Misuse at imports of vessels

Two companies from Ljubljana area avoided paying more than 700.000 EUR of VAT.

Ljubljana Investigation Section concluded two customs investigations of misuse of exemption from VAT on import of vessels. There is no VAT on import of vessel provided that the vessel is intended for commercial, industrial or fishing use.

In the years from 2005 to 2007 two companies from Ljubljana area imported eight vessels of higher price range. They exercised the exemption from VAT, since they would conduct commercial activity. Both companies identified themselves as being registered for hiring out the boats and therefore they avoided paying 704.444 EUR of VAT.

The Customs investigated both companies and persons who participated in buying, selling and importing of the vessels. The investigation showed that the vessels were already prior to the import intended for resale to private individuals and not for conducting a commercial activity as stated in the documentation. One of the companies also enclosed an old extract from judicial record identifying it as registered for hiring out the boats. The fact is that in the time of the import this was no longer correct.

The Customs charged an unpaid VAT to the declarant and to one of the companies. The perpetrators who participated in buying, selling and importing of the vessels were charged for criminal offences.