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Old 26-09-2013, 07:37   #1
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UK VAT on a yacht purchased in Australia...

Does anyone know if a yacht manufactured in the EU in 2005, exported for sale and sold in Australia with all import and GST duties fully paid, is then liable for the payment of UK VAT if the yacht then enters the UK?

Many thanks!

Peter
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Old 26-09-2013, 07:55   #2
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Re: UK VAT on a yacht purchased in Australia...

Almost certainly,

1. Especially if it was made in EU then exported and the VAT reclaimed on it when new.

2. The boat has been sold whilst abroad (there is also something about 3 years out of the country) in the rules on the HMRC website:

HM Revenue & Customs

Also this from the HMRC:

3.7 What if I want to re-import a VAT-free boat into the EU?

If a boat that was supplied tax free at purchase is brought back to the EU it must be declared to Customs in the Member State of importation. The seller should ensure that you are fully aware of the need to make an import declaration. VAT will be payable unless some other relief is

Don't forget the VAT will be due in the first EU country it visits on the return trip.

Pete
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Old 26-09-2013, 07:59   #3
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Re: UK VAT on a yacht purchased in Australia...

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Originally Posted by petersuren View Post
Does anyone know if a yacht manufactured in the EU in 2005, exported for sale and sold in Australia with all import and GST duties fully paid, is then liable for the payment of UK VAT if the yacht then enters the UK?

Many thanks!

Peter
Depends. If the yacht is sold outside the EU, even between two EU citizens, it loses its VAT status.

But just because you don't have VAT status doesn't mean you're necessarily liable to pay it when entering UK waters. A non-EU flag vessel which is being sailed by non-EU people (it can't be a charter to an EU skipper or for the primary benefit of EU crew, as that's considered a dodge) can stay in EU waters for 18 months at a time without VAT liability, with liberal rules about resetting the VAT clock (leave EU waters, say to the Channel Islands, for even one day, then sail back -- that will do it).

Note that VAT is not the only potential tax everywhere in the EU. In Spain, for example, there's a nasty tax which applies if you stay in Spain for more than half a tax year. But in the UK, you should be fine on a non-EU flagged boat, as long as you are a non-EU person and you leave every 18 months.


None of the foregoing is legal or tax advice, don't rely on it, blah blah blah, hire a specialist and get a formal opinion before you actually try it.
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Old 26-09-2013, 08:02   #4
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Re: UK VAT on a yacht purchased in Australia...

Quote:
Originally Posted by Pete7 View Post
Almost certainly,

1. Especially if it was made in EU then exported and the VAT reclaimed on it when new.

2. The boat has been sold whilst abroad (there is something about 3 years in the rules on the HMRC website:

HM Revenue & Customs

Also this from the HMRC:

3.7 What if I want to re-import a VAT-free boat into the EU?

If a boat that was supplied tax free at purchase is brought back to the EU it must be declared to Customs in the Member State of importation. The seller should ensure that you are fully aware of the need to make an import declaration. VAT will be payable unless some other relief is

Don't forget the VAT will be due in the first EU country it visits on the return trip.

Pete
If you are an EU citizen, there is also a scheme which allows you to bring the boat back tax free in case you have been living abroad for a certain period of time and are moving back to the Motherland. Google might turn that up for you.
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Old 26-09-2013, 08:15   #5
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Re: UK VAT on a yacht purchased in Australia...

Yes, chattels - bringing your worldly goods back home from the colonies, might work if you are arriving in the UK first, trying to explain this to a Greek or Spanish customs officer, well good luck.


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Old 26-09-2013, 09:32   #6
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Re: UK VAT on a yacht purchased in Australia...

I read up on this a while ago since I'm a UK citizen thinking going back for a visit in the next few yrs.
My reading of it was that if you are a UK citizen resident in a foreign country. You can bring a yacht, registered in that country, to the UK for a period of up to eighteen months without being liable for VAT. If you are returning to re-establish residence then you have, I believe, six months grace. You do mot have to declare your intentions immediately. They seem sort of lax about the whole thing. If asked you must simply provide proof of residence abroad for yourself and registration for the yacht.
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Old 26-09-2013, 09:35   #7
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Re: UK VAT on a yacht purchased in Australia...

Quote:
Originally Posted by Tantalus View Post
I read up on this a while ago since I'm a UK citizen thinking going back for a visit in the next few yrs.
My reading of it was that if you are a UK citizen resident in a foreign country. You can bring a yacht, registered in that country, to the UK for a period of up to eighteen months without being liable for VAT. If you are returning to re-establish residence then you have, I believe, six months grace. You do mot have to declare your intentions immediately. They seem sort of lax about the whole thing. If asked you must simply provide proof of residence abroad for yourself and registration for the yacht.
If you are a UK citizen permanently resident abroad, and you are just coming back for a visit with the intention of leaving pretty soon, I think you are ok.

You do need to be extremely careful, however, do the research, get professional advice, and scrupulously follow the rules. They are NOT lax about VAT and making a mistake can prove to be very expensive and unpleasant.
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Old 26-09-2013, 10:59   #8
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Once your are not a EU tax resident your are entitled to TIR ( temporary import relief ) 18 months. Just carry proof your are resident outside the EU ( note the flag of the boat is irrelevant , its the status of the beneficial owner )


If changing permanent residence then you can use the TOR provisions ( transfer of residence ) which allows you bring in all your possessions free from vat. There is no application process , its just an entitlement.

Note that despite what was said on " new means of transport " vat is due in the country of destination not simply the first country of arrival.

( HM revenue clearly sets that out )

What you do is agree with your vat authorities the route you will take and get written confirmation. You use that confirmation along the way to debs off other vat agencies

Dave
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Old 26-09-2013, 14:37   #9
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Re: UK VAT on a yacht purchased in Australia...

What is the boat? surely if it is tax paid in Oz it is worth more there than bringing it back to Europe and paying more tax.

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Old 26-09-2013, 15:09   #10
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Re: UK VAT on a yacht purchased in Australia...

Quote:
Originally Posted by Pete7 View Post
What is the boat? surely if it is tax paid in Oz it is worth more there than bringing it back to Europe and paying more tax.

Pete
Yes... but if I sail it back...
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