<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=Content-Type content="text/html; charset=iso-8859-1">
<META content="MSHTML 6.00.6000.17095" name=GENERATOR>
<STYLE></STYLE>
</HEAD>
<BODY bgColor=#ffffff>
<DIV>
<DIV class=headline_area>
<H1 class=entry-title>Wintering Your Boat in Norway—Update</H1>
<P class=headline_meta>by <SPAN class="author vcard fn">Hans Jakob
Valderhaug</SPAN> on <ABBR class=published title=2011-02-17>February 17,
2011</ABBR></P></DIV>
<DIV class="format_text entry-content">
<P><A
href="http://www.norwegiancruisingguide.com/news/wp-content/uploads/2010/06/norwayflag.jpg"><IMG
class="alignleft size-thumbnail wp-image-271" title="Norway Flag" height=130
alt=""
src="http://www.norwegiancruisingguide.com/news/wp-content/uploads/2010/06/norwayflag-150x130.jpg"
width=150></A>It has long been the practice for cruisers to leave their boats in
Norway over the winter, giving them the opportunity to more extensively explore
this magnificent coastline. These intrepid sailors benefitted from Customs
regulations granting them a 12 month VAT exemption, with the option to apply for
a further 12 months (§6.1). Their boats generated business in coastal
communities and some of the crews went on to publish articles on Norway in
leading boating magazines, helping to promote Norway as a tourist
destination.</P>
<P><SPAN id=more-463></SPAN></P>
<H2>Recent Changes In Norwegian Customs Regulations</H2>
<P>Many of you will be aware that Norwegian Customs now seems to be implementing
new stricter regulations:</P>
<UL>
<LI>Owners may not leave their boats behind in Norway for more than 6 weeks in
a 12 month period (a result of policy makers treating boats, cars and planes
as one group, all being “means of transport” in their eyes). This bureaucratic
practice is rather surprising given an otherwise high awareness of a rich
maritime heritage.
<LI>To circumvent the 6 week rule, the boat owner must appoint an agent and
place 25% of the boat’s value as deposit with the agent while the boat is in
Norway. A further deposit will be required depending on the boat’s engine size
and refrigeration capacity. There will also be a handling fee to the agent.
</LI></UL>
<P>These two regulations have, for all practical purposes, ruled out leaving a
foreign boat over the winter in most Norwegian Customs regions.</P>
<P>Though the Finance Minister stated in September 2010 that “…the regulations
are similar in other countries with which it is natural to compare. This
includes Sweden”, it has since been documented that this is not the case: Sweden
allows non-EU boats an 18 month VAT exemption, which seems to be the way most EU
countries treat boats from outside the union (countries bordering on the English
Channel have somewhat different regulations due to the tax free status of the
Channel Islands).</P>
<H2>Boats Caught By New Customs Regulations</H2>
<P>There has been much publicity concerning the <A
href="http://www.norwegiancruisingguide.com/news/2010/06/a-distressing-experience-with-norwegian-customs/"><FONT
color=#204464>Swedish couple</FONT></A> who wintered their boat in Mo i Rana in
2008/2009. After leaving Norway they were presented with a bill for Norwegian
VAT of NOK 200 000 (USD 35000/EUR 25000). The Swedish couple brought the case
before an Oslo court, which ruled that the 6-week rule is a Customs regulation,
not a law, and that leaving a boat unattended for more than 6 weeks is normal
use for boats in this part of the world (or something to that effect). The Court
did, however, rule against the Swedish couple on account of having had the boat
in Norway for 5 days more than the permitted 12 months, leaving them with a
total bill of NOK 300 000, including court fees.</P>
<P>A less well-publicized case is of the British owners who had to pay Norwegian
VAT after leaving their boat ashore in Bodø between August 2008 and May 2009. A
few minutes before the scheduled launching, a Customs official informed the
owners that they were not permitted to launch before Norwegian VAT was paid.
Since this took place a few hours before a long planned cruise, the owners felt
they had little choice but to pay the bill of nearly NOK 100 000 (USD 17500/EUR
13000).</P>
<P>In both cases it appears that local Customs officials were aware of the
foreign boats during their entire winter lay-ups but didn’t inform the owners
that they might be incurring Norwegian VAT.</P>
<H2>Future Directions</H2>
<P>The Norwegian boating community is embarrassed. They have set up a Facebook
group that now has nearly 1000 members (“La båtturister få ha båten sin i Norge
over vinteren”) and the sailing magazine <EM>Seilas</EM> has started a
fundraising campaign for the unfortunate Swedish couple.</P>
<P>Due to this kind of public pressure, the recent court rulings, enquiries from
national and international boating organizations, and extensive media coverage,
there is now political pressure to bring about a change. These regulations and
their consequences have already been debated three times in the Norwegian
Parliament and both the Finance Minister and the Department of Customs and
Excise have recently stated that “the matter is being looked into”. We are told
that this phrasing gives realistic hope for a change to current regulations.
Watch this space!</P>
<H2>Related Reading</H2>
<P>Previous posts on Norwegian <A
href="http://www.norwegiancruisingguide.com/news/category/norwegian-customs/"><FONT
color=#204464>Customs</FONT></A> and <A
href="http://www.norwegiancruisingguide.com/news/category/norwegian-immigration/"><FONT
color=#204464>Immigration</FONT></A>.</P></DIV></DIV></BODY></HTML>