sail-world.com
 
 
News Home Boats for Sale MarineBusiness-World Sail-World Racing Cruising Int Magnetic Is RW Photo Gallery FishingBoating
Sail-World.com : Croatia, sailing magnet now, but what after she joins the EU in July?
Croatia, sailing magnet now, but what after she joins the EU in July?


'web Croatia sailing aerial'    .

Croatia is a drawcard for cruising sailors from all over the world. They float around from other European ports, they arrive as circumnavigators with Croatia one of their 'must sees', or they fly from America and Australia to charter yachts around Croatia's charismatic and sailor-friendly coastline. But in a few days time she will become a member of the EU. That may mean a lot for Croatia, but what will it mean for the cruising sailor?


Croatia sailing -    
Here Ayuk Ntuiabane from the Isle of Man financial services firm Moore Stephens, writes of the ramifications that will affect all visiting leisure sailors.


Why is the country so popular with sailors? First is the country’s natural assets. With its long coastline, myriad coves, islands and exceptional water, Croatia has been a magnet for yachting in the periphery of the EU. Second, the island archipelago has made much of these natural assets, which it promotes vigorously to the yachting industry.

Third, lying just on the other side of Italy where EU VAT was never an issue, Croatia provided the nearest foreign shore for yachts to touch on that side of the Adriatic or the Med in order to evidence tax-free export from the EU or tax suspended temporary admission from outside the EU. Thus, despite being outside the EU’s fiscal fence, Croatia seemed to pick up the rebound benefits of EU yachting.

Fourth, Croatia’s own yachting taxation regime will remain largely intact, on top of the EU VAT regime it must adopt.

Fifth, Croatia introduced in November a new reduced VAT rate on yachts which, while turning heads, has created a bit of a stir that has landed the country in a tricky place.

But who goes there after July 1 has to learn to cope with a fairly peculiar administrative environment characterized by officialdom, special permits, lengthy procedures and numerous non-tax fees. There are arrival and departure reporting obligations and a ubiquitous vignette system that is charged per passenger or crew and for any change of same.


Sailing the Adriatic Coast of Croatia -  Sunsail  
There are fees associated with permits and renewed permits for foreign vessels to navigate in internal waters and fees to navigate in the territorial sea, safety-of-navigation fees, light dues, information chart fees and government administration fees. With relatively few mooring and related facilities, daily mooring rates can also be steep.

These aspects are not new, but the advent of traffic tracking systems -- thanks to the requirement for EU accession states to have radio-navigation systems and a Vessel Traffic Monitoring and Information System (VTMIS) -- will give Croatia the capacity now to enforce these fees and costs on even transiting yachts.

And it came as no surprise, too, that a tax reform in February 2012 included an increase in the general VAT rate from 23 percent to 25 percent.

Then amidst all this, Croatia slipped in a 5 percent VAT rate for importing pleasure yachts. Until May 31, any EU or non-EU vessels that were temporarily admitted into Croatia could file a customs declaration and pay customs duty and VAT. Customs duty would be payable at the rate of 1.7 percent or 2.7 percent on the customs value of the yacht, unless the yacht could prove that it was built in an EU, CEFTA, EFTA country or Turkey. VAT would be charged at 5 percent of the customs value inclusive of the customs duty rate.

At first glance, the interim offer to pay VAT at only 5 percent stretched credibility. However, in a context where the status of all goods in the country must be regularized in short order by the time they merge into the enlarged EU VAT system, it was not out of place.

Croatia’s Accession Treaty signed Dec. 9, 2011, includes stop-gap measures concerning goods in storage or in other national customs regimes. If these goods are deemed VAT paid by Croatia before her joining then they fall to be treated as being validly VAT paid throughout the EU after Croatia joins. There are precedents in the EU concerning vessels in similar situations.

Yachts sailing in front of the old city walls Dubrovnik Croatia - -  Maggie Joyce - Mariner Boating Holidays ©  


The real surprise though is that not so many pleasure yachts have winged it to Croatia to avail themselves of the opportunity. Is it unfortunate timing? Or is it the aforementioned reputation for petty officialdom?

Perhaps the likeliest explanation is the cold comfort poured over the measure by the European Commission. Commenting on the matter in its final Monitoring Report on March 26, the commission is admonishing at best: 'Croatia introduced in November 2012 a new reduced VAT rate on yachts (sport and pleasure boats), which is contrary to the EU acquis but which will be aligned by accession. This may encourage releasing boats for free circulation in Croatia before accession. Croatia should without delay reverse this situation.'

