What does VAT paid mean on a yacht?

VAT paid means EU VAT was charged on the boat in an EU country, or paid on import. The status stays with the boat when it changes owner.

Updated 24 Oct 2026 3 min read

Key points

VAT paid is a fact about the boat's history, not about the buyer or the flag.
A private seller does not charge VAT on a used boat. The boat keeps whatever status it had.
A business seller may sell under the used-goods margin scheme. The boat is still VAT paid.

What the term means

A boat is VAT paid when value added tax has been charged on it in an EU country, or paid when it was imported into the EU. From then on it circulates freely between EU countries, and no new VAT is due when it moves from Spain to France or from Italy to Greece. Customs people call this Union status. See EU customs status vs VAT status (incl. the T2L) for how it relates to VAT.

What it does not depend on

The flag, the nationality of the owner and the owner's home country do not decide the status. A Spanish boat can be VAT not paid. A boat under the Polish or British flag can be VAT paid. The status comes from the boat's tax history, so that is where you look.

How a boat becomes VAT paid

Sold new in the EU. The builder or dealer charges VAT on the first sale. The rate is the one in force where the sale takes place.
Imported into the EU. The importer pays import VAT, and customs duty where it applies, to the customs authority of the country where the boat enters. See Importing a yacht into the EU and temporary admission for non-EU yachts.
Regularised later. An owner of a VAT not paid boat pays the VAT due, and the authority records it. See Buying a VAT-not-paid yacht.

Second-hand sales

When a private person sells a used boat, no VAT is added to the price. The boat keeps its status and the buyer inherits it. This is why the paperwork from the first sale matters twenty years later.

A business can sell a used boat under the margin scheme for used goods. VAT then applies to the dealer's margin only, and the invoice does not show VAT as a separate line. The boat is still VAT paid. If a dealer sells you a boat on this basis, ask for the earlier documents that prove the first VAT payment.

Why it changes the price

VAT paid boats sell for more than comparable VAT not paid boats, because the buyer of the second kind owes VAT. In Spain the standard rate is 21%, which is €21,000 on a €100,000 value. The adviser or broker works out the real figure for the actual boat.

What to do next

Ask the seller for the status in writing, then ask for the documents behind it. See Proving and verifying VAT status: which documents count, and checking before you offer.

Also useful at step 3 Proving and verifying VAT status: which documents count, and checking before you offer

General information, not legal, tax or financial advice. Rules change; check your own case with a professional or ask us.