VAT is the question? Is Gibraltar the answer?

Calling all Euro-Packeteers! Here we come, Deus volens, Nancy and I on Adventuress IP420, leaving the Virgins about May 8 2014 bound for Falmouth by ? early July (Yes, could be sooner, but we are told that the Azores 'need' at least two weeks). So here's a plan: 2014 thru August 2015, cruise UK: Autumn 2015 head to Med. BUT...the dreaded VAT man lurks around the dark corners of the EEC and so: can we break our 'VAT 18 month' rule by simply going into Gibraltar? According to Wikipedia, "Although it is part of the EU, Gibraltar is outside the customs union and VAT area..."

Will this work or is that just too easy and will we need to go elsewhere?

Yes, yes, I know it's mundane tax crap and there is so much far more interesting stuff....such as who will be on the dock in Falmouth to take our lines and join the celebration? . ....but my Admiral Nancy is needing to know ....asap!
Best to all
John Knight (formerly Larking About IP40)

PS If you want to keep up with our crossing, we will soon resume posting to our blog site AdventuressSailing.blogspot.com as we start out from St Thomas to cross the pond.

Hi John,

We are currently based in Gibraltar with our IP440 "Seraphina".

As I understand it, whilst Gibraltar is a member of the EU but out side of the EU VAT area, if you first stay in Gibraltar and then move on to elsewhere within the EU the time spent in Gibraltar will count towards your total EU days. I don't know if it works better the other way round ie you spend up all your EU time in mainland EU and then go to Gibraltar. Normally you can stay in Gibraltar for up to 6 months without being subject to Gibraltar import duty on the vessel. There shouldn't be an issue of Vat in Gibraltar because there is no Vat there. There is some information about this topic on noonsite.com There is also info at this link to the Gibraltar tax and customs website www.hmcustoms.gov.gi
You also have other non EU options to stop or re-start the clock on your time within the EU ie Morcoco and Turkey.
We can certainly recommend Gibraltar as a good base and an interesting place to visit!
Fair winds and enjoy
Jonathan

Sue and I had a heck of a first hand opportunity to study the VAT 18 month issue. Arrived Azores July 20111 and first time totally out of the EU was August 2012 in Turkey, coming off the Black Sea after going through the northern rivers from North Sea to Black Sea. But we then wanted to maximize our time further for the following year by resetting it as we got to Gibraltar before the Iberian Peninsula in July 2013 (to give us till the end of this year).
Per your question direct question, for me, the simple solution was taking 3 hours to go across the Strait of Gibraltar to Africa (you can see across it) and land in the Morocco Port of SMIR, Morocco. After you leave Smir, VAT resets as you have your passport stamped out of the EU and have your boat documents and evidence of your stay a day or two at Smir to prove you removed your vessel from the EU. Its a piece of cake and you then should have 18 months of peace of mind following.

ONE WORD OF CAUTION: The rules can be interpretted in some places differntly. Many, including the folks in the Channel Islands think they are outside EU, for purpose of resetting VAT, but last Spring and Summer the Portuguese Assessor at Porto, impounded a US sailboat that had proof of a Channel Island stay. The tax person claimed it was not outside EU for removing the boat. I wonder what they would say about Gibraltar? Though I was a lawyer I would not want to be the test case. The US folks aggrieved ended up fleeing the Porto Marina with their boat but looked over their shoulder for a long time fearing someone would chase them... they got away and crossed back to America.

Thanks Jonathan! We most certainly will plan some time in Gib ....sort if hard to bypass it!
Looks like Ed Kelly has the answer: Smir, Morocco will get us a fresh 18 months' worth of VAT exemption. JFK

Dear Ed, Thanks, that's great info' and good news! I had been looking on the charts of Morocco and found Ceuta, but I think that is technically part of Spain and so is of no VAT use. I had not yet found Smir, but now it's on the plan! Interesting story re Channel Isles and Porto authorities: hope those fleeing folks do not want ever again to visit Portugal or her Atlantic Isles! JFK ps what kind of Packet is that in your picture?

We saw there is a Packet Cat for sale, but we are pretty much wedded to our ANGEL LOUISE... she was built over here. A Catalac 12 Meter that was in a creek south of Annapolis. Our friends that got nabbed made it to the Caribbean and is not coming back. I will send you a chart if you give me your email. My direct email is This email address is being protected from spambots. You need JavaScript enabled to view it.

We hope the dollar does not continue to devalue against the money over here. It makes it tougher.

Ed

Tried to attach a chart from my Chart Plotter of the location of SMIR and the cruise around to Gibraltar... hope it shows.