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  1. #1
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    Default Croatia EU Accession VAT - Information Pool

    Anyone interested in maintaining a thread to pool information on potential VAT (PDV) charge on Foreign Flagged yachts based in Croatia? Croatia may join the EU in 2011 or 2012 and non EU VAT paid yachts will require to become VAT paid if they are to remain in Croatian waters (or alternatively flee down the coast en masse to Montenegro, Albania or Turkey!).

    So far I have not been able to find out the intentions of the Croatian Government. HMRC have stated that individual accession countries can create their own rulings on this. Croatian VAT is currently 23%.

    On EU accession in 2003 Cyprus and Malta set special "deemed VAT paid" rates of 0% and 5% respectively, for "boats in Residence" prior to EU accession date. (Malta extended this rate beyond this?). Are there any national organizations who can lobby the Croatian Government for similiar concession for the numerous boatowners who have supported Croatian Marine Tourism for many years (forlorn hope)?

    No doubt affected boat owners of various nationalities will be able to add to this blog over the next coming months when more information comes to hand.
    Last edited by Windlass100; 14-04-10 at 17:02.

  2. #2
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    Default The European Parliament has given Croatia the green light

    The European Parliament has given Croatia the green light to join the EU. Finally. That if the EU is still a club that Croatia wants to join. What would that mean for VAT payment on boats in Croatia?

  3. #3
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    Not sure that there'll be enough news to keep the thread going for two years but I'm very interested in the options.

    Our boat is typical ex-charter 12 years old, Croatian flagged until e bought it last year and were obliged to reflag it British, which I'm sure will restart any clock.

    We actually want to pay the VAT and soon ,just to get the uncertainty out if the way while we still have some cash, and also so we can cruise to EU countries without wondering what they will do when they see the ships papers. As I said in another thread we bought the boat in a shocking condition which will take years to requip and fix but that cost us much less to buy than a normal ex-charter boat of the same age and model. Being valued in a couple of years time may cost us a lot if we continue to improve it.

    Don't want to get into Greek or Italian bureaucracy either but there may be no alternative except to wait for Croatian accession.

  4. #4
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    Why are boats being singled out, do all Croatian jewellery, cars,TV's, HI-Fi,Cameras have to become VAT paid. Or it another soak the "Rich" with their luxury yachts.?
    Unless you’re American it's not a “Shopping MAUL”, it’s a Shopping Mall (as in Pall Mall)

  5. #5
    Barnac1e's Avatar
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    Quote Originally Posted by Windlass100 View Post
    On EU accession in 2003 Cyprus and Malta set special "deemed VAT paid" rates of 0% and 5% respectively, for "boats in Residence" prior to EU accession date. (Malta extended this rate beyond this?).
    Karl-Heinz Beständig, editor of the '888 Hafen' handbooks issues a regular newsletter (in German) and has addressed this subject. He reported early this year that the Croatian finance ministry has already made a statement on VAT payments for EU-registered boats, ruling out the Malta solution and that all owners will be taxed at 23% of the 2013 value.

    This is also what happened when Slovenia acceded in 2004, which caused quite an exodus to Croatia at the time. Those tax asylum-seekers better start their engines for a further emigration.

  6. #6
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    Quote Originally Posted by Barnac1e View Post
    Karl-Heinz Beständig, editor of the '888 Hafen' handbooks issues a regular newsletter (in German) and has addressed this subject. He reported early this year that the Croatian finance ministry has already made a statement on VAT payments for EU-registered boats, ruling out the Malta solution and that all owners will be taxed at 23% of the 2013 value.

    This is also what happened when Slovenia acceded in 2004, which caused quite an exodus to Croatia at the time. Those tax asylum-seekers better start their engines for a further emigration.
    Italy, here I come.......
    The best argument against democracy is a five-minute conversation with the average voter.

  7. #7
    Baggywrinkle's Avatar
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    Quote Originally Posted by Seven Spades View Post
    Why are boats being singled out, do all Croatian jewellery, cars,TV's, HI-Fi,Cameras have to become VAT paid. Or it another soak the "Rich" with their luxury yachts.?
    The reason boats are a special case is as follows:

    You can buy cars, TVs, HiFis etc. in Croatia as an EU citizen and claim back the VAT when you export the goods (take them across the border back to EU land). Unfortunately because this is normally done by road there is someone waiting to nab you on the EU side to pay the EU VAT or Import duty.

    With a boat you can buy in Croatia VAT free and export the boat. You don't then however necessarily need to cross an EU border and import, you can turn round and go back into Croatia and enjoy a VAT free boat, kept in Croatia as you are not a Croatian subject.

    It's a moot point if you can have VAT free jewelery, cars, TVs etc in Croatia as an EU citizen.

    Of course all Croatians have already paid croatian VAT on their possessions so will be unaffected.
    The best argument against democracy is a five-minute conversation with the average voter.

  8. #8
    Barnac1e's Avatar
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    Quote Originally Posted by Baggywrinkle View Post
    Italy, here I come.......
    Whoa, see this thread in the Liveaboard forum http://www.ybw.com/forums/showthread.php?t=295890.

    I haven't worked out any exact costs of this new, Italian, daily, boat tax, but an Italian friend in my marina, who has a boat the same length as mine (9.4m), wrote to me that had our boats been 60cm longer to fit into the minimum taxable band, we would have effectively doubled our mooring costs for the year.

    So I doubt that we will see the floating, VAT tax asylum-seekers that flock back and forth and up and down the Adriatic as each country accedes to the EU, will be returning to Italy. The Guardi di Finanza will just devour them for breakfast.
    Last edited by Barnac1e; 11-12-11 at 07:13.

  9. #9
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    I thought the date was set for 2013.

  10. #10
    Barnac1e's Avatar
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    Quote Originally Posted by mocruising View Post
    I thought the date was set for 2013.
    Correct. The accession agreement was signed two days ago. I quoted a report in another thread http://www.ybw.com/forums/showpost.p...1&postcount=98.

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