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Post by Hugh Jorgan on Sept 27, 2023 13:45:03 GMT 12
Why are buyers made to pay tax on a boat that is "flagged" ?
Surely the seller has had the benefit and thus should pay.
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Post by GO30 on Sept 27, 2023 15:27:41 GMT 12
I'm guessing as the flagged boat has become a NZ boat due to the sale of it at which time hands come out looking for GST.
But Flagged is used in a few ways, some not that correctly so you'd probably want to define what they mean by 'flagged'.
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Post by fish on Sept 27, 2023 16:37:26 GMT 12
If it is an ocean going boat that is being sold in NZ, but hasn't been imported, there is a good chance the new owner doesn't want to keep it in NZ. It may be a foreign buyer, or someone in NZ that wants to go cruising offshore and is happy to save the significant cost of importing it and paying all the taxes.
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Post by ComfortZone on Sept 28, 2023 9:38:14 GMT 12
A vessel's flag is not connected to tax status. The 2 tests are
1. Residency of the owner - if you are a NZ permanent resident and you arrive in NZ with a boat that is not tax paid, you will have to pay gst and possibly duty immediately. Australia is the same. In the case of NZ the boat will be impounded and only released when the tax payment funds have been cleared in Custom's account.
2. If the boat spends longer than a defined period, typically 2 years depending on how the country defines its temporary import waiver, you will likewise have to pay the import costs
Don't understand the comment about the seller benefitting, as long as they declare the boat is not tax paid for the country it is being advertised in, they have fulfilled disclosure obligations
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Post by Fogg on Sept 29, 2023 14:10:15 GMT 12
Gets a bit murkier if NZ owner has dual citizenship…
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Post by dutyfree on Sept 29, 2023 20:12:32 GMT 12
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