Purchasing a new Yacht abroad... Irish tax implications?

LH2011

hi folks, were there any changes in the budget in relation to purchasing a new vessel abroad, within the EU, and paying the taxes VAT, etc in the local country , eg France / Holland... when the boat is taken back to Ireland, does any Irish taxes apply? or am I ok since taxes / vat were already paid in an EU country?


thanks

Tabnabs

If you're buying a new boat abroad, I'd guess you're spending quiet a bit of money. Probably best to get qualified advice rather than asking random people on the net But I do know the manufacturers themselves (if you're buying from them) will have most of the answers you need.

fergal.b

This is from the ISA site.
VAT

Guide To Boat Purchase and VAT

Second Hand Boats within the EU
The key rule of buying a second hand boat anywhere in the EU is to ensure that is VAT compliant. There are two main categories in regard to VAT:
1. Boats in use prior to 1985 and in EU waters on 31.12.1992. Such vessels are normally deemed to be EU VAT paid and a VAT liability will not arise as a result of a transfer of ownership within the EU.
2. With any other vessel the vendor should be able to provide paperwork dating back to the original sale when new, proving the payment of VAT on the new vessel. Purchasers should be wary if no paperwork is available, particularly if the vessel has been owned by a company at any stage.

New Boats within the EU
1. New Vessels less than 7.5m in length
These vessels will normally be VAT paid at point of purchase and no liability will arise on their importation into Ireland. If imported free of VAT than the VAT liability arises on their importation and a declaration must be made to the Revenue Commissioners
2. New Vessels over 7.5m in length
Such vessels must pay Irish VAT on their importation into Ireland.

Vessels from Outside the EU
New vessels from outside the EU must pay VAT on their importation into Ireland. They must also comply with the EU Recreational Craft Directive.

For further information:
VAT

RCD
Contact RYA - +44 238 0627400

These notes are given as a basic guide. No responsibility is taken by the ISA for the continuing accuracy of this information. In regard to VAT liability potential purchasers are strongly advised to contact the VAT division of the Revenue Commissioners.

Tabnabs

The ISA info is an excellent starting point, however a friend of mine bought a Malo 42 brand new and it is a little more complex than the simple ISA explanation.

LH2011

thanks for the input, it is not a simple clear cut thing,

yes the vat is a sticky one,

on my current boat, I always carry a few laminated copies of the original sales invoice that i got when bought boat new in Ireland, the dealer recommended that i do this, in case i was ever queried about VAT payment, if i was questioned in any port, while overseas etc, that was the original reason that i bought in Ireland originally.

LH2011

ok snookered so, got this info from a friend abroad,



It explains how VAT applies to new means of transport.
In the EC most goods are charged with VAT in the country in which they are purchased. However for a new vehicle, boat or aircraft, VAT will be due in the Member State of destination if:

• it falls within the definition of 'New Means of Transport' (NMT), and
• it is sold to a customer who intends to take it to another Member State.

The definition of a Means of Transport within this notice and when it is ‘New’ is common to all EC Member States and is only for the purpose of determining when VAT is due.


other way is buy a second hand boat with VAT paid status, and can bring to Ireland with no VAT liability.

ISAW

There the Eu and non EU "third country" flement.
There is also the idea oif you later take it to another EU country without the proof of origin the local coustoms might arrive lookiing for money after six months.
The is also the CE mark - a quality level.

This guy covers a lot of that:
For example Spain: http://www.michaelbriant.com/spain_boat_rules.htm


http://www.michaelbriant.com/boat_import_ce.htm

What all that adds up to is that in order to import the 'bargain boat' from the USA or elsewhere, in addition to paying the VAT on the 'current' value of the boat, you have to get a CE Mark for it.

So the costs associated with bringing a 45ft sailing yacht into the UK or any EU country are these:-

Cost of transport/shipping from USA to Europe

£6,000 or on own bottom for a lot less

VAT on valuation – the Customs guys will probably value the boat on the price you gave for it in the UK… Whilst different VAT rates exist throughout the EU, it is the ‘valuation’ that probably tips the balance.


on a £70,000ish figure say £12,250

CE marking the boat £6,000 worst case scenario

Possible engine change £10,000 worst case scenario

So in the worst case the cost of purchasing the £70,000 has risen by £34,250 to £104,250 but with a brand new motor and 100% legal.

LH2011

ISAW wrote: »

There the Eu and non EU "third country" flement.
There is also the idea oif you later take it to another EU country without the proof of origin the local coustoms might arrive lookiing for money after six months.
The is also the CE mark - a quality level.

This guy covers a lot of that:
For example Spain: http://www.michaelbriant.com/spain_boat_rules.htm


http://www.michaelbriant.com/boat_import_ce.htm



So the costs associated with bringing a 45ft sailing yacht into the UK or any EU country are these:-

Cost of transport/shipping from USA to Europe

£6,000 or on own bottom for a lot less

VAT on valuation – the Customs guys will probably value the boat on the price you gave for it in the UK… Whilst different VAT rates exist throughout the EU, it is the ‘valuation’ that probably tips the balance.


on a £70,000ish figure say £12,250

CE marking the boat £6,000 worst case scenario

Possible engine change £10,000 worst case scenario

So in the worst case the cost of purchasing the £70,000 has risen by £34,250 to £104,250 but with a brand new motor and 100% legal.

i am purchasing in the EU to Avoid, any RCD, electical, or other confirmity issues. in europe the RCD, http://ec.europa.eu/enterprise/sectors/maritime/recreational-craft/index_en.htm