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Old 21-06-2018, 06:27   #1
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VAT and Duty on Ship's Stores -- Faroes, Iceland

Does anyone have any knowledge about whether parts and gear supplied to a UK flag vessel and shipped from the UK to that vessel in Faroes or Iceland, can be zero rated for VAT and can be taken on board duty free?

We still have significant quantities of expensive gear which has not yet been taken on board and I thought perhaps we could save on the VAT (25%! in those countries).
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Old 21-06-2018, 06:41   #2
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Re: VAT and Duty on Ship's Stores -- Faroes, Iceland

Purchase in the UK and then export out of the EU

So the risk falls on the Vendor, therefore if he refuses then you can understand why it may not be worth it for him to do this. He has to have evidence in his VAT accounts to explain why no VAT is being charged.

In the days before the internet, small businesses used to have a leaflet that they filled in the details and handed the leaflet to the customer. This would then be stamped by Customs on departure normally at a ferry or airplane. Initially the customer would be charged VAT at the full rate. If the customer got the leaflet stamped by customs and if the customer then returned the leaflet to the vendor, the VAT would then be refunded by cheque or BACs. If the customer failed to complete the transaction it didn't matter because the vendor had collected VAT, which he subsequently pays to Customs as part of his VAT payment.

So what you need is proof of export, which this paragaph explains:

https://www.gov.uk/guidance/vat-expo...n-eu-countries

There might be another option due to your nationality:

https://www.gov.uk/guidance/vat-reta...ral-principles
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Old 21-06-2018, 06:50   #3
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Re: VAT and Duty on Ship's Stores -- Faroes, Iceland

However, reading your post suggests the Vendor posting items to Faroes or Iceland VAT free, you taking possession and then departing quickly with items as an export without paying VAT.

I am sure it can be done, but you will need to speak to the Vendor who if they are a small supplier like a Suzuki dealer probably needs to ring their accountant and local VAT office for advice. The same will go for other small businesses.

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Old 21-06-2018, 06:57   #4
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Re: VAT and Duty on Ship's Stores -- Faroes, Iceland

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Originally Posted by Pete7 View Post
However, reading your post suggests the Vendor posting items to Faroes or Iceland VAT free, you taking possession and then departing quickly with items as an export without paying VAT.

I am sure it can be done, but you will need to speak to the Vendor who if they area small supplier like a Suzuki dealer probably needs to ring their accountant and local VAT office for advice. The same will go for other small businesses.

Pete
Suzuki dealer -- ha, ha -- I already bought the outboard and will receive it here, VAT paid . A 3.5hp Mercury (Tohatsu).

No this is for a watermaker and bunch of other stuff.

Thanks for the good advice, and I'll discuss with the vendors.
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Old 21-06-2018, 10:34   #5
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Re: VAT and Duty on Ship's Stores -- Faroes, Iceland

It should be routine but every country has different rules. Normally the supplier has to label goods for 'yacht in transit' with the name of the yach and the port on the customs declaration. You should check with customs in the country of import before shipping. Should not be an issue with the exporting country but there may be rules or procedures for the import. I some cases it has to have specific labeling or has to be delivered to a designated port (usually a port of entry). I just imported an engine into Panama and there you have to have the import handled by a licencesd inport agent.
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Old 22-06-2018, 02:41   #6
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Re: VAT and Duty on Ship's Stores -- Faroes, Iceland

Hello dockhead!
I live on Faroe Islands.

I will recommend you to contact the local custom on this E-mail addresse:
taks@taks.fo

or the homepage

www.taks.fo

best regards

Johan
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Old 22-06-2018, 09:29   #7
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Re: VAT and Duty on Ship's Stores -- Faroes, Iceland

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Originally Posted by Birita View Post
Hello dockhead!
I live on Faroe Islands.

I will recommend you to contact the local custom on this E-mail addresse:
taks@taks.fo

or the homepage

www.taks.fo

best regards

Johan
Thank you very much!!
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Old 25-06-2018, 03:01   #8
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Re: VAT and Duty on Ship's Stores -- Faroes, Iceland

This is what I was looking for but couldn't find it. Tripped over the link on the JG Tech website looking at AIS transponders lat night.

Worth a read:

https://www.gov.uk/government/public...-vat-407-notes
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Old 25-06-2018, 03:34   #9
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Re: VAT and Duty on Ship's Stores -- Faroes, Iceland

Hi!

Faroe Islands is a non EU country.
But not mentioned on the list from UK government

best regards

Johan
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Old 25-06-2018, 03:39   #10
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Re: VAT and Duty on Ship's Stores -- Faroes, Iceland

Quote:
Originally Posted by Pete7 View Post
This is what I was looking for but couldn't find it. Tripped over the link on the JG Tech website looking at AIS transponders lat night.

Worth a read:

https://www.gov.uk/government/public...-vat-407-notes
Thanks!

I got a message back from Faroes customs that I can declare the goods "in transit" and that they will be free of VAT and duty.

So it looks like this will work well.
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Old 25-06-2018, 03:41   #11
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Re: VAT and Duty on Ship's Stores -- Faroes, Iceland

Quote:
Originally Posted by Birita View Post
Hi!

Faroe Islands is a non EU country.
But not mentioned on the list from UK government

best regards

Johan
Thanks, Johan. Your contact paid off for me!

Faroe Islands IS mentioned on the list of countries to which tax free sales can be made. Seems to be analogous to the Channel Islands.
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