Boat Registration Tax: Everything you need to know about the refund

Yachting Law

Did you know that it is possible to recover part of the registration tax you paid when you registered your boat if you decide to sell or export it?

Although few people are aware of it, there are legal ways to apply for a partial refund of the tax if you are a professional.

In this article we explain when and how you can do it, and what steps you need to take to avoid losing the opportunity to get that money back.

Table Of Contents

Boat Registration Tax: Everything you need to know about the refund

Have you ever wondered if you can get back some of the boat registration tax you have paid?

The answer is yes, in certain circumstances. However, in order to be eligible for a refund, you must meet certain legal requirements.

The registration tax is a tax that is paid when purchasing a boat. Although it may seem like an additional expense, knowing the refund possibilities can be very beneficial.

Especially for those involved in the sale and purchase of boats.

In this article, we explain when and how you can apply for a refund, what conditions must be met and the steps to follow.

 

When can you apply for a registration tax refund?

Refunds of Boat Registration Tax can be applied for in specific cases, such as when you sell or export your vessel.

 However, this refund will not be full, but proportional to the time elapsed since the tax was paid.

 For example:

If you have paid the tax and sell the boat one year later, you are entitled to recover 75% of the amount paid, up to a maximum of four years.

 It is important to know that this process can only be carried out if the legal requirements are met. These requirements are detailed below:

You sell the boat: If you are a commercial entity dedicated to the sale and purchase of vehicles and you sell the boat, you can apply for a refund.

You export the vessel: In some cases, exporting the vessel may result in a partial tax refund.

Key requirements for claiming the refund

In order to apply for a refund, you must meet the following requirements:

 Be a commercial entity: You must be registered as a company dedicated to the purchase and sale of vehicles.

Effective sale: The vessel must have been effectively sold.

Four-year deadline: The application must be submitted within four years of payment of the tax.

 

The importance of proving the buying and selling activity

Demonstrating that your company is indeed in the business of buying and selling vehicles is essential.

 It is not enough to be registered in the commercial register; you must provide evidence that proves your activity, such as:

  • Be registered under the corresponding epigraph.
  • The purchase and sale or resale of vehicles is one of the activities contemplated in the company’s objects.
  • Have a business/portal that shows that it is dedicated to the resale of vehicles.
  • Owning more vessels in the Maritime Register of Vessels.
  • The accounting records referring to the purchase of the vessel being checked should be those of a businessman engaged in the resale of means of transport, and should be removed from the tangible fixed assets account and added to a commercial stock account.

How to apply for a refund?

To apply for a registration tax refund, follow these general steps:

  1. Gather the necessary documentation: Among the documents, you will need to prove the sale or export of the vessel, as well as the date of payment of the tax.
  2. File the application with the relevant tax authorities: This must be done within four years of payment of the tax.
  3. Seek professional advice: Tax regulations can be complex, so it is advisable to enlist the help of an expert to ensure that your application is processed correctly.

 

Special cases and exceptions

There are some specific situations where an exemption or partial refund of registration tax can be claimed.

One such case is when the boat is used for charter. If you have already paid 12% for the rental, you may be entitled to an exemption from the tax.

Another case in which a partial refund can be requested is when the vessel is exported outside Spain.

Here, it is also possible to recover part of the tax paid, provided that the legal requirements are met.

In short, the refund of the boat registration tax is possible, but only if you meet the legal requirements and can prove that your company is actually engaged in the sale and purchase of boats.

Don’t forget that having a nautical lawyer will help ensure that your application is successful and correct.

At Almar Lawyers we offer professional and personalised advice so that you can enjoy your nautical experience with complete peace of mind and confidence.

Discover all our services and contact our experts now. Follow us on Linkedin to make sure you don’t miss a thing.

Recent Posts