UK boats could lose EU VAT paid status

[GTom]

Originally Posted by Alita49DS

This is the latest on the subject from the RYA - received this afternoon, 11/04/2019: -

https://www.rya.org.uk/newsevents/e-...m_medium=email

Afraid there will be many "latest news" until October...

[Dockhead]

Originally Posted by Alita49DS

This is the latest on the subject from the RYA - received this afternoon, 11/04/2019: -

https://www.rya.org.uk/newsevents/e-...m_medium=email

That unfortunately confirms that UK boat in EU waters on Brexit day, will LOSE UK VAT (and customs duty) paid status.


So you don't get both -- you get one or the other.


The safety valve is the RGR, but that is not available, to non-residents like me. So I would be allowed to VISIT the UK in my boat, but I could not sell the boat in the UK or to a UK resident without paying VAT all over again.


I suppose one could simply burn the Cherbourg marina receipt in such a case -- IF the boat is not somehow documented or registered as EU VAT paid, but legally UK status is gone once you are in EU waters on the day of Brexit, even if it is only one day.


Brexit is going to be a bother one way or the other.

[Anders]

Brexit is only delayed until 31 October if UK holds election to EU parliament otherwise the delay is until 1 June.

[Dockhead]

Furthermore, and this is really bad, the RYA advise that something like the EU Notice 8 (https://www.gov.uk/government/public...he-uk#section5) will be implemented, and this gives the right to the temporary import regime for non-residents ONLY if the vessel is not registered in the EU (so in the future analogous version, the UK).


So that mean a UK registered boat which is outside the UK on Brexit day cannot be brought back to the UK without going through the RGR process, which is not available to non-residents. Non-residents will need to re-register the boat in an EU country.


My boat is owned by a UK company, so I guess that means I can use RGR, but this must be used within 3 years of leaving the UK.


This is so complicated, and the cost of a screwup is so high, that I think it would be worth taking formal legal advice.

[Dockhead]

And for us non-Europeans who have been cruising in Europe, this will seem hilarious:


"The RYA has been lobbying hard to ensure that the inadequacy of the Schengen visa time frames for UK residents who keep their boats in the EU and who wish to cruise in excess of 90 days on Community waters is understood."

https://www.rya.org.uk/knowledge-adv...-scenario.aspx

The rest of us have been suffering the "inadequacies of the Schengen visa time frames" for years. Get used to it, Brits!

[Tricolor]

I supose that the soup is eaten not as hot as it is served. As most EU tourist countries don't want to loose the big group of brittish second house owners and long stay retired brits..!

[Dockhead]

Originally Posted by Tricolor

I suppose that the soup is eaten not as hot as it is served. As most EU tourist countries don't want to loose the big group of british second house owners and long stay retired brits..!

Sure, but will the wheels of bureaucracy and legislation, turn necessarily in the direction of what these countries "want"? Not necessarily.


What is needed is a sensibly worked out -- in all of its details -- new relationship between non-EU Britain, and the new Britain-less EU. The whole idea of the negotiated Withdrawal Agreement was that a further two year transition period would be provided, during which all these details would be worked out, negotiated, and implemented, in order to provide a smooth transition between being inside and outside of the EU. This is why the no-deal scenario is horrifying for everyone except the hardcore Brexiteers -- there is no transition period, no time to implement anything, so massive disruption to business and economic harm.

[letsgetsailing3]

Originally Posted by Dockhead

This is why the no-deal scenario is horrifying for everyone except the hardcore Brexiteers -- there is no transition period, no time to implement anything, so massive disruption to business and economic harm.

It's not just the hard core Brexiteers who are the problem, but also the Europeans who want to take some sort of punitive action against the UK, who are also a party to the negotiations.

Both sides have something to gain by working together and sorting out a reasonable solution.

Doesn't help those who are disadvantaged by any kind of resolution, however.

[Anders]

They did work together and they did agree on the deal.

[Montanan]

Come now, you are dealing with taxation and politics, words like logical and sensibly don't factor into the discussion.

I'm thinking come the day before and the day of and the day after Brexit Day, the channel is going to look a lot like during the Dunkirk evacuation, full of small craft progressing back and forth.

I suppose it could be called VAT Day for pleasure craft.

Good on the RYA for providing guidance.

Best of luck to you all however and whenever, or if ever brexIT actually happens.

From a Value Added perspective, it does seem that moving the object so as to have a specific VAT paid status is in itself a value addition, either as to retaining UK VAT paid status or EU VAT paid status and such tax paid value seems to become a taxable basis for yet more VAT. After all, for customs duties one has to include the value [cost] of transport into the valuation of the item being imported. ARGHHH!!! Don't let the Revenue Agency learn about that. Quick sweep that thought away,

[Tricolor]

Originally Posted by letsgetsailing3

It's not just the hard core Brexiteers who are the problem, but also the Europeans who want to take some sort of punitive action against the UK, who are also a party to the negotiations.

Both sides have something to gain by working together and sorting out a reasonable solution.

Doesn't help those who are disadvantaged by any kind of resolution, however.

They don't trust each other for a milimeter, and not without reason. The brits must be a scary sample for other countries with exit plans. See again the resistance of France for a delay, 200+ years of french pain from the brits is floating to the surface. Because all of this every deal will be a lousy deal..!

[GTom]

I was wondering what about boats on the Channel Islands and IOM? These AFAIK have their own VAT/customs arrangements with the EU.