Declaring VAT on Equipment upon leaving Europe for later re-entry. European registere

[Franziska]

Hi,

while the issue is not imminent to us we still are interested how its done best.

I am wondering how I should ensure that I do not have to repay VAT upon re-entry to the EU for boat equipment that was already present when leaving the EU.
Boat will probably leave EU Southbound in 2 years time. Return a couple of years later.

Does one list all items and have the customs at the port of exit sign & stamp it?

Background facts:

BOAT
36 ft cat built in 1995 as one-off in Finland by a private person
Purchased from the previous owner which has Danish nationality
Current owner & skipper has German nationality
Boat VAT was deemed paid by German customs when leaving the country to Netherlands and now France. This has been formally documented.
There was no detailed list of all the gear already on board requested.
Boat is currently in France.
I do not see major issues for the exit and re-entry of the yacht.
Still the equipment onboard seems problematic as it's not documented in detail.

EQUIPMENT
So far all onboard gear had been bought in Europe, but as a lot of items have just been passed on from the previous owners there are no individual receipts.
How about additional equipment bought outside the EU during our cruise?

TENDER
A new tender has been built by myself. I have receipts for the materials which went into this.
Do I need to keep them?
The tender will be marked T/T and is mentioned in the main ships documents.
The insurance does also have documentation of this tender and the fact that it is homebuilt.

Thanks for any info on this!

Franziska

[Pete7]

Franziska,

If you look in the CF library there is the UK departure form if you leave the EU etc by completing part 1 and sending it to Customs. You keep part 2 on board and send this in when you come back. The form requires you to declare goods that have been purchased VAT free.

http://www.cruisersforum.com/forums/...hp?do=cat&id=4

Now, if outbound you were to stop in Alderney and buy a VAT free outboard dinghy engine, then two years later it will be hard to tell exactly how old it is.
Same for a set of sails, two years of continuous sailing and they won't look new anymore. However, it might fall down if you buy in the UK and legitimately claim the VAT back on departure because then there will be a record in the supplying companies VAT books with your receipt and Customs will have stamped the export form so another record with them.

Note, if you read the form it says "if you’re stopping at another location in the EU before proceeding to your final destination, you don’t need to
complete Part 1 of this form". So going via France means you don't need to complete the UK form at Part 1.

There is one exception (but I am not sure how it works) for those who move abroad and then return. House hold type possessions are classed as chattels even if bought abroad and free of import duty because then are your home contents.

In terms of the existing kit, then it would be good to keep the receipts and insurance policies which prove you insured it in the UK well before you departed. The paperwork is really valuable particularly for the boat, I would make sure it is stored safely even if it is ashore whilst you are away. We keep a copy of the multiple VAT receipts on the boat, originals at home secured away. No official is ever going to ask me for VAT receipts from 1988, apart from a future buyer should we ever decide to sell (unlikely) but a set of photocopies isn't going to hurt and might just passify a disgruntled customs officer.

How about a catalog in a spreadsheet format of all the boats contents, its value today with its location on board and a linked photo. Record it now, send a copy to the insurance company and then there is no excuse if something is lost or damaged, the insurance have been told and it is a useful record of the contents.

[Franziska]

Hey thanks for that.

But, how cool is that???!!!! There is a CF library! Didn't know that.
Can one upload technical manuals? As it's behind a login curtain, how about copyright. I'd be willing to share those manuals I found so far, but am worried a tad about copyright.
Can the documents be found by people not logged in? If not I might wave the rules and share.

[Pete7]

Originally Posted by Franziska

Hey thanks for that.

But, how cool is that???!!!! There is a CF library! Didn't know that.
Can one upload technical manuals? As it's behind a login curtain, how about copyright. I'd be willing to share those manuals I found so far, but am worried a tad about copyright.
Can the documents be found by people not logged in? If not I might wave the rules and share.

Upload what you feel will be useful and appropriate. Government forms so long as they are up to date shouldn't be a problem. Manuals for say an old Volvo engine, well VP probably have better things to worry about. Other stuff like photos belonging to a professional photographer are almost a certain no no. Its a judgement call, if someone complains we can take it down pretty quickly.

Pete

[Franziska]

Thanks. Still, can the documents be found by people not logged in?

[kas_1611]

From my understanding of the VAT situation:

An EU VAT Paid (or assumed paid) boat maintains its VAT Paid status for up to 3 years from the date of leaving EU waters. As long as the boat is brought back into EU waters within that 3 year period there is no need to declare or any VAT due.

This would be the same for any equipment already on board the vessel at time of departure as they would be assumed to be VAT Paid regardless of any receipts as they are already an integral part of the whole boat. This would also apply to tenders, outboards and any moveable items.

If you come back after the 3 years then VAT would be liable at the rate applicable for the first port of call. As EU citizens you can not get round this even with a non EU flagged boat.

If you have receipts that show VAT was paid at time of purchase keep them safe as it might help but don't worry if you are only planning on leaving the EU for 2 years

[Franziska]

@pete
Good reason to save répits. Will do.
I'll keep my receipts from now on and try to recover the ones from www purchases in the past as well.


@kas
So if you were to leave with little equipment, buy some stuff at a cheap rate on the way (Asia for example) and use it a lot you might get this into the EU without VAT?

Hard to believe that especially loose items need not be declared when leaving.

I'm not trying to find loopholes btw.

Apart from that, checking in into French or Dutch overseas territories resets the 3 year clock, no?
Are there other means to extend the 3 year time-frame?
To bad UK overseas territories will cease to be part of the EU.

[SaltyMetals]

I find CF extremely useful for all sorts of things. Somewhere someone will know the answer. One other precaution you might consider is to keep the boat on Finnish/Danish/German/NL registration and NOT on a UK registration. That way you will not fall into the Brexit trap (whatever that might be once they have worked things out) but as Kas said absolutely do not go beyond the 3 years from the date of least leaving a EU country. If you stop in Gib best to go to the Alcaidesa marina and then check out with Spanish customs bec Gib will no longer be EU when you come back.

[Franziska]

I agree, CF is a truly remarkable source of info. Sometimes with a grain of salt, but that's ok.

I'm German and so is the boat registration, no need to change that really.

Are the French and Dutch oversees territories resetting the clock? I think they might do.

[Pete7]

Franziska, the various European Colonies have some interesting rules and I wouldn't like to give a general answer to see if they all or if any reset the rules for import duty. Technically its import duty to which any transport costs are added like postage and then VAT on top of the lot as an extra twist

Any uploads to the CF libraries will be visible by anyone and Google's bots.

[Pete7]

Originally Posted by Franziska

So if you were to leave with little equipment, buy some stuff at a cheap rate on the way (Asia for example) and use it a lot you might get this into the EU without VAT?

Individuals only have a small allowance when returning to the UK before import duty becomes liable. I think its £270 for the UK which of course millions of Europeans unilaterally ignore flying into the EU.

I think you are allowed to carryout running repairs and replacement. So on a world cruise a new set of sails whilst in the Far East would be reasonable, but you can't make improvements, so no new teak deck whilst in Burma.

I hope that the import rules have been harmonised across the EU, but you know what it would be worth spending an evening comparing the UK and German Govs websites for the rules.

https://www.gov.uk/duty-free-goods/a...outside-the-eu