Buying a boat in Croatia vat issues - SailNet Community
  • 1 Post By Houston Sailor
LinkBack Thread Tools
post #1 of 4 Old 03-07-2020 Thread Starter
Junior Member
Join Date: Aug 2018
Posts: 11
Thanks: 5
Thanked 0 Times in 0 Posts
Rep Power: 0
Buying a boat in Croatia vat issues

Just wandering,
We are planning on buying a boat in Croatia. From a charter company. The vat is not paid.
I have 2 citizenship. One is from an EU country and the other from a non EU country where I also reside. (I am not an EU resident).
Our plan is to keep the boat in Europe for few months and then decide on whether to take it back home or leave the EU for a week and then bring it back to the EU. Would I have to pay the EU vat when I buy it or is there a way to avoid it?

Sent from my SM-N950F using Tapatalk
posailor is offline  
Sponsored Links
post #2 of 4 Old 03-07-2020
MarkofSeaLife's Avatar
Join Date: Nov 2010
Location: London!
Posts: 7,162
Thanks: 71
Thanked 321 Times in 292 Posts
Rep Power: 10
Re: Buying a boat in Croatia vat issues

It would depend on which country your other citizenship is. For example, if the other passport is British and you were flagging it in the UK you could be VAT free in the EU as long as the boat was in the EU at the Brexit date.

Other countries, it depends on where you want to be spending your most time.

You need to make this decision now or be ready to pay your 20% VAT.


Sea Life
Notes on a Circumnavigation:
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

People can say they want freedom, but offer them the keys to what chains them, a map to where they want to go,
And they'll turn it down for the cell they know
MarkofSeaLife is offline  
post #3 of 4 Old 03-07-2020
Senior Member
Join Date: Jul 2007
Location: Philadelphia
Posts: 1,312
Thanks: 0
Thanked 23 Times in 22 Posts
Rep Power: 13
Re: Buying a boat in Croatia vat issues

VAT will be charged upon purchasing the boat in Croatia an EU member, but will be refunded when the boat is exported out of the EU.

The boat will then be imported into the destination jurisdiction and import and other fees or taxes will be due to that jurisdiction.

Returning to the EU will then require compliance with regulations and fees dependent on any treaties between the destination jurisdiction and the EU.
Ulladh is offline  
post #4 of 4 Old 03-28-2020
Junior Member
Join Date: Mar 2012
Posts: 1
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 0
Re: Buying a boat in Croatia vat issues

VAT will depend on two things:
1) Flag Registration
2) Citizenship

If you EU flag it you will owe EU VAT
If you UK flag it, you will owe UK VAT, but no EU VAT provided you export the boat from the Schengen area within 60 days. You only need to go out for one day and then the boat can return for 18 month. Your UK passport will allow you to stay in the Schengen indefinitely for now (Brexit details pending).
If you USA flag it you will be liable for state sales tax in the state you register it and a Federal customs import tax of 1.5%
If you BVI flag it, you pay no VAT or sales tax. Since you hold a UK passport you can register it in your personal name and not have to set up a corporation. BVI registration will allow you to enter the USA on a one year cruising permit (renewable) which costs $12. You can be in the Schengen area for 18 months before you need to depart for 1 day minimum to non-Schengen area.

If you go to the UK, you'll need to check on their rules because I do not know them. There may be some time restrictions since the boat would be BVI registered and you hold a UK passport. Be careful if you don't want a surprise tax bill.

You will not be charged VAT at time of purchase if you purchase for export. All EU brokers know about this process.
MarkofSeaLife likes this.
Houston Sailor is offline  

Quick Reply

By choosing to post the reply above you agree to the rules you agreed to when joining Sailnet.
Click Here to view those rules.

Register Now

In order to be able to post messages on the SailNet Community forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
Please note: After entering 3 characters a list of Usernames already in use will appear and the list will disappear once a valid Username is entered.

User Name:
Please enter a password for your user account. Note that passwords are case-sensitive.


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On

For the best viewing experience please update your browser to Google Chrome