Does anybody have recent information on the EU VAT for yachts? Especially minimum thresholds? We have a modest 1990, 31’ yacht that I brought into the EU in the Azores last May. If I do the math, my 18 months is up ~September this year. The boat is currently wintered in Italy and we’re planning to sail to Greece this spring. We may sail up to Albania to reset the boat’s VAT calendar but I’d rather not have to.

I purchased the boat in 2017 for 50,000 USD and am hoping the EU authorities would deep she’s of such low value that it’s not worth imposing the VAT on her. I also heard from someone that 1985 was a cutoff date (boats older than 1985 vintage weren’t taxed).

Is thee VAT 20% of “value?” How is value calculated? If it’s very low, I may just pay it. 

Thoughts appreciated. Thanks!

If you bought the boat in the Azores is it not EU VAT paid?

If you sail to Greece, they take the view that you must have traveled through international water to get there and have therefore you have reset the 18 month clock. As a 3rd country vessel you must get a limited transit log within 24 hours of entry. While the boat can now stay in Greece (or the EU) for 18 months (up to 24 if it's taken out of use) the crew can't.

There is no notion in EU law that recognizes sailing to and from a non EU country as a valid means of proof of crossing the EU external border. The Code only recognizes the crossing of the international sea boundary.

Andy, Interesting, thank you. Sorry for the confusion…I BROUGHT the boat into the Azores (i.e., sailed her in from Bermuda to Horta) and actually arrived into Horta 15 June 2022. From there I sailed (through international waters) from the Azores (Portugal) to Lisbon (Portugal) arriving mid-July 2022. I appreciate the other information.

PS: If it matters the boat is US flagged and purchased in the US and no EU VAT paid on it

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Daniel Coate - 28 Mar 2023

Andy, Interesting, thank you. Sorry for the confusion…I BROUGHT the boat into the Azores (i.e., sailed her in from Bermuda to Horta) and actually arrived into Horta 15 June 2022. From there I sailed (through international waters) from the Azores (Portugal) to Lisbon (Portugal) arriving mid-July 2022. I appreciate the other information.

PS: If it matters the boat is US flagged and purchased in the US and no EU VAT paid on it

My lisdexia getting the better of me!
Counter intuitively, not having EU VAT might makes things simpler. Particularly in Greece where they love to find reasons to fine you. Without tax papers there's no question and you just have to leave and return before the 18 month limit. Greece is the only country that has evidential paperwork... the Limited Transit Log. Italy might have similar, but information about it is sketchy.

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Andy.Todd - 28 Mar 2023

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Daniel Coate - 28 Mar 2023

Andy, Interesting, thank you. Sorry for the confusion…I BROUGHT the boat into the Azores (i.e., sailed her in from Bermuda to Horta) and actually arrived into Horta 15 June 2022. From there I sailed (through international waters) from the Azores (Portugal) to Lisbon (Portugal) arriving mid-July 2022. I appreciate the other information.

PS: If it matters the boat is US flagged and purchased in the US and no EU VAT paid on it

My lisdexia getting the better of me!
Counter intuitively, not having EU VAT might makes things simpler. Particularly in Greece where they love to find reasons to fine you. Without tax papers there's no question and you just have to leave and return before the 18 month limit. Greece is the only country that has evidential paperwork... the Limited Transit Log. Italy might have similar, but information about it is sketchy.

Hi Andy,
Italy had (10-15 years ago) a Constituto (I am sure I spelled that wrong). Italy made it very hard to acquire, but we usually succeeded. We were asked for it 2-3 times: once by an official who had clearly just had a fight with his wife or his boss. He fined 2-3 other foreign flagged boats on the wharf (not much $$) and was clear not happy that we had one. Never did understand the point of it and nor could the vast majority of officials we went through before getting one each year.
My best, Dick Stevenson, s/v Alchemy

Thanks Andy and Dick. We spent a lot of time in Italian waters last year and no officials ever asked us for anything related to a Constituto. However, after we left our boat in Gaeta, Italy last fall (BNFG marina), the marina concierge said that the local customs officials wanted to talk to me. I told the concierge I’d be happy to visit them this spring when I return…fingers crossed.

