How do you handle the VAT-problem…

…when staying longer at the same place, for example when you left Wind Horse in UK during winter 2009? As far as I’m informed, VAT(possibly plus customs fees & extra taxes) is charged if you stay > 3 months in the EC. How do other countries deal with this? If you want to talk about it: was VAT actually paid for your ships, or is it possible to circumnavigate the whole problem?

Hi Harald:

In the UK there is a very specific procedure to be followed, which the good folks at Berthons handled for us. They notify customs that the vessel is in their custody.However, there is also a specific time limit – the exact time frame of which I do not recall – after which the boat must be out of the EU or VAT will be charged. I think it might be 18 months for non-EU residents. But this should be checked.

Posted by Steve Dashew  (April 4, 2011)

3 Responses to “How do you handle the VAT-problem…”

  1. Gerhard Says:

    Hi Steve,

    I’ve seen oin some blogs or in, in the Med some countries could have a limit of 6 month.
    Payed VAT should be accepted in other EU parts, so look for VAT in different countries.

    Luxembourg has nice conditions, if you register a shipping company (holding – tax with deficit carryover for ten years).

    Windhorse is registered in CI, is this not British (and so a part of the EU)?

  2. Ed Says:

    I believe (but it would need checking) that a trip to the Channel Islands (Guernsey/Jersey) resets the VAT clock as they are not part of the UK, and not subject to VAT.

  3. Steve Dashew Says:

    Yes Ed, this is what Berthon’s had us do tp restart the VAT clock.