VAT question- Norwegian registered boat, UK/Irish citizen

[RichNjord]

Hi,


I worked in Norway last summer, and am doing the same this summer. I work from March to October. I bought a Halberg Rassy Monsun 31 last year (built in 1979), which is registered here in Norway (the boat has never left Norway).


Next year I won't be working in Norway, and after putting the boat back in the water in April 25, I intend to leave Norway. I'm trying to weigh up my options regarding VAT rules and requirements as to where I should go- the UK, or somewhere in Europe. I'm hoping someone may be able to make it clearer for me.


So, Norway registered boat, and I am a UK national, but also have Irish citizenship.



If I go to the UK, I think I have to pay VAT no matter what, unless I am intending to then export the boat. But to be eligible I must be resident outside of the UK (this is hard to prove as I have two jobs so pay Norwegian tax and also UK tax). If I take it somewhere in Europe, I imagine they will assume I am just visiting as it's Norwegian registered- I understand that I don't need to clear out if traveling from Norway to Denmark or Sweden.



I'd love to find a home for the boat somewhere in the EU, and am not averse to paying EU VAT if I absolutely have to, I just wonder if anyone has experience of something similar to the above and knows what the options are regarding avoiding VAT or not? I searched all the forums and couldn't found anything that relates to my circumstances in terms of country of boat registration and my nationality.



Any advice greatly appreciated

[bpbpbp]

Did you get any answers? I'm keen to know too.

Looking at resources like this - https://www.rightboat.com/blog/used-...we-know-so-far - I am still confused as to if you must pay VAT at 20%, is that on the purchase price or the price when new?

Also, are there any countries of build, and ages of boats, that mean a vessel can never be brought to the UK - eg because it does not meet standards?

Out of interest, what work are you doing in Norway? I spent some time in Tromso and Lofoten and loved it!

[boatman61]

I would register it on the SSR in the UK if you have a UK address and take advantage of the 18mth rule for foreign vessels in the EU.
To register it in an EU country you will need to produce a CE for the boat and in some countries a separate one for the engine on top of the VAT. In the UK the CE only comes into play should/when you want to sell the boat.
You could then base the boat in say S Spain or Portugal and just pop over to Tangier for a night to restart your clock.. alternatively there's Greece or Sicily where its a short hop to either Turkey or Tunisia for a couple of nights.

[RichNjord]

Hi, thanks for the replies, don't check in here too often. So if I registered it on the SSR would it be exempt from VAT when I take it into the UK? It does say on the UK ship register website that you can register no matter where the boat is based. Seems like an almost too easy way to avoid VAT though, feel I may be missing something!

[RichNjord]

Originally Posted by bpbpbp

Out of interest, what work are you doing in Norway? I spent some time in Tromso and Lofoten and loved it!

I manage a dive resort (scuba diving). Beautiful country and the Fjords are amazing to sail

[boatman61]

Originally Posted by RichNjord

Hi, thanks for the replies, don't check in here too often. So if I registered it on the SSR would it be exempt from VAT when I take it into the UK? It does say on the UK ship register website that you can register no matter where the boat is based. Seems like an almost too easy way to avoid VAT though, feel I may be missing something!

No.. you would not be exempt from UK VAT if you took it back to the UK.
Also, for a UK citizen there's no 18mth rule in the UK.. not sure there's one for an EU reg boat either.

[Tupaia]

Originally Posted by boatman61

No.. you would not be exempt from UK VAT if you took it back to the UK.
Also, for a UK citizen there's no 18mth rule in the UK.. not sure there's one for an EU reg boat either.

You can take a non UK VAT paid boat into the UK if you are a UK Citizen on a temporary import (18months) provided that you are not UK resident and do not become resident while the boat is there.

Residence is very well defined by Inland Revenue/HMRC. There are specific statutory residency tests based on your ties to the UK and the number of days.

https://www.gov.uk/government/public...-test-srt-rdr3

You can still be paying tax in the UK without being UK resident for tax purposes.

If you register the vessel under UK SSR you state on the registration form that you are resident in the UK therefore the above would not apply and you would be liable for VAT.

A foreign, non EU registered vessel can be VAT paid (subject to paying VAT). If the vessel is owned by an EU resident it will be liable for VAT in the EU.


Hope this helps