Frequently asked VAT questions and possible answers:

The VAT status of a luxury vessel is a pivotal consideration during the purchase. With potential costs reaching up to 21%, meticulous handling is essential.

The fundamental principle dictates that privately owned vessels constructed post-1985 necessitate documentation validating VAT payment, while those predating 1985 enjoy exemption. This documentation typically encompasses the original invoice or a VAT declaration issued by customs.

When acquiring a vessel abroad, including within EU territories, the type of proof may vary, underscoring the importance of comprehensive due diligence and tailored preparation.

Please note, exceptions exist for all examples provided and should not be considered absolute truths. Reach out to us to address your specific VAT concerns.

My yacht, purchased in 1993 and having changed ownership multiple times, lacks an original purchase invoice and never underwent a VAT declaration process. The purchase agreement states that VAT has been paid. Is this correct?

This is unfortunately a common situation and it shows that there is a lot of ignorance surrounding this subject. Moreover, it is also difficult to solve. Unfortunately, the fact that the purchase agreement states that VAT has been paid has no tax value. Please contact us for your specific situation.

I'm considering buying a boat in Belgium, with a Belgian Flag Letter. The seller claims the Flag Letter serves as VAT proof. Is this accurate?

In Belgium, the Flag Letter is generally accepted as VAT proof. However, in the Netherlands, this document holds no VAT value, potentially limiting your options for future resale.

The seller of a yacht previously had the vessel under a lease arrangement. How does this affect me?

Lease constructions, including French, Italian, Maltese, and others, can sometimes pose challenges in verifying VAT payment conclusively. Please contact us to discuss your individual circumstances.

I'm an American and plan to sail my yacht in Europe. Will I need to pay VAT?

No, you can utilize a temporary exemption and sail in Europe for up to 18 months without paying VAT.

If I'm considering purchasing a yacht in England, originally delivered there in 2015 with VAT paid during its EU tenure, how does Brexit affect VAT obligations?

For affluent buyers, demonstrating previous EU residency before January 31, 2020 (Brexit date) confirms VAT payment. However, post-Brexit acquisitions in England necessitate importation, entailing VAT payment.

What are the VAT implications for my yacht, which has traveled globally for over three years, upon its return to the Netherlands, where VAT was already paid

Despite previous VAT payment, after three years, the scheme expires, necessitating VAT payment upon reintroduction of the yacht, amounting to 21%.

Do I need a VAT invoice for my boat solely intended for inland waterways?

While boats confined to inland waters within the EU typically don't undergo border checks, it's advisable to have a VAT certificate onboard. Though the burden of proof rests with customs, possessing documentation enhances compliance.

Is a margin invoice received for the sale of my boat with 0% VAT considered a VAT certificate?

Yes, a margin invoice serves as VAT proof. The absence of VAT implies it was likely previously paid, especially if sold by a company that acquired the boat from a private individual.

Please note, exceptions exist for all examples provided and should not be considered absolute truths. Reach out to us to address your specific VAT concerns.

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