EU VAT Update: Information Affecting Non-EU Boats Visiting Europe
September 2016: Noonsite has been advised of circumstances where the period of Temporary Importation permitted to boats visiting Europe cannot be extended.
Published 8 years ago, updated 6 years ago
French Customs officials have informed a visiting cruiser that France does not permit the 18 month period of Temporary Importation (TI) to be extended. TI allows non-EU boats, with a non-EU resident to remain in the European Territory without paying VAT or import duty for a period of 18 months before they must either leave or be officially imported.
Many EU countries permit the extension of this period for another 6 months if the boat is ‘bonded’ (i.e. laid up in a marina or boatyard) and Customs are notified.
It is important to note that France does not recognize any bond documents issued by other countries either. So if planning to visit a French port more than 18 months after your original entry into the EU, ensure you reset the TI clock by a brief, recorded visit, to a country outside the EU (Tunisia, Morocco, etc.). Technically, Gibraltar does not count as totally outside the EU, although there is a lot of confusion among officials regarding this as it IS outside the EU Customs and VAT regulations. Many boats do take advantage of Gibraltar’s position, but arguing with any official who does not agree might not be easy.
For more information, see the Noonsite/European Union page.
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Related to the following Cruising Resources: European Union
Captian Haddock, I understand your argument and agree in principle. Nevertheless it cannot be, that during a circumnavigation one has to pay VAT in every visited country for his ship. So I still wonder, if there is a possibility to visit EU countries for a limited time with our sailing yacht. I am European, resident in Austria with Austrian passport, but live on our ship flying Malaysian flag. Actually we are in SE-Asia and would like to sail to MED and stay for a few month. Where I can get qualified information about VAT issues in this respect? So far I understand, there is one way: to hire a non-EU resident skipper for the time sailing in EU waters. It is not that, what a circumnavigator would like …
Hi Luckysailer, time has gone on and I wonder if you managed to visit EU waters and how the VAT situation developed itself for you? I am EU national but not currently EU resident, and considering to cruise Mediterranean waters starting next year and after that further afield, outside of EU waters… Trying to figure out if I must purchase a VAT paid boat or if VAT not paid with a registration outside of EU would be an option.. still cruising the Med for some time. Appreciate to hear about your experience!
You could all do something really radical which is to pay the VAT or other taxes that are due and not look for loop holes not to pay. Taxation is what keeps a country going
The answer depends of who will be skippering the boat while in the EU.
Only a non-EU resident, whether an EU citizen or not, is permitted to skipper a non-VAT paid boat in the EU.
Someone who is an EU citizen will need to be prepared to be able prove that they permanently reside outside the EU.
I believe that you are fine with this arrangement. If I understand, boat document will show only the LLC as owner without any mention of the LLC owners.
You will need a ‘skipper’s authorisation’ issued by the LLC to operate the boat and you need to be careful. If the skipper has a non-EC passport, he may sail the boat freely for up to 6 months and then needs to be replaced by an another non-EC skipper.
If the skipper is EC citizen the EC regulation is to pay VAT within 30 days of entrance!
This my understanding but do not take me to court on this…
Yes is can stay for up to 18 month as long as they are officially non eu residents. As also mention above only non eu residents can skipper the boat while in eu
I have a small issue that I hope someone would be so kind as to clarify for me. hypothetically speaking. I have a US fragged boat registered by and LLC in Delaware whose owners are both EU citizens but reside in the US. Can the boat while under US flag travel to the EU/ Mediterranean and remain for a period of less than 60 days without having to pay VAT?
The short answer is, no. For all practical purposes, Monaco is regarded as part of France.
Will a visit to Monaco be sufficient to get “re-exported”?
Mr. Karas everything looks ok. Your passport, though, should be stamped by Immigration at the airport of arrival in Greece. After that when you declare arrival from Turkey to restart the Transit Log you must have an exit stamp from Greek Immigration, entrance stamp from Turkey, exit stamp from Turkey and entrance stamp again in Greece.
Since you let your boat in a Marina, you let your Transit Log to Customs and the clock pauses.
Take care…
I am a US citizen, although my parents were Greek, and I travel with a US passport. I gave my passport to the authorities in Lavrion on departure and in Syros on arrival and in neither port was my Passport stamped.
Very strange. I am onboard the boat for 2 to 3 months every summer and I live the rest of the year in the US. While I am in the US the boat remains on the hard a Olympic Marine near Lavrion and the transit log is left at customs. Peter Karas s/y Daphne
The meaning of Transit Log is that the vessel is under Temporary Importation (total VAT relief of the vessel) in EU waters. To fulfill this status the user of the vessel MUST BE RESIDENT OF AN NON EU COUNTRY (living out of EU the last 185 days).
What happened there with those “folks” is that they helped you much more than you can imagine. Not knowing the terms and duration of your last Transit Log, I assume that you had two choices: either to clear the vessel to Customs by paying the VAT of the vessel or re-exporting the vessel. So, they suggested to you to go to Turkey (the most convenient geographically) and enter again Greek waters having new 18 month Transit Log. Those 18 months are for the vessel, NOT THE USER. There is just the opportunity to change user after 6 months, since the user -as I said- must be 6 months out of EU and 6 months cruising with this vessel.
If a user uses his vessel over 6 months then he doesnt fulfill the terms of Temporary Importation and Customs CAN bond the vessel until you pay the VAT of it.
Finally, Customs have helped you a lot with this “exercise” and you have to be much appreciated. What I dont understand is how you can make entry in any island from “Turkey” while you dont have exit in your passport from Turkish Immigration. If you ever go back to Turkey and see entry in Greece from Turkey without exit from there, they may penalize you seriously. In their position I would suggest declaring entry from International Waters -you can do this, tip.
Generally, keep in your mind Mr Karas, that if you live in EU more than 185 days for the last 12 months, then this vessel should be cleared by Customs and then have an unlimited Transit Log. Also, Customs have the right to bond a vessel for VAT clearance when it has been overused the status of Temporary Importation.
I have had a US flagged boat in Greece since 1985 and this year I had an unusual experience when I went to customs in Lavrion to pick up my transit log that I had left the previous year. The employee who I’ve know for several years told me that “things have changed this year, it’s more complicated”.
THe told me that I must leave Greek waters, i.e. go at least 6 miles from the Greek coast and then go to a port of entry to get a new Transit Log. In the past I’ve always gone to Turkey before my 18 months were up, but I was told in Lavrion that this was not necessary. I chose to go to Syros about 55 miles from Lavrion where my “reentry” into Greece was very easy.
Customs, Port Police and Passport control are all in one location and the staff was friendly and efficient. They asked where I had come from I replied Lavrion. The young lady filling out my new transit log “suggested” that I had come from Turkey so we put Cesme on the form. Although I speak Greek I’ve learned that it’s best to say as little as possible when dealing with these folks so I never learned the reason for this exercise. If anyone has had a similar experience I’d like to hear about it. Peter Karas s/y Daphne.
European law gives the right to the user of the vessel to extend the period of the 18-month Transit Log for additional 6 months… This is the right thing and it should be demanded.
Gibraltar does not belong in EU Customs and VAT area, so any vessel going there from EU is “re-exported”. Also, Channel Islands although they belong in EU Customs Area, are not part of EU VAT area, so again, vessels going there from EU are “re-exported”.
Finally, the time that the vessel is under Customs bond (boatyard etc) should not be counted, that’s why the users must give the Transit Log to local Customs when they let the vessel in the boatyard for the winter time…