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yacht in transit USA - tax-free refit???
BjornDB
Posted: Monday, February 8, 2010 7:37 PM
Joined: 13/02/2009
Posts: 23


We had one of our tenders refitted in Florida and I heard there is a way to avoid paying taxes. This is an extract from an email I received from the refitter:

"Here are the Florida tax laws that may make you sales tax exempt for certain work you do while here in the US. We did a tender for a another foreign flagged yacht and they gave me a copy of their ship in transit paperwork. My accountant contacted the state of Florida, described the situation and the number of days the boat was in our possession. They said it was not taxable and to list these Florida tax statutes on the invoice.

 

Florida Administrative tax code:               12A-1.007 and 12A-1.0071"  end of quote


How do I apply for a 'ship in transit' document and can I still get it after we have left? 


to what extent can we apply for tax exemption? even a full yacht re-fit?


Thanks!!!



MatrixLloyd.com
Posted: Tuesday, February 9, 2010 9:14 AM
Joined: 19/05/2008
Posts: 52


Hi Bjorn. We have never come across this. I suggest, as you’re the paying customer, that you get the supplier to get their accountant to do the donkey work on this, contacting the Florida tax authorities as required to answer your questions. Benjamin.
Kelly
Posted: Friday, February 12, 2010 8:35 PM
Joined: 02/05/2008
Posts: 40


Bjorn- I am one of the contributors for Dockwalk and read your post with interest. I too, had never heard of this exemption before and having sat through several FYBA seminars which deal with this general subject-matter, I figured I should do a little homework on this one and try to get you an answer. A contact at the Florida Department of Revenue read your post and their Chief of Public Information wanted to make this clarification: "12A-1.0071, implementing s. 212.08(7)(t), provides(among other things) an exemption from use tax for boats temporarily brought into Florida and placed at a registered repair facility. The repairs, however, are taxable." ----------------- Use tax in the state of Florida is equivalent to sales tax (6% of the purchase price of the boat) so you certainly do not want to end up paying this if you do not have to. You will, however, end up paing taxes on the work, so there is still no such thing as a tax-free refit in FL. The affidavit you want for the use tax exemption is called The EXEMPTION AFFIDAVIT FOR BOATS PLACED IN A REGISTERED REPAIR FACILITY. I was told that the facility should have these documents available for you but that the OWNER is responsible for executing the affidavit within 72 hours of arriving at the facility. Hope this is the information you were looking for.
 
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