Please select your home edition
Edition
Abell Point Marina 728x90 Moor

Demystifying Croatian requests for taxation documents on yachts

by RYA on 29 Jun 2014
Croatia -a popular EU cruising destination SW
Boat owners are facing demands from the Croatian authorities for unfamiliar documentation; the RYA explains why and what action it is taking.

Any EU country has the right to ask for evidence of the 'community status' of a boat whilst it is in the EU, as it is the boat’s community status which entitles the owner to move it freely through the EU. In order for a boat to obtain community status, it must be VAT-paid (or deemed VAT-paid) and any applicable customs duty must have been paid.

The majority of EU countries seldom conduct such checks. Where checks are made, for boats of EU-origin the VAT invoice showing the amount of VAT that was paid and that the vessel was originally purchased in the EU (and was therefore not subject to customs duty) is usually sufficient evidence of the boat’s community status. For imported boats, evidence of payment of VAT and customs duty (if any) on import is required.

Why is Croatia demanding that boat owners have a T2L?
The requirement to be EU VAT paid has extended to Croatia since it acceded to the EU on 1 July 2013. In addition to requiring evidence of the VAT status of the boat, however, the Croatian authorities are also requiring separate evidence of the boat’s status for customs purposes before accepting that the boat has community status.

Despite the fact that the VAT invoice is also evidence of the boat’s status for customs purposes, we are informed that the Croatian authorities are insisting that boat owners have a T2L in addition to any VAT paperwork.

What is a T2L?
A T2L document is not normally issued to boats sold new within the EU as it is designed to establish the community status of a boat which has been imported. It can however be issued retrospectively by HMRC if a C88 (Status) form is properly completed. The form is validated by HMRC, which provides evidence that the boat it relates to is of EU origin and thus establishes its status for customs purposes.

Unacceptable situation
Marinas and shipping agents inspecting paperwork have been demanding a T2L for pleasure craft that will never have been issued with a T2L because they are of EU origin and therefore had community status from the outset.

A notice to vessel owners issued by Croatian Customs acknowledges that documents other than a T2L are acceptable to prove community status (e.g. a VAT invoice), but Croatian Customs is not ensuring that people inspecting paperwork (presumably on its behalf) understand this.

The RYA considers the situation pleasure craft owners find themselves in to be unacceptable. They are being penalised for not having a document which they have not and should not ever have been given.

Croatian Customs will not accept anything other than a T2L to prove community status and they are demanding this evidence in unusual circumstances such as requiring it before allowing owners to store their boat ashore.

RYA action
The RYA is currently lobbying the EU Commission and HM Revenue and Customs (HMRC) in an effort to encourage them to persuade the Croatian authorities to take a more pragmatic approach.

HMRC has indicated to the RYA that it will be taking the matter up on behalf of UK boaters and the RYA understands that HMRC will be contacting both Croatian Customs and the EU Commission.

Obtaining a T2L
It should not be necessary to obtain a T2L prior to going to Croatia, but any RYA member wishing to apply to HMRC for a T2L can contact T2L@rya.org.uk to obtain the necessary form and instructions on how to complete it, which the RYA has produced based on information received from HMRC.

The original hard-copy form has to be submitted to HMRC so it is not possible to provide it electronically. Please provide your RYA membership number and postal address when contacting us.
Abell Point Marina Splash 660x82BandG AUS Triton2 660x82Naiad/Oracle Supplier

Related Articles

David Staley new sailing manager at Middle Harbour Yacht Club
MHYC is pleased to announce that Victorian sailing administrator, David Staley, joined the Club as its Sailing Manager. Staley, who was also recently appointed Vice Chairman of the Para World Sailing Committee, started work on Thursday, and it was straight in the deep end, with the MC38 Autumn Regatta held on the weekend.
Posted on 26 Apr
Only two weeks remain on Marine17 early bird registration
Many businesses said that they are still reaping the benefits of Marine15 two years ago when they register for Marine 17 Conference hosts, the Boating Industry Association and the Marina Industries Association are confident they can deliver another rewarding instalment of Asia-Pacific’s largest recreational marine business and safety conference.
Posted on 26 Apr
NavPods available for Raymarine Axiom Multifunction Displays
NavPod has PowerPods that are compatible with recently released Raymarine Axiom 7-, 9-, 12-inch multifunction displays. NavPod, manufacturer of high-quality waterproof housings for marine electronics, announced today that NavPod has PowerPods that are compatible with the recently released Raymarine Axiom 7-, 9- and 12-inch multifunction displays. The units are available in high gloss white or the new Carbon Series and are ideal for any powerboat installation.
Posted on 26 Apr
Announcing new B&G® V20 VHF Marine Radio
B&G® is pleased to announce the new V20, a Class D DSC Approved, NMEA 2000® compatible, VHF marine radio. B&G® is pleased to announce the new V20, a Class D DSC Approved, NMEA 2000® compatible, VHF marine radio. The V20 features a dot white matrix LCD screen with inverted light mode, four backlit mic buttons and an easier front-mount installation with snap on edge bezels.
Posted on 26 Apr
First Winds of Change for 2017
The first eight-week Winds of Change program for 2017 was fantastic. The first eight-week Winds of Change program for 2017 was fantastic. Once more, students from Lake Illawarra High School came on board with SWD volunteers.
Posted on 25 Apr
Debbie says the 8thP with Insurance is Patience (Pt.II)
We’re back to keep exploring the nature of TC Debbie and how she came to tell us about the eighth P of insurance We’re back to keep exploring the nature of TC Debbie and how she came to tell us about the eighth P of insurance. We looked at what it was like to come into a disaster zone and now we see the evidence of those that did the right thing, and how the area is already on the road to recovery.
Posted on 25 Apr
Sirocco presents new model Sealegs and Brig at SCIBS
Designed and built in-house by Sealegs, the new 7.7m Sport D-Tube joins the company’s 6.1m model in the D-Tube range. New in 2017 is the Sealegs 7.7m Sport D-Tube, ideal for the coastal lifestyle, adventure nomads, anglers and those living and FNQ or regions where there is challenging terrain, crocs and reefs.
Posted on 24 Apr
New addition to North Sail for Volvo Ocean 65 racing machines
Their sails have powered eight out of nine Volvo Ocean Race winners since 1989-90, with Steinlager 2. Instead of assembling cloth panels into a particular sail shape, the Volvo Ocean Race sails are composites. This means that 3Di material 'tapes' are laid in a specific arrangement, offering stable structure to the sail where it is needed most.
Posted on 24 Apr
Northrop & Johnson set to showcase Australia's superyacht industry
The Manager of the nation’s largest superyacht charter fleet is heading to the world’s premier yacht charter show The Manager of the nation’s largest superyacht charter fleet is heading to the world’s premier yacht charter show in Spain this month to fly the flag for the Australian superyacht industry.
Posted on 24 Apr
Crewsaver appointed as Official Safety Provider to 35th America’s Cup
Crewsaver has announced today that it has been selected to be the Official Safety Provider to the 35th America’s Cup Crewsaver has announced today, 21st April 2017, that it has been selected to be the Official Safety Provider to the 35th America’s Cup, which will take place in Bermuda from 26th May to 27th June 2017.
Posted on 22 Apr