Page 1 of 7 123456 ... LastLast
Results 1 to 10 of 64
  1. #1
    Join Date
    Mar 2009
    Location
    Kernow
    Posts
    4,145

    Default Brexit and VAT status - flotilla from UK

    With Brexit no deal looking more likely, my thoughts turn to the VAT status in the EU of my boat.

    Have read the RYA advice at https://www.rya.org.uk/knowledge-adv...-scenario.aspx

    Am thinking I and others could well best ensure EU VAT status by ensuring boat is in EU on 31st Oct, so could there be a flotilla of British boats all heading the same way before end if Oct? It seems likely.

  2. #2
    Join Date
    Aug 2013
    Location
    SW Scotland
    Posts
    19,549

    Default Re: Brexit and VAT status - flotilla from UK

    Quote Originally Posted by Comrade Red View Post
    With Brexit no deal looking more likely, my thoughts turn to the VAT status in the EU of my boat.

    Have read the RYA advice at https://www.rya.org.uk/knowledge-adv...-scenario.aspx

    Am thinking I and others could well best ensure EU VAT status by ensuring boat is in EU on 31st Oct, so could there be a flotilla of British boats all heading the same way before end if Oct? It seems likely.
    You'll have been in the EU on 30th October - will one day more really make a difference? You lose EU VAT paid status anyway if you spend two years (?) outside.
    "Seamen are always wanting to do things the proper way; and I like to do them my way."

  3. #3
    Join Date
    Sep 2018
    Posts
    56

    Default Re: Brexit and VAT status - flotilla from UK


  4. #4
    Join Date
    Aug 2013
    Location
    SW Scotland
    Posts
    19,549

    Default Re: Brexit and VAT status - flotilla from UK

    Quote Originally Posted by PHN View Post
    True, but any boat which leaves the EU for two years - to Norway, say, or the Channel Island, or perhaps in due course to Boristan - loses that status again. The issue addressed in the OP's RYA link is about "union status", not VAT.
    "Seamen are always wanting to do things the proper way; and I like to do them my way."

  5. #5
    Join Date
    Sep 2018
    Posts
    56

    Default Re: Brexit and VAT status - flotilla from UK

    Quote Originally Posted by JumbleDuck View Post
    True, but any boat which leaves the EU for two years - to Norway, say, or the Channel Island, or perhaps in due course to Boristan - loses that status again. The issue addressed in the OP's RYA link is about "union status", not VAT.
    The OP specifically mentions "EU VAT status". Try to get some kind of official tax statement for a pre-1985 boat that you buy today in the EU. I don't know for all EU countries, but in some of them you get a response that you get nothing simply because the boat is pre-1985.

    Add to that the fact that not all EU countries have mandatory registered boat ownership for pleasure yachts then with no paperwork required and no registered owner required who knows where the boat has been, owned by, etc. The boat is here today and owned by me solely because I say so.

  6. #6
    Join Date
    Jan 2011
    Posts
    5,752

    Default Re: Brexit and VAT status - flotilla from UK

    This is a subject that is of interest to me, as I plan on going cruising in a year or two's time.

    The VAT on my boat was paid in the Azores (EU) on route from Antigua to the UK, so currently it has EU Vat-paid status.

    Since then, it has lived in the UK (for 8 years), however as the UK is currently part of the EU, I assume that it has not left the EU in that time.

    I guess the question is, will my boat have to be in the EU on 30th/31st to remain EU Vat-paid, or will it be deemed that it is (as the VAT was actually paid in the EU), with the "2 years outside the EU" clock ticking from 1st November?

  7. #7
    Join Date
    Mar 2010
    Location
    Ammersee, Bavaria
    Posts
    5,107

    Default Re: Brexit and VAT status - flotilla from UK

    I went through the opposite when Croatia joined the EU, I assume leaving the EU will simply be the reversal of the process. After Brexit the following will likely be the case.

    For UK citizens:

    Boats with VAT paid will remain VAT paid in the country they are in when Brexit actually happens. Marina receipts were adequate evidence. UK based boats will become UK Goods EU based boats will become EU goods.

