouraging 75% tax for the 'rich' in France), or introduce additional but differently phrased costs.


Cheers
12-28-2012 11:57 AM
Zanshin
Re: Croatia and VAT

Invictus - you don't need to buy the boat there, but you need to register the boat there. If the previous flag was outside of the Eurozone or the boat was registered in the Eurozone but not VAT paid then re-registering and paying the reduced VAT is a great money saver (and source of income for Croatia).
12-28-2012 11:36 AM
Invictus
Re: Croatia and VAT

Does it mean that you have to buy the boat in Croatia? What if you buy it elsewhere in the EU?

This is maybe a nice move from them, but everything else may be more expensive so I think it is not straightforward decision. The whole EU will further suffocate its citizens with more and more taxes so I don't see any end in sight. It is a matter of time when EU asks Croatia to hand them the names of all those Italians and others who moved their boats to Croatia to avoid tax increases.
12-22-2012 05:48 AM
Zanshin
Re: Croatia and VAT

PCP - that article in YACHT.DE just re-states, in lay terms, what the original post said. They did mention a luxury tax in Croatia which I would be afraid might be levied in the future.
Many of the boats in Croatia belong to EU residents/citizens and are not VAT paid, so this measure was taken to ensure that these boats don't emigrate, along with their cash, to countries such as neighbouring Turkey. It does look like a very good deal and I intended on returning to the EU within the next 5 years then I'd certainly look further into a Croatian flag.
12-21-2012 09:11 AM
PCP
Re: Croatia and VAT

Here you have more information:

Kroatien: Nachversteuerung zu 5 Prozent kommt! - Reise*|*YACHT.DE

I don't think the problem would be with Croatia. Regarding Croatia if they say you have the VAT paid, you have the VAT paid and that's finish.

The problems is how the other EC countries are going to look at this maneuver that is clearly a way of evading tax in their countries and what they are going to do about it?

Maybe nothing because this is just a transitory 3 months measure. I guess it will depend on the number of sailors that will try to take advantage of this.
12-21-2012 05:08 AM
Zanshin
Re: Croatia and VAT

I was thinking along the same lines - I am sure that this is EC-legal, but am also wary of future changes in Croatia that might make flagging boats there more expensive than originally presented. I'm in a perfect situation for this - an EU passport, residency outside of the EU, a UK flagged boat with no VAT paid. The difference between VAT this way and if I were to return to the UK on my current boat value is almost $100K!
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