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Old 11-07-2016, 03:12   #1
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Brexit and VAT

Just a thought, will UK residents be able to buy ex-charter boats from EU countries (non VAT paid) , without paying VAT, when they become non EU residents?
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Old 11-07-2016, 03:22   #2
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Re: Brexit and VAT

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Just a thought, will UK residents be able to buy ex-charter boats from EU countries (non VAT paid) , without paying VAT, when they become non EU residents?
Right now the UK is still part of the EU, nothing has changed. And it is very well possible that nothing will change, ie. that the UK will simply remain in the EU.

Until the UK actually leaves the EU (which is actually not very likely) we won't know anything about the consequences for yacht owners...
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Old 11-07-2016, 03:24   #3
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Re: Brexit and VAT

Estimated 2 years to find out all the effects of Brexit. So this is a guess.

I expect Britain will replace the EU VAT with its own variation to replace lost revenue from VAT sharing under the EU.

That would mean purchasing an EU boat and then registering it in Britain would be likely to incur tax... even if you paid VAT in the country where you bought it.
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Old 11-07-2016, 03:44   #4
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Re: Brexit and VAT

Unfortunately it looks like also if you want to sell your UK registered boat in EU the new buyer will need to pay VAT

e.g. if you are in my place e.g. having a UK registered boat in the Med the things are going really bad... on top the UK registered vessel may need to go out of EU every 18 months..

e.g. better get Dutch flag assuming they do not get out of EU also...
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Old 11-07-2016, 04:08   #5
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Re: Brexit and VAT

The real answer is that as of now, no one knows.

No point in borrowing trouble until the trouble is identified....
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Old 11-07-2016, 04:32   #6
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Re: Brexit and VAT

I do not agree at all !

remember all Jews in Nazi Germany did not believe that they can be killed and waited until they have been sent to the concentration camps.. same with the Armenians in Turkey..

e.g. be prepared and act as soon as the article 50 has been about to be invoked

the VAT and 18 months will be 100% there no one cares about boats there si bigger problems to be solved..
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Old 11-07-2016, 04:37   #7
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Re: Brexit and VAT

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Originally Posted by vtomanov View Post
I do not agree at all !

remember all Jews in Nazi Germany did not believe that they can be killed and waited until they have been sent to the concentration camps.. same with the Armenians in Turkey..

e.g. be prepared and act as soon as the article 50 has been about to be invoked

the VAT and 18 months will be 100% there no one cares about boats there si bigger problems to be solved..
You do not have to agree.
You also do not know.
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Old 11-07-2016, 06:11   #8
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Re: Brexit and VAT

While we won't know for certain until the new agreements are made, we can make some educated guesses.


If the boat was VAT paid under the current EU (including UK VAT), it will likely retain it's EU VAT paid status after the split. The reason is the owner paid an EU VAT that was legitimate at the time of the purchase. If it was taken to court, I would think the fact the owner paid a legitimate EU VAT would hold up in most cases.


Boats bought by UK citizens after the break will likely be treated similarly to how USA citizens are dealt with (you don't lose VAT paid status by selling as long as you keep the paperwork showing payment).


The interesting thing will be if this forces a change in the rules. If you add up all the USA, Canadian and Aussie boats in Med marinas, it's not a big loss if you push them out. UK boats make up a pretty good percentage of the boats in a lot of those marinas (probably similar on the southwest side of the Channel). If those marinas start emptying out as UK boats head home or sold off on the cheap, that may create the political will to change the rules.
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Old 11-07-2016, 06:42   #9
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Re: Brexit and VAT

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Originally Posted by TurninTurtle View Post
I expect Britain will replace the EU VAT with its own variation to replace lost revenue from VAT sharing under the EU.
There is no VAT sharing in the EU. I assume that UK VAT will just pretty much remain as it is. (VAT is not a specific EU thing after all...).
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Old 11-07-2016, 06:51   #10
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Re: Brexit and VAT

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Originally Posted by valhalla360 View Post
While we won't know for certain until the new agreements are made, we can make some educated guesses.


If the boat was VAT paid under the current EU (including UK VAT), it will likely retain it's EU VAT paid status after the split. The reason is the owner paid an EU VAT that was legitimate at the time of the purchase. If it was taken to court, I would think the fact the owner paid a legitimate EU VAT would hold up in most cases.


Boats bought by UK citizens after the break will likely be treated similarly to how USA citizens are dealt with (you don't lose VAT paid status by selling as long as you keep the paperwork showing payment).


The interesting thing will be if this forces a change in the rules. If you add up all the USA, Canadian and Aussie boats in Med marinas, it's not a big loss if you push them out. UK boats make up a pretty good percentage of the boats in a lot of those marinas (probably similar on the southwest side of the Channel). If those marinas start emptying out as UK boats head home or sold off on the cheap, that may create the political will to change the rules.
Again.
Its a guess.
Educated or not.
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Old 11-07-2016, 07:39   #11
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Re: Brexit and VAT

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Again.
Its a guess.
Educated or not.
World of difference between a WAG and a SWAG.
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Old 11-07-2016, 07:41   #12
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Brexit and VAT

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Originally Posted by vtomanov View Post
there no one cares about boats there si bigger problems to be solved..
That is why Lawyers acting on behalf of CA and RYA will if necessary go to the EU courts to preserve the vat status of UK yachts that were VAT paid during the time the UK was part of the EU.



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Old 11-07-2016, 07:51   #13
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Re: Brexit and VAT

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That is why Lawyers acting on behalf of CA and RYA will if necessary go to the EU courts to preserve the vat status of UK yachts that were VAT paid during the time the UK was part of the EU.



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What will be the Jurisdictional Powers IF UK does exit the EU?
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Old 11-07-2016, 08:22   #14
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Re: Brexit and VAT

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What will be the Jurisdictional Powers IF UK does exit the EU?
I'm sure there will be lawyers happy to take the case on. Unless the EU decides to throw due process completely out the window, there is every reason to expect them to honor legitimately paid EU VAT (even though it was paid to the UK while they were part of the EU).
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Old 11-07-2016, 08:26   #15
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Re: Brexit and VAT

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What will be the Jurisdictional Powers IF UK does exit the EU?
The EU allows foreign flagged vessels to remain indefinitely if VAT is paid in the EU, so UK boats should be treated the same. It's unlikely that there will be anything in the eu vat laws that nullifies a vat status upon a Brexit.

If it does, then anyone who paid vat in the UK and then registered in any Wu state would have to pay vat again.

The EU will probably not care to deal with this in the Brexit negotiations, so it might require lawyers, EU courts and perhaps even a test case to get it settled


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