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bigduckontax
bigduckontax, Accountant
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We are moving our 1989 bavaria 38 from turkey to croatia via

Customer Question

We are moving our 1989 bavaria 38 from turkey to croatia via the greek islands, where would be the best place to pay the minimum VAT?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

VAT in Turkey is 18%, in Croatia it is 25% and Greece 24%, but certain Greek Islands have a lower rate of 17% for Category 1 goods. Your move to Croatia would appear to be not the best choice; depending on the island Greece might be a more favourable destination. You might be better to stay put!

I do hope that I have been able to shed some light on your conudrum.

Customer: replied 1 year ago.
Thankyou if we pay VAT in turkey will that be accepted in Croatia?Also which Greek islands have the lower rate?
Expert:  bigduckontax replied 1 year ago.

Here is the data from Accordance regarding the phasing out of advantegous VAT rates which go by 2017 anyway:

'Currently, the islands of Samos, Chios, the Dodecanese, the Cyclades and the Aegean Islands Thassos, Samothrace, Sporades and Skyros enjoy a 30% reduction in these rates – 16%, 9% and 5% respectively.

However, starting 1 October 2015, the 30% reduced island rates will be gradually phased out, with full removal effective by 1 January 2017. The move comes as further austerity measures are put into action. In July the government also widened the scope of the standard VAT rate leading to price increases on many goods and services in Greece'

You have to pay VAT in the country in which the services are provided and where the organisation is registered. VAT can only be levied in one country for the same service.

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Expert:  bigduckontax replied 1 year ago.

Thang you for your support.

I am sorry but a telephone call is not practical as I am answering your question from a time zone 6 hours ahead of the UK. You can still follow up on this thread if you have further queries.

Customer: replied 1 year ago.
Many thanks.We are going to move our boat to croacia & it appears that we will not be obliged to pay VAT immediately as long as we do not apply for a 12 month contact.Question ,how long will Croacia allow us to remain on a series of shorter term contracts before demanding VAT re gards Peter
Expert:  bigduckontax replied 1 year ago.

Registration Threshold for distance selling is HRK270 [about 36K Euros]. VAT rate is at 25%.

I can find no guidance regarding the '12 month contact' set out in your follow up question.