    A UK based boat with a UK citizen as owner will be fine. In the UK VAT is paid and visiting the EU will just need customs clearance and the boat can stay for 18 months under temporary import before it has to leave and re-enter. This was the situation I was in with a VAT unpaid boat in Croatia before Croatia joined the EU. Clocking out and in again took a day, this process resets the 18 months temporary import. Failing to check a foreign boat in or out can lead to siezure until import duty/VAT is paid - my import/export paperwork was checked every time I reset the 18 month temporary import clock. How EU countries near the UK (France, Belgium, Holland etc.) choose to police this with respect to UK boats remains to be seen - it could be red diesel on steroids or it could be very relaxed.

    UK citizens with a boat in the EU will retain EU VAT paid status. The boat is seen as EU goods (imported) so it can stay in the EU indefinately. If it is brought back to the UK, UK Returned Goods Relief will apply (according to RYA website) and it will escape VAT and import duty. If it changes hands outside the UK or is modified outside the UK this will not apply and it will lose its UK VAT paid status.

    For EU citizens the reverse is true.

    Impact on second hand market: Private UK boats will become less attractive to EU buyers (even with the falling pound) as they will not retain VAT paid status on purchase and will be liable to import duty and VAT on entering the EU. Depending on how the rules end up, they could also have the same issues as import from the US regarding RCD, CE marking etc. This is all an unknown and only time will tell. Similarly, second hand EU VAT paid boats will become less attractive to UK buyers for the same reasons - unless intending to keep them in the EU.

    There is however an upside. UK citizens will be able to purchase and keep boats in the EU VAT free under temporary import. 18 month limit will apply but it isn't too much hassle. I used to do this in Croatia and it is relatively straightforward. Only problem will be that UK citizens without residency permits will only be able to spend 90 days in every 180 aboard - only a problem for live aboards, EU VAT paid or not.

    This is what I am expecting but my boat is in the EU and will remain there. I am now a dual EU(German)/UK citizen so although my boat will no longer be UK VAT paid, I still have complete freedom of movement in the UK and EU.

    EDIT: Edited to reflect new info on RGR post-Brexit on RYA website.
    Last edited by Baggywrinkle; 12-08-19 at 11:22.
    The best argument against democracy is a five-minute conversation with the average voter.

  8. #8
    Join Date
    Aug 2013
    Location
    SW Scotland
    Posts
    19,549

    Default Re: Brexit and VAT status - flotilla from UK

    Quote Originally Posted by PHN View Post
    The OP specifically mentions "EU VAT status".
    I know, and as far as I can see it won't make any significant difference to that if a boat is in or out of the EU on the first day of our Glorious FreedomTM. The article to which he links is about union status and UK VAT.
    "Seamen are always wanting to do things the proper way; and I like to do them my way."

  9. #9
    Join Date
    Jul 2010
    Location
    location location ...
    Posts
    1,002

    Default Re: Brexit and VAT status - flotilla from UK

    "I know, and as far as I can see it won't make any significant difference to that if a boat is in or out of the EU on the first day of our Glorious Freedom"

    I admire your ignorance.

    I normally spend 5 months each year sailing in the Baltic.

    If my boat is outside the EU on Brexit Day [and that includes the UK], it loses its EU VAT status. This means I can keep it in EU waters for 18 months, at which point it becomes EU VAT payable. So … my options are Norway or Russia ...

  10. #10
    Join Date
    May 2007
    Posts
    37,732

    Default Re: Brexit and VAT status - flotilla from UK

    I suspect it's not so simple.
    A UK-owned boat, with a UK SSR registered to a UK resident, having been based in a UK port for the last 5 years will probably still be treated as a UK VAT paid boat if it happens to be visiting Cherbourg at the key hour. Much the same as if it happened to be in the middle of the Atlantic or in Jersey.
    A UK owned boat 'permanently' based in the Med is clearly a different proposition.

    There may be some awkward grey areas for UK boats which have been playing the 'just visiting' card in some EU countries for the last few years.

Page 1 of 7 123456 ... LastLast

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Latest YBW News

Find Boats For Sale

to
to