New VAT and customs procedure for tenders
- Procedures differ depending on if the vessel is owned by an individual (natural person) or a legal person.
- For an individual (natural person), the value of the tender needs to be determined first. That value will be used to calculate the VAT and customs duty fee. The owner will then pay 20% for the VAT plus 1.7% for the duties.
- For a legal person, the same procedure applies but the owner would only pay the customs duty fees, with the VAT to be paid through a declaration from the tax representative.
- Tenders will only be registered as VAT paid once the tax declaration has been filed and the VAT paid the following month.
YMCA explains how to pay VAT on your tender!
As the season is starting, we wanted to remind you the new procedures in order to pay VAT and customs duties on a tender…
We wanted to remind you of the new procedures to pay VAT and customs duties (if less than 12 meters) on a tender.
The procedure differs depending on the type of ownership of the yacht.
- If the boat is owned by an individual (natural person):
We need to determine the value of the yacht with a recent survey or a recent purchase invoice (less than 6 months)
It is possible to use a surveyor who will determine the value (he must be established in the European Union).
This value will be used by the customs to calculate the VAT and the customs duties (20% for the VAT and 1.7% for the duties in France). The VAT is calculated on the price of the tender + the duties (1.7%). In other words, VAT is also paid on the duties.
Once the money is wired to the customs, you will receive the customs declaration meaning that the yacht is now VAT paid and duty paid.
- If the tender is owned by a legal person:
The same procedure as above will apply but only to pay the customs duties, the VAT will need to be paid through your tax representative after the importation declaration has been filed. This means that the tender will only be considered VAT paid once the tax declaration has been filed and VAT paid the month following the importation. Please check with your tax representative for more details on this procedure.