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Old 31-08-2013, 00:29   #1
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So Confused About TAX. Please Help

Hi there,

I'm trying to work out my best options in terms of the amount of TAX I'll pay on my new boat I've just bought.

My situation, and idea of cruising, is as follows.

- I'm a dual Citizen of the UK and Australia.
- I'm currently living in Australia and have just bought a boat from a broker in the UK (so have therefore paid VAT at 20%).
- I wish to sail the Med, and then work back to Sydney around 3 years later where I'll then sell the boat.

My questions are..

- Can I claim the VAT back (20%), sail the boat for 3 years and then pay GST of 10% in Australia?
- Where would I need to register the boat? The UK or Australia?
- Would there be any other issues in terms of selling a boat from a UK broker in Australia in terms of import duties, etc?

Any advice on this would be amazing. Thanks in advance,

Simon
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Old 31-08-2013, 01:21   #2
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Re: So confused about TAX. Please help

pity as if you could have proved you are a tax resident of australia you could have avoided paying uk vat,very hard to get it back now.

you will also have to pay tax on it in aus if you import it,and get it aus registered.

uk ssr reg might be best for the med,since it is now vat paid.
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Old 31-08-2013, 01:35   #3
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Re: So confused about TAX. Please help

I've only paid the deposit currently, not the main bulk of the payment.
It's really tricky hey. Being VAT paid in the Uk is good as I'm starting in the Med. But if I knew I was going to end up in Sydney it would probably make more sense registering in Oz.
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Old 31-08-2013, 01:43   #4
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Re: So confused about TAX. Please help

if you are currently a tax payer in the uk their is really no way around it.

but if you are a non resident in the uk/eu,less than 180 days a year you are eligable for tempory import,with aus registration.

you then get 18months before you have to leave eu waters,morocco,tunisia,turkey,then another 18months when you return......a day later
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Old 31-08-2013, 01:50   #5
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Re: So confused about TAX. Please help

Not sure if it works similarly, but we just moved from the US to Spain. We downsized and shipped what furniture we had left and a big-ass Harley motorcycle over. It was a bit of a hassle, but we just had to show that we were changing residency to Spain and that we had actually lived in the US for the last 12 months. We paid no Spanish tax or import duties on anything we brought over. Not sure if it'll work the similarly for a boat, plus different countries involved, so may be no help to you.

Planning to make a boat purchase and downsize again in just over a year to become liveaboards, so will possibly be running into a similar scenario as we will most likely purchase stateside while still Spanish residents. If nothing else, figure we'll register it in one of the states whether we're cruising or not as a change of residency again to get away from Spanish taxes (and the wonderful Spanish bureaucracy).
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Old 31-08-2013, 01:51   #6
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Re: So confused about TAX. Please help

You don't have to pay the Vat if you are a Australian. However you will have move a lot to avoid paying in the future via being the EU countries.
You can register the ship as Australian even though you haven't paid the gst and duty. Customs doesn't care about your boat until you get it back in the country

want ever way you go get that vat back
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Old 31-08-2013, 02:11   #7
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Re: So confused about TAX. Please help

"if you are currently a tax payer in the uk their is really no way around it."

I'm not, I'm living in Australia currently so for tax purposes I'm non UK resident.
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Old 31-08-2013, 02:30   #8
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Re: So confused about TAX. Please help

Quote:
Originally Posted by simonpickard View Post
"if you are currently a tax payer in the uk their is really no way around it."

I'm not, I'm living in Australia currently so for tax purposes I'm non UK resident.


then you need not pay vat in the uk.

contact the local hmrc tax office,and apply for a "tip"(tempory import permit) at the time of sale

HM Revenue & Customs: Imports and purchases from abroad: paying and reclaiming VAT
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Old 31-08-2013, 02:58   #9
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Re: So confused about TAX. Please help

better link here

6.4 Do I have to pay VAT on a vessel intended to be kept outside the EU?
If you are planning to buy a pleasure craft in the UK but intend to keep it permanently outside the Community, you may be eligible to purchase it VAT-free using the Sailaway Boat Scheme. The scheme does not apply to vessels which are for business use or which are exported in the normal way as cargo.

To obtain relief under this scheme, you will need to complete form VAT 436 which must be certified at the last point of departure from the EU. VAT Notice 703/2 Sailaway Boats explains the scheme in more detail and describes the additional procedures that you will need to follow.

In all cases, the UKBA require prior notice of departure

HM Revenue & Customs
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Old 31-08-2013, 04:28   #10
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Re: So confused about TAX. Please help

Quote:
Originally Posted by simonpickard View Post
I'm not, I'm living in Australia currently so for tax purposes I'm non UK resident.
In an ideal world the HMRC would know that (not everyone tells them when they leave!), but in the absence of having anything from them that shows you are not a UK (EU) tax resident then having docs with you to prove you are an Australian Resident and a Tax payer will be useful on your later EU travels (likely you will using your UK passport to save personal Visa hassles - so foreigner customs likely will be interested to make sure you really are a Non EU person, not just a UK resident taking the piss!).

Me would save the VAT on purchase (that's on a new yacht, on a s/h boat (new to you!) can't get it back ) and use the 18 month rule for the boat. For the boat reg / flag I would go for Australia at home address (Aussie taxes only payable upon import on current (by then s/h!) value).....an Aussie boat from day 1 owned by an Aussie = a simple story (officialdom like simple to understand!).

Will need to agree with the builder beforehand that they are ok with selling to you VAT free (could be that the money comes back to you later, could be that you simply don't pay it - me can't remember!). May even be that the boat needs to leave the EU upon sale (for a little while / for the paperwork).....but there are bits of non-eu around in Europe, some even enroute to the Med! (but no idea if that will be neccessary - builder should know as likely will have sold for export from EU before, they just need to be damned sure you are not pulling a fast one as it will be their ass in a sling as well as yours!).

What are you buying?
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