VAT - 18 months "reset"

[jhe]

I have been cruising my US registered boat for several years in the Med. I've avoided becoming liable for VAT by exiting the EU every 12 months or so to Albanian or Tunesian ports. Now I've exited the Med and I'm wondering whether I actually need to go to a port outside the EU VAT zone (like Norway or the Channel Islands) or whether it would be sufficient to get outside the EU territorial waters for some time. For example, if I were to cross the Bay of Biscay from A Coruna to Brest, would that be sufficient? I keep a regular logbook which would show the positions of the boat - assume those positions would be outside the 12 mile zone claimed by the EU for several days. Anyone with actual experience with this question?

Many thanks!

[slug]

Originally Posted by jhe

I have been cruising my US registered boat for several years in the Med. I've avoided becoming liable for VAT by exiting the EU every 12 months or so to Albanian or Tunesian ports. Now I've exited the Med and I'm wondering whether I actually need to go to a port outside the EU VAT zone (like Norway or the Channel Islands) or whether it would be sufficient to get outside the EU territorial waters for some time. For example, if I were to cross the Bay of Biscay from A Coruna to Brest, would that be sufficient? I keep a regular logbook which would show the positions of the boat - assume those positions would be outside the 12 mile zone claimed by the EU for several days. Anyone with actual experience with this question?

Many thanks!

No , You need port clearance papers from your last port visited to prove your ships movements

[jhe]

Thank you, Slug. Is there a piece of paper that says this?

[OrinocoFlo]

You need port clearance papers from your last port visited to prove your ships movements.

Pam

[Doubleplay]

Clear into a country outside EU. It's simple.

[Kalinka1]

A lot of it depends on the particular customs Officer! Ireland UK and Norway didn't require and clearance papers from anywhere as they don't issue them! When outside the 12 mile limit take a picture of your lat and long from your gps. I have found all three Countries pretty relaxed and helpful with dealing with the Vat and customs in general. Your initial attitude can make all the difference. We were always given an extention when we needed it.

[barnakiel]

My friends took their boat to Morocco and back for this.


Sailing out of one EU port to another EU port is not enough, even if they were on two sides of the ocean.


b.

[IslandInfedel]

What value does that tax add by the way?

[barnakiel]

Originally Posted by IslandInfedel

What value does that tax add by the way?

Same like any other tax.


It adds value to the pocket of the one who is pocketing it.


b.

[Montanan]

The vessel must reenter the EU tariff zone from a foreign non-EU tariff place to be able to claim relief from VAT as a temporary import.

All very straight forward, just like other goods. The relief is derived by being granted a waiver as a temporary import from outside the EU. To be imported into the EU, a good must have first been exported from a country into the EU. Hence, international waters does not derive an export, hence no relief by temporary waiver for an import.

Just like departing to international waters does not avail a new cruising license for voyaging in the waters of the USA. You must return from a foreign port or place.

The UK has left the EU but not sure whether entering the UK reset the EU VAT clock during the remaining "transition" period.

Like all things Brexit, a confusing mess.

[Montanan]

Originally Posted by IslandInfedel

What value does that tax add by the way?

An EU VAT paid vessel has greater value to an EU resident because they don't have to pay EU VAT anew. An EU VAT paid vessel has modest value to a non-EU resident, except providing for avoiding the 18 month departure from the EU to reset the claim of relief from VAT, by establishing the vessel as a temporary import to the EU.

Much uncertainty on whether the UK and the EU come to a deal and the terms thereof as to VAT exposure on vessels for UK residents and EU residents. As the date of end of transition comes near, the owners of vessels will need to be watching the scope of law as to determining where they need to position their vessels so as to avoid VAT in the UK or the EU.

[IslandInfedel]

Originally Posted by Montanan

An EU VAT paid vessel has greater value to an EU resident because they don't have to pay EU VAT anew. An EU VAT paid vessel has modest value to a non-EU resident, except providing for avoiding the 18 month departure from the EU to reset the claim of relief from VAT, by establishing the vessel as a temporary import to the EU.

Much uncertainty on whether the UK and the EU come to a deal and the terms thereof as to VAT exposure on vessels for UK residents and EU residents. As the date of end of transition comes near, the owners of vessels will need to be watching the scope of law as to determining where they need to position their vessels so as to avoid VAT in the UK or the EU.

None of that seems to benefit the craft in form or function, I am not seeing the value.

Maybe TAT would be a better name, tax..added tax.