No VAT charge on foreign boats older than 8 years

A VAT on transport and boats will not be charged during their first launch if the date of the first use exceeds eight years from the date of Croatia's accession to the European Union, or if the vessel is older than eight years, starting from 1 July of this year

  The tax and customs obligations of foreign vessels temporarily or permanently residing within the Croatian territorial waters upon Croatia's accession to the European Union will undergo a change.

  According to information provided by Nautica Portal, which was received from an administrative assistant in the Department of Tourism in the CCC, Art. 138 of Draft Amendments to the VAT on which the Croatian Parliament should vote soon stipulates that it will not charge a VAT on transport (and boats) during their first launch if the date of the first use of the means of transport exceeds eight years from the date of Croatia's accession to the European Union, or if the vessel is older than eight years, starting from 1 July of this year.

  Owners of vessels which up to this date remain in a temporary importation procedure and decide to let their vessel ride freely in Croatia are required to submit the customs declaration, in accordance with the customs legislation of Croatia and the EU, and undergo regular import customs procedure.

  If the vessels are not of European origin or don't have evidence of European preferential origin on import customs clearance for them the rate of duty will be determined by the Common Customs Tariff of the EU, which will enter into force upon Croatia's accession to the EU, according to which the tariff rate can be calculated as 1.7 percent or 2.7 percent of the customs value of the vessel.

  If the vessels meet the requirements of Article 138 of the Draft Amendments to the VAT, or if they are older than eight years, during the release into free circulation they will not be charged a VAT.

  It still hasn't been accurately determined whether the exemption from VAT will only apply to vessels registered in EU member states, or if the decision will be extended to vessels registered in third countries.

  As for the registration of vessels in the Croatian Register of Shipping, from the customs and tax standpoint a vessel for which you pay a VAT and customs is treated as domestic goods, regardless of the fact if the vessel hasn't been registered in the Register of the boat or yacht registry yet. Such vessels have the status of domestic goods, and on the day of Croatian accession to the EU have the status of Community goods.

 Following importation the boats can be kept without registration in the marinas. However, the owners can not use the boat without a valid registration, which means that by 1 July of this year they can navigate and use them only when the vessel is registered in the Register of Croatian boat or yacht registry, and after 1 July and after the Croatian accession to the EU, the vessel may be registered in any EU register.

  Immediately after July 1, 2013, the customs offices will conduct inspection of bonded warehouses or vessels that were prior to Croatian accession to the EU in the temporary importation procedure, which is an obligation that derives from our rules and regulations of the European Union as a single customs territory.