Croatia will, of course, 'reverse this situation' by the date it integrates itself fully into the EU machine – after all, that 5 percent VAT rate for pleasure yachts was always designed to be short-lived.


by Ayuk Ntuiabane/Sail-World Cruising

  

Click on the FB Like link to post this story to your FB wall

http://www.sail-world.com/index.cfm?nid=111200

3:50 AM Tue 25 Jun 2013GMT


Click here for printer friendly version
Click here to send us feedback or comments about this story.







Sail-World Cruising News - local and the World





Barnacle Busting by Neil and Ley Langford,




Polar research: Six priorities for Antarctic science by Mahlon C. Kennicutt II and colleagues,




































Risks to penguin populations continues by British Antarctic Survey,






Follow these tips when anchoring by Alex and Daria Blackwell,








Galley Guys meet the Spice Lady by Greg Nicoll, Andy Adams and John Armstrong,








If all else fails read the instructions!!
ARC Baltic fleet cruising and anchoring in the Finnish archipelago
Phuket Yacht Show: new kid on the block taking on PIMEX? *Feature
Endangered species are like Movie Stars - Charlie Sheens and Tom Hanks
Vanuatu Customs making life easier for visiting cruising yachts
Multihull Central - Covering all the bases *Feature
Flags at Sea, an infographic by John Tissott
Cruising lessons from ocean racers
Sydney International Boat Show - Day 2 *Feature
Marine Rescue volunteers celebrate new unit and $120,000 vessel
Procedures set out for waterborne visitors to Vanuatu
17-year-old RNLI volunteer saves child in first rescue mission + Video
Teen names latest RNLI Shannon class lifeboat in Poole + Video
Fascinating opportunity with OceansWatch
Pantaenius Insurance - being seen in yellow, green and orange *Feature
Fake GPS signals detected when cruising the high seas
Sydney International Boat Show - Changed conditions on Sydney Harbour
Our new Cruising Editor editor remembers his first offshore adventure
World Odyssey Race - Bringing back the Corinthian spirit
Blue Planet Odyssey Rally - Raising climate change awareness
Pacific Circuit Rally - 2015   
All Points Rally departs this November   
Gold Coast Broadwater no closer to welcoming supermaxis *Feature   
2014 Magnetic Island Race Week Cruising North - One for Poppy? *Feature   
World ARC 2014 reaches Australia   
A Mooring in Iceberg Alley   
Marine Rescue volunteers called to rescue out of fuel vessel updates   
Marine Rescue volunteers called to rescue second vessel out of fuel   
Boaters urged to speak up on 15%ethanol proposal   
Predictwind helps you pick the best time to depart   
Silver Gull Creek host Marion Smart: Funeral and Wake   
IMB reports worrying trend of piracy hijacks in Southeast Asia   
Watch this whale lift a Kayak clear out of the water   
World ARC reaches half-way point in Australia   
Northern Scotland: Voyage to Orkney and Shetland Isles (Part 2) *Feature   
Vietnam Marina Development: ONE°15 Vung Ro Bay Marina Resort   
Marine Rescue volunteers praised for saving six from yacht   
Drowning or electric shock? What you need to know to help save a life   
Costa Concordia - the $2.25 billion salvage operation ready to begin   
Northern Scotland: Voyage to Orkney and Shetland Isles, more photos *Feature   


For this week's complete news stories select    Last 7 Days
   Search All News
For last month's complete news stories select    Last 30 Days
   Archive News







Sail-World.com  


















Switch Default Region to:

Social Media

Asia

Australia

Canada

Europe

New Zealand

United Kingdom


http://www.sail-world.com/event_images/image/Twitter_logo_small.png http://www.sail-world.com/event_images/image/FaceBook-icon.png  http://www.sail-world.com/event_images/image/RSS-Icon.png

United States

Cruising Northern

Cruising Southern

MarineBusiness World

PowerBoat World

FishingBoating World

 

Contact

Commercial

News

Search

Contact Us

Advertisers Information

Submit news/events

Search Stories/Text

Feedback

Advertisers Directory

Newsletter Archive

Photo Gallery

 

Banner Advertising Details

Newsletter Subscribe

Video Gallery

Policies

 

 

 

Privacy Policy

 

 


Cookie Policy

 

 



This site and its contents are © Copyright TetraMedia and/or the original author, photographer etc. All Rights Reserved.  Photographs are copyright by law.  If you wish to use or buy a photograph, contact the photographer directly.
XLXL WAS Cru SH
LocalAds   DE  ES  FR  IT