Last year a dear US/OCC friend with lots of Italian experience (she now had Italian residency), recommended two things to us when cruising Italy: 1) plead ignorance, 2) proclaim your love of Italy and all things Italian…it’s worked so far. ;-

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Daniel Coate - 29 Mar 2023

Thanks Andy and Dick. We spent a lot of time in Italian waters last year and no officials ever asked us for anything related to a Constituto. However, after we left our boat in Gaeta, Italy last fall (BNFG marina), the marina concierge said that the local customs officials wanted to talk to me. I told the concierge I’d be happy to visit them this spring when I return…fingers crossed.

Last year a dear US/OCC friend with lots of Italian experience (she now had Italian residency), recommended two things to us when cruising Italy: 1) plead ignorance, 2) proclaim your love of Italy and all things Italian…it’s worked so far. ;-

Hi Daniel,
Yes: The “dumb American” card has been played on a number of occasions: and for the most part it was an accurate statement and not a ploy.
We were asked for our “Constituto” rarely: and it may no longer be part of the cruising picture.
And, yes, say wonderful things about the host country: usually pretty easy.
And we do try to work in good faith and we always kept our notes, research and paperwork to document this. Often, even if we inadvertently transgressed some rule, showing our efforts to work in good faith turned the tide in our favor.
Good luck upon your return.
My best, Dick Stevenson, s/v Alchemy

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Dick - 29 Mar 2023

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Daniel Coate - 29 Mar 2023

Thanks Andy and Dick. We spent a lot of time in Italian waters last year and no officials ever asked us for anything related to a Constituto. However, after we left our boat in Gaeta, Italy last fall (BNFG marina), the marina concierge said that the local customs officials wanted to talk to me. I told the concierge I’d be happy to visit them this spring when I return…fingers crossed.

Last year a dear US/OCC friend with lots of Italian experience (she now had Italian residency), recommended two things to us when cruising Italy: 1) plead ignorance, 2) proclaim your love of Italy and all things Italian…it’s worked so far. ;-

Hi Daniel,
Yes: The “dumb American” card has been played on a number of occasions: and for the most part it was an accurate statement and not a ploy.
We were asked for our “Constituto” rarely: and it may no longer be part of the cruising picture.
And, yes, say wonderful things about the host country: usually pretty easy.
And we do try to work in good faith and we always kept our notes, research and paperwork to document this. Often, even if we inadvertently transgressed some rule, showing our efforts to work in good faith turned the tide in our favor.
Good luck upon your return.
My best, Dick Stevenson, s/v Alchemy

Yeah Dick…agree 100%. It’s a funny cocktail of research and documentation, combined with confusion and ignorance, garnished with a hearty, polite and respectful love of all things Italian that seems to carry the day. Complete ignorance would come across as flagrantly not caring about their rules. But, if you just researched and researched and waited for some magic, bulletproof answer—you’d never leave your home port. Fair winds!

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Daniel Coate - 29 Mar 2023

Yeah Dick…agree 100%. It’s a funny cocktail of research and documentation, combined with confusion and ignorance, garnished with a hearty, polite and respectful love of all things Italian that seems to carry the day. Complete ignorance would come across as flagrantly not caring about their rules. But, if you just researched and researched and waited for some magic, bulletproof answer—you’d never leave your home port. Fair winds!

Hi Daniel,
EU VAT is either calculated based on the commercial value of given model or similar and customs agents do have spread sheets with the value of recent production boat models or by a survey evaluation or by Bill of Sales. Given the age you mention of your vessel probably Bill of Sales.

Now about the Italian Constituto, it was incorrectly said that it may have been abolished or that is difficult to get one (you do need to go to the right Guard Costeria office though). Unfortunately not only is alive and kicking Guardia di Finanzia might asked you about it and give you the ticket for not having (we were asked about it a few times).

I wrote all our finding and experiences on this including maps of the ports we visited and add to get stamps etc on the below link:

https://www.svthedream.com/post/costituto-in-arrival-per-il-naviglio-da-diporto-ships-arrival-declaration-transit-log

Greece and Malta also have transit logs. This link below regarding the Greek TL might interest you:

https://www.svthedream.com/post/getting-stamped-in-the-greek-transit-log

As for the remaining EU countries it is the owners responsibility to make evidence that the VAT exemption rules are followed (18 months exemption), my recommendation and it has been put to the test a few times with success is to always keep a folder together with the boat documents with marina receipts and discharge papers (if any) from any non-EU country your vessel enters. Important note is, said documents should have boat name, registration number together with flag. Usually as soon as the conversation goes towards the VAT I just pull the folder out and kill any doubts right there and then.

Cheers