VAT due on purchase of yacht promptly removed from Italy?

For what is such a minefield I would strongly suggest you pay for professional advice on this not rely on anonymous internet posts.

Google : VAT ADVISORS YACHTING and start asking your questions.

If You buy a non VAT boat in Europe and if You are able to proof Your intention to export this boat immediately outside the EU, you are exempted from VAT and other luxury taxes. This is valid for the whole EU. The trick is behind the words immediately and proof. This may vary from country to country and in Italy from harbour to harbour. I would talk (prior inking the contract) to the nearest office of the guardia di finanza / customs (in relation to the point of sale) and obtain the necessary export certificate.

Be carefull with the days layed out in the export certificate, until the boat has to be out of the EU and second leaving the EU means shortest way and most important not via other EU countries. If the boat will be transported out of the EU via ship transport, the leaving day in the paperwork will be the scheduled departure of the booked cargo vessel, as long as the boat is sitting on the hard or in the water in a freeport and is not used by the exporting buyer. Maintenance / repair work by third party (not the buyer) is allowed.

It makes no difference wheather it is a new or used boat. Non VAT boat means, the VAT was never payed in any EU country for this item. And if the boat returns to the EU too early, the VAT will fall due first port of entry in the EU. Any non EU resident can buy durable goods in Europe and get an VAT exemption or refund, when exporting these goods out of the EU.

We have recently bought a boat VAT and luxury tax free in Italy with scheduled flag state Malta (EU country). The VAT was then payed upon port of entry in Valetta, Malta. No problems at all. Just do not try any dirty tricks, it is not worse it. The back side of the medal is to expensive. If You are using a handling agency for the export, they will take care of all paperwork and will give You professional advice.

In rereading the original post, I double and triple what K1W1 wrote. One small detail can change the entire answer plus many aspects will need to be studied. For instance, you started with purchasing a used, non-VAT paid yacht in Italy. Do you mean never paid? What is a yacht doing in Italy on which VAT has never been paid? There will be so many intricacies to the issue regarding the entire history of the boat, the ownership, the seller, you, where delivered, what is promptly? Get a professional.

Are you using a broker? A good buyers broker should be able to put you in touch with experts in Italy.

It is possible to get a cruising permit for foreign flag yachts where you don't pay VAT unless you exceed the time in the EU, this may also include not selling it while in the EU.

That was my point too is that just the statement leads to the other obvious questions. All the specifics become hugely important in knowing what then can and can't be done and how to do it. These are the type situations that a single day can cost tens of thousands of dollars. Not even a professional can answer his question as asked. They would need to find out much more.

You can have a (used or not) yacht bought and staying its whole life in the EU without having to pay VAT, as long as it is exclusively used for commercial purposes and the owning company has opted for the VAT exemption in their company setup. Commercial ships for example, never pay VAT. VAT is only payed by the non commercial end user and owner operated companies without the VAT option.

A boat only used for charter, could be one of those reasons. But if You get cought like the famous owner of the yacht Force Blue, being Your own and only charter guest, You get introduced to the other side of the medal, the law enforcement. And as said above, getting professional legal advice is always a good idea.

VAT laws and rules have many traps, especially in southern Europe, where laws are interpreted by local authorities in sometimes rather unpredictable ways. Even large yachts with professional land based management like Octopus have been sitting in that fall and got chained. But if done correctly and according to the book, as VAT exemption and refund is in the EU laws, it is possible. As a ship and logistic operator based in the EU, it is our daily business.

I have seen some pretty fragile houses of cards in my life built around the use of private luxury, just to save taxes but the export of a durable good like a yacht, out of the EU with VAT exemption or refund is save and legal, if done correctly.

As I said in my initial post. Pay for advice. I will add that you should make sure it is from reputable specialists with experience win these matters as there are many who claim to know it all but in reality only know a fraction of the whole picture.

last year we bough a yacht in Italy to export to Carribean was easy for VAT free but was more simple personal name strait to previous owner to me juste broker to take care about all paper and we just did Sardegna to Genova to load the boat in Genova and one forwarder did all export paper ...

good luck

Hugues

boat was in Italy with Italiant owner but English flag, I made title during time to ferry and ship to carribean.
were do you want to bring you yacht?

Hugues

You now show even more reason to get professional advice making any insights you receive here or elsewhere of even less value and perhaps leading you far astray. You might want to make sure the combination of lawyers also check the complete history of the boat to make sure there is no reputation that will come back to haunt you.

Top if you make a stop to ST Barth tell us before we live onboard full year inside harbor.
that toke long time to make title and registration paper we get title at our name just before ferry the boat in Europe and we finalized flag registration paper during time where your yacht was on cargo to St Thomas.

With yacht are you in way to buy it?

Hugues