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.