The know-how of MED’IN BOATS
Why sell your boat with Medinboats?
For MED’IN BOATS, when selling a boat, we consider that our mission does not end until the boat’s new papers are obtained. To get there, here are some cases and details.
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The sale of a French boat to a French client
When you sell a French boat to a French customer, the file is quite simple.
Step 1
First of all we establish the compromise
The compromise is made, following the MYBA (Mediterranean Yacht broker association) or ABYA (Association of brokers and yachts agents, yacht brokers, designers and surveyors) models. The compromise is in French, protects the buyer from possible defects, and the seller from a financial point of view.
Step 2
Receipt of the compromise
This agreement is valid upon receipt of the 10% deposit, paid into a dedicated account. At this stage, we check the “unpledged” status of the boat, whether it is a sailing boat, yacht or catamaran
Step 3
Organization of the expertise
The buyer will select his expert, and the expertise is fixed within a fortnight. Unless there is a surprise, the deed of sale will be signed afterwards.
Step 4
Completed sale file
The balance is paid to the seller, the sale file is completed, and sent to the ddtm for registration.
The sale of a boat with a foreign buyer
If the buyer is a foreigner, the procedure is obviously different.
Step 1
Translation of the compromise
The compromise will be established in two languages. The expertise will probably take place in English. Some countries (Switzerland in particular) require a particular format for the expertise.
Step 2
Management of the sale act
The bill of sale in French will remain unchanged. It is used to request a de-listing from the French flag. The seller must probably provide a tax clearance.
Step 3
Establish a Bill of Sale
In addition, it is sometimes necessary to establish a “Bill Of Sale”, signed by the seller, authenticated signature.
Step 4
Obtaining a new flag letter
With these documents, and of course the CE certificate of the manufacturer, the buyer only has to submit the file to his national administration to obtain his new flag letter.
The sale of a foreign boat to a French client
If the boat is foreign, and is sold to a French customer, the procedure is quite similar to that of the sale of a French boat to a French customer.
Step 1
CE VAT
First of all, it is necessary to ask for the CE certificate and a proof of payment of the CE VAT.
Step 2
Customs
Then, we use a forwarding agent for the customs import of the boat.
Beyond these three types of boat sales, there are many variations, and cases of figure
Leased boats
As a reminder, a leased boat is the property of the bank, not the seller. In this case, the administration is very different.
The transferor is the signatory of a lease agreement
He can transfer this contract to a new tenant. The bank which established the contract of LOA will then propose an amendment to this contract, and approve a new tenant. The remaining capital due will be compared to the total of the remaining rents due, to determine the amount of the balance to be paid to the transferor.
The LOA contract
The LOA contract can also be terminated. The bank then sells the boat, either to its private lessee, or to its “company” lessee, or to a boating professional.
If the lessee buys the lease
If the lessee buys back his lease, he becomes the owner, and can then sell in the “classic” way.
In case of sale by the bank
It should be noted that the bank can sell this boat, and that the VAT on the remaining capital due can possibly be recovered by a company, a professional, or even a buyer outside the EC.
Duty-free sales
Intra-Community VAT rules
A sale can be “tax free”, between two EC companies from different countries (intra-community VAT rules), or to a customer domiciled outside the EC.
Advanced VAT
A sale including VAT can nevertheless allow certain purchasers to recover advanced VAT. These are companies subject to VAT. This type of sale will be accompanied by an invoice from the selling professional (bank, dealer, agent…), which will show the amount before tax of the sale, the amount of VAT, and the total including VAT.
Regulations for the navigation of duty-free boats
Sailing in European waters with a “tax-free” boat remains highly regulated. If the case of a company operating the boat is simple (the VAT has been recovered, and will be re-invoiced when the boat is resold), the case of individuals is very different. A private individual cannot stay in EC waters for more than a few months, whether he is French, Swiss or other, and whatever the flag. Before the deadline, he will have to contact a forwarding agent, and proceed to the customs importation of the boat, under penalty of having to pay the VAT under duress.
Examples of more atypical boat sales
The addition of VAT for boat ads displayed without tax
The advertisement of the boat is stipulated “price without taxes”. This mention alone does not really inform on the amount of a possible price including VAT. The added VAT can be calculated on the total amount, or on the outstanding capital if the seller has this practice and the lease is still in progress. The VAT can also be paid in the country where the sale takes place, and the European rates are not completely harmonized.
In case of a boat sale by a LOA holder
A LOA holder sells his catamaran, which has been managed/leased for 5 years. He paid a 20% down payment at the time of purchase, then spread the payments over 15 years. Be careful! It is likely that the amount due to the bank does not exceed the real value of the boat. The boat has been used a lot, has been de-costed according to this use, and the financial costs are important over such a leasing period. The first thing to do is to ask the bank for the amount of the buy-back value to date.
In case of sale of a sailboat TTC in the Caribbean
It is very important to note that in case of sale of a sailboat in the West Indies, the VAT rates of the DOM are not those of the Metropolitan France. You could have a bad surprise when your boat will be returned to France. Questions about the administration of boat sales? That’s why we are here, and why you should enjoy sailing.