If you bought a new boat over 7.5 metres in length, paid IVA or VAT in any EU member state other than Portugal and had the boat delivered direct to Portugal – beware – Portuguese Customs may be after you.
There are special EU laws governing new means of transport. They say that the acquisition of the new means of transport by entities or single persons in two different member states, is subject to IVA or VAT in the member state to where the vessel is located when dispatch or transport to the person acquiring them ends.
Even if you have paid IVA or VAT in another country, you are still liable to pay in Portugal and failure to comply could result in fines, impounding of your boat or other such measures. You should be able to recover IVA or VAT from the member state where it was paid, as such payment was contrary to the Law.
Owners of relevant boats entering Portugal should complete a Declaraçao Aduaneira de Embacacoes e aeronaves (DAED).
A used boat entering Portugal where VAT was paid anywhere in the EU is not affected by this Law – the definition of a used boat is one that has been used for more than three months and 100 hours. Proof of VAT or IVA having been paid remains a vital document to keep with the boats papers.
Contributed
Iates Iberica Lda/Iberian Yacht Services is the Algarve’s longest established Yacht Management and Maintenance Company (founded 1985) as well as being international yacht brokers. They are located at Loja 2, Tivoli Marinotel, Marina de Vilamoura – 289 380 277, [email protected]
