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  1. #1
    Join Date
    Jul 2012
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    Riyadh, Saudi Arabia
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    1,323

    Default VAT: Buying In Europe Now and Collecting The Boat After 'B Day'.

    OK, Im about to look at a boat. It looks good in the pictures and the description and price nearly match up. Thing is, Im in the Solent (UK) and the boat is in Republic of Ireland (Eire).

    The fun thing is something called Brexit, currently scheduled for the end of this month.

    If I were to buy it later this month but still leave it in Ireland and collect it in spring 2020 would I be liable to pay UK VAT on it, even though it became a UK owned boat when I bought it? Your thoughts please?

  2. #2
    Join Date
    May 2007
    Posts
    38,325

    Default Re: VAT: Buying In Europe Now and Collecting The Boat After 'B Day'.

    Sounds like a grey area to me.

    Your location might complicate things further?
    Are you ex-pat for tax purposes?
    Are you going to be Uk resident when you take delivery of the boat?

    Frankly you'd be bonkers to put too much store in amateur interweb opinions trying to apply logic where there often is none.

  3. #3
    photodog is offline Lord High Commander of Upper Broughton and Gunthorpe
    Join Date
    Apr 2007
    Posts
    35,535

    Default Re: VAT: Buying In Europe Now and Collecting The Boat After 'B Day'.

    And that is the million dollar question.

  4. #4
    Join Date
    Feb 2017
    Location
    Trkiye
    Posts
    1,610

    Default Re: VAT: Buying In Europe Now and Collecting The Boat After 'B Day'.

    I don't think you will have any difficulty provided you obtain absolute proof of it's VAT paid status prior to purchase. You should then be able to avail of the promised Returned Goods Relief law in the event of a no deal B.

  5. #5
    Join Date
    Jul 2012
    Location
    Riyadh, Saudi Arabia
    Posts
    1,323

    Default Re: VAT: Buying In Europe Now and Collecting The Boat After 'B Day'.

    Quote Originally Posted by lw395 View Post
    Sounds like a grey area to me.

    Your location might complicate things further?
    Are you ex-pat for tax purposes?
    Are you going to be Uk resident when you take delivery of the boat?

    Frankly you'd be bonkers to put too much store in amateur interweb opinions trying to apply logic where there often is none.
    Oh blimey that’s true. My home is near Portsmouth but I’m legally resident in Saudi and the only tax here is 5% VAT on most things. I will be looking to put the boat onto the UK SSR. I'll be legally expat at time of purchase.

    I believe that the boat is EU VAT paid which works everywhere in the EU/UK at the moment. I really don’t want to have to stump up an additional 20%. It will be a private purchase too (not through a broker).

    I guess we can state any date we wish on the bill of sale…

  6. #6
    Join Date
    May 2007
    Posts
    38,325

    Default Re: VAT: Buying In Europe Now and Collecting The Boat After 'B Day'.

    Technically it might not be covered by 'returned goods' relief as it won't be returning to the UK.
    Not sure you can put it on SSR without a UK residence either?
    AIUI, expats can bring quite a lot of chattels with them when they return, but you won't be bringing it from Saudi? Still, it's another avenue to explore perhaps?
    You have left it quite last minute to DYOR. OR maybe not!

    I wonder whether a UK domiciled company buying the boat might be useful?

    You look like an 'edge case' and I wouldn't put much faith in the shaky general reassurances we've had.
    There are gaps and flaws in the general advice IMHO and I really don't know how being an expat affects things.

  7. #7
    Join Date
    Aug 2011
    Location
    On the Celtic Fringe
    Posts
    14,336

    Default Re: VAT: Buying In Europe Now and Collecting The Boat After 'B Day'.

    Quote Originally Posted by langstonelayabout View Post
    If I were to buy it later this month but still leave it in Ireland and collect it in spring 2020 would I be liable to pay UK VAT on it, even though it became a UK owned boat when I bought it? Your thoughts please?
    Nobody knows.
    Cynical Scottish very nearly retired engineer who sails a Gib'Sea 96.

  8. #8
    Join Date
    Apr 2012
    Location
    Solent
    Posts
    1,300

    Default Re: VAT: Buying In Europe Now and Collecting The Boat After 'B Day'.

    Quote Originally Posted by langstonelayabout View Post
    OK, I’m about to look at a boat. It looks good in the pictures and the description and price nearly match up. Thing is, I’m in the Solent (UK) and the boat is in Republic of Ireland (Eire).

    The fun thing is something called Brexit, currently scheduled for the end of this month.

    If I were to buy it later this month but still leave it in Ireland and collect it in spring 2020 would I be liable to pay UK VAT on it, even though it became a UK owned boat when I bought it? Your thoughts please?
    Just get someone to bring it back before brexit, then there isn’t a problem. If you have a uk address you can register it on the SSR.
    sabre 27 - Sarabande - Chichester

  9. #9
    Join Date
    Jul 2009
    Location
    North Bucks
    Posts
    782

    Default Re: VAT: Buying In Europe Now and Collecting The Boat After 'B Day'.

    Quote Originally Posted by SteveSarabande View Post
    Just get someone to bring it back before brexit, then there isn’t a problem. If you have a uk address you can register it on the SSR.
    I agree this is the safest route. You could just have it brought back to somewhere in Wales and then a marina invoice would prove that it was moved tax paid within the EU before the UK left. I assume the distance to the nearest marina in Wales wouldn't be very large and you would be with the prevailing wind.
    I'm not sure that owning it in a company and then using it personally is such a good idea. There are lot's of rules about receiving benefits from assets owned by a company, you could even find yourself treated as receiving a taxable benefit each year of 10% of the value of the boat - mind you if you aren't tax resident perhaps that wouldn't matter.
    Andrew

  10. #10
    Join Date
    May 2007
    Posts
    38,325

    Default Re: VAT: Buying In Europe Now and Collecting The Boat After 'B Day'.

    Quote Originally Posted by Rafiki View Post
    ...
    I'm not sure that owning it in a company and then using it personally is such a good idea. There are lot's of rules about receiving benefits from assets owned by a company, you could even find yourself treated as receiving a taxable benefit each year of 10% of the value of the boat - mind you if you aren't tax resident perhaps that wouldn't matter.
    Yes, you'd need proper planning to go the company route. If the boat is less than the VAT threshold in value, the OP could maybe simply buy it from the company when he is resident. I've heard of people doing similar but the rules change all the time so DYOR.
    I believe it can be OK to own a boat via a company, provided the boat is not loss making, but 'yacht' to a taxman is like a red rag to a bull.
    I don't offer advice, just ideas to check out and unqualified opinion.

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