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Boat from Gibraltar no vat payed

Asked in Marine for Gibraltar

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I'm looking to buy a boat that was bought in Gibraltar and has no vat payed on it but has been in Spain for years. Will I need to pay vat on this boat?
 
Gibraltar Spain
 
Posted by Peter.brown on Aug 29, 2014 at 08:00
 

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The law is:
* Spain is in the VAT area
* Gibraltar is not
* if the boat is in the VAT area for less than 18 months, then it is a Temporary Importation, and VAT is not payable.
* if the boat is staying in the VAT area then VAT is payable.

Now the enforcement of the law is:
* Spain is known NOT to enforce VAT rules
* as well as Gibraltar (because there is no VAT there).

A boat is often a depreciating asset...so paying VAT after 2 years on a small boat which value cannot be assessed with exactness could also be a strategy (for paying or not paying VAT).

If you plan to sail in Spain or Gibraltar only: you can be under the radar, just don't put your name as an EU citizen as the owner, but put a Gibraltar company or non-EU company.
If you plan to travel to France or Italy (where they enforce VAT): sail to Gibraltar, refuel or go to a marina, keep the receipts,and just make the proper documents for the Temporary Importation beforehand (in Spain).
 
Posted by prominee.com on Aug 29, 2014 at 22:32
 

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