OUR KNOW-HOW? SUPPORT YOU FROM START TO FINISH
Selling a French boat to a Frenchman?
A foreigner?
Leasing?…
At MiB Yacht Services, when we sell a boat, we don’t consider our mission to end until the boat’s new papers have been obtained. To get you there, here are a few cases and details depending on the boat’s origin and destination.
French boat to a French customer
Buying a boat abroad
Leasing boats
Selling a French boat to a Frenchman
In this first case, the file is quite simple
step 1: Drawing up 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 compromis is in French, protecting the buyer from any defects, and the seller from a financial point of view. description.
Step 2: Receive the deposit
This agreement is valid on receipt of the 10% deposit, paid into our escrow account for maximum security. At this stage, we check the boat’s “unpledged” status, whether it’s a sailboat, yacht or catamaran.
etpae 3: Handling expertise
The buyer selects his expert (at his request, we can recommend a minimum of 3 independent experts). The appraisal is scheduled within a fortnight. Barring any surprises, the deed of sale will be signed afterwards.
Step 4: Drawing up the deed of sale
The balance is paid to the seller, the deed of sale is sent for signature, and the complete file is given to the buyer.
Step 5 (optional): Ship registration
At the purchaser’s request, we can carry out the change of owners with the relevant department (additional charge).
Selling a French boat to a foreign buyer
In this second case, the file is obviously different!
step 1: Drawing up the compromise
Based on the same principles as above (Myba or Abya), the compromise is drawn up in 2 languages: French and English. If the purchaser wishes to translate the document into his own language, this step is at his own expense to avoid any misinterpretation.
Step 2: Receive the deposit
This agreement is valid on receipt of the 10% deposit, paid into our escrow account for maximum security. At this stage, we check the boat’s “unpledged” status, whether it’s a sailboat, yacht or catamaran.
etpae 3: Handling expertise
The buyer selects his expert (at his request, we can recommend a minimum of 3 independent experts). The appraisal is scheduled within a fortnight. Barring any surprises, the deed of sale will be signed afterwards.
Step 4: Drawing up the deed of sale
The balance is paid to the seller, the bill of sale is sent for signature, and the complete file is handed over to the buyer (CE certificate, proof of payment of CE VAT).
The bill of sale is drawn up in French and English, and will be used to request delisting from the French flag.
Step 5 (optional): obtain a new flag – Customs
The boat can then apply for registration in France. Payment of VAT may be required if the boat was not registered in Europe before.
In this case, we use the services of a specialized forwarding agent (additional fee).
In addition to these 2 types of boat sales, there are many other variations and scenarios.
Leasing boats
As a reminder, a leased boat is the property of the bank, not the seller. In this case, administration is very different.
The assignor is the signatory of a lease contract
He can assign this contract to a new tenant. The bank that drew up the LOA contract will then propose an amendment to the contract, and approve a new lessee. The outstanding capital will be compared with the total outstanding rental payments, to determine the amount of the balancing payment to be made to the seller.
The Leasing contract
The Leasing contract can also be interrupted. The bank then sells the boat, either to its private lessee, its corporate lessee, or to a yachting professional.
If the lessee buys back the lease
If the lessee buys back his lease, he becomes the owner, and can then sell in the “classic” way.
In the event of sale by the bank
It should be noted that the bank can sell the boat, and that the VAT on the outstanding capital may be recovered by a company, a professional, or even a non-EC buyer.
Duty-free sales
Intra-Community VAT rules
A sale may be “tax-free”, between two EC companies from different countries ( intra-Community VAT rules), or to a customer domiciled outside the EC.
Advanced VAT
However, a sale including VAT may allow some buyers to reclaim the advanced VAT. These are companies subject to VAT. This type of sale must be accompanied by an invoice from the seller (bank, dealer, agent, etc.), showing the amount of the sale before tax, the amount of VAT, and the total including VAT.
Duty-free navigation regulations
Sailing in European waters with a “duty-free” boat remains highly regulated. While the case of a company operating a boat is straightforward (VAT has been reclaimed, and will be re-invoiced when the boat is resold), the case of private individuals is very different. A private individual may not stay in EC waters for more than a few months, whether French, Swiss or other, and regardless of flag. Before the deadline, he will have to contact a forwarding agent, and proceed with the customs import of the boat, under penalty of having to pay the VAT under duress.
even more atypical examples
Adding VAT to boat ads displayed exclusive of tax
The boat is advertised as “price before tax”. This alone doesn’t really tell you the amount of any price including VAT. 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. VAT can also be paid in the country where the sale takes place, and European rates are not fully harmonized.
In the case of a boat sale by a LOA holder
A Leasing holder sells his catamaran, which has been managed/leased for 5 years. He made a 20% downpayment at the time of purchase, then spread the payments over 15 years. Watch out! It is likely that the amount owed to the bank will not exceed the actual value of the boat. The boat has been used a lot, and has depreciated according to this use, and the financial costs are significant over such a long leasing period. The first step is to ask the bank for the amount of the cash surrender value to date.
In the event of the sale of a yacht including VAT in the West Indies
It is very important to note that whenselling a sailboat in the West Indies, VAT rates in the French overseas departments are not the same as in mainland France. You may be in for a nasty surprise when your boat returns to France. Questions about boat sales administration? That’s why we’re here, to help you enjoy the pleasures of sailing.
