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Old 11-11-2020, 13:31   #1
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VAT issues

Hi Everyone

Just to introduce myself, I am getting to the stage in life where retirement is on the horizon, and am preparing for it .

So a little bit about me.

I am not strictly new to boats , my father and grandfather were bass fishermen, and me it was at first speed boats and water skiing , when not helping dad . I progressed on to becoming an electrical Engineer and did a few years testing Marine Projects Boats , now known as Princess Yachts.
It was at this time I realized that being in the middle of a cluster of yachts, all tweaking this or that bit of string to gain a 1/4 of a knot was much more satisfying than just pouring the throttles on.

It was at this time I decided its time to buy a yacht, and I did. However I made one massive mistake, and I have seen all the posts on here about making mistakes when buying a boat but none mentioned this one !!
Apparently I should have discussed it with the wife first ( I didn't ) .
We are divorced now , and the yacht was not mentioned on any of the divorce reasons . ( must have got some other things wrong as well ).
Anyway a few years later I sold the yacht to start a business, and we are back to today.

My intention is to buy a yacht and liveaboard and prepare over a couple of years to go cruising, first the Med and then maybe further afield.
So I will be on here now and again asking loads of questions ( sorry lol )
I do keep an eye on this site and have already learned loads from you.


I am about to purchase a boat and its probably coming from the EU, ( I have a choice of a few at the moment ).
After checking through all of the vat issues I have come to the conclusion its best to buy a boat with vat paid ( and proved ) on original purchase. I know I could buy through a company and remove the vat , and I should then sort the vat when back in the UK . But I have heard that this could lead to problems when revisiting the EU at a later date.
Also when purchasing a British registered vessel in the EU , do you still have to pay " Bill of passage "

If any has done similar or has any input ( apart from telling the wife first ) about purchasing from the EU to UK I would appreciate it very much.

Regards

Paul
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Old 12-11-2020, 03:24   #2
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Re: VAT issues

Greetings and welcome aboard the CF, Paul.
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Old 12-11-2020, 03:38   #3
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VAT issues

If you buy any EU , U.K. flagged or otherwise , that is in “ free circulation within the customs union “ ( ie VAT paid ) then it retain that “ status “ as long as it never leaves the territory of the customs union

Once it does , even for a second , it is deemed exported

There are two Re-importation methods , ( ie if you bring it back to the customs union ) if you are “ established in the EU “ then you can avail of RGR ( returned goods relief ) allowing you to bring the boat back into the EU within 3 years.

If you are not “ established “ in the Eu , ie U.K. resident after 31dec then you can avail of the TIR ( temporary import relief ) ie the boat may tendon inside the customs union for upto 18 months but must be removed after that ( there is no minimum stipulation so one day is sufficient ) the boat can then be brought back into the EU for another 18 months

This puts u at a significant advantage , as assuming you can abide by the 18 month stipulation , you can buy a VAT not paid boat in the med and use it. Something you could not legally do pre Brexit

If you a vat not paid boat back to the U.K. , then you will be subject to whatever import rules the U.K. will apply post Brexit , right now that would mean you would pay U.K. vat

Note that buying a EU vat paid boat in the Eu post Brexit and bringing it back to the U.K. may expose you to U.K. import taxes post Brexit. It’s not clear yet from the HMRC , what import taxes will apply post Brexit
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Old 12-11-2020, 03:59   #4
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Re: VAT issues

Quote:
Originally Posted by paul230 View Post
Hi Everyone




I am about to purchase a boat and its probably coming from the EU, ( I have a choice of a few at the moment ).
After checking through all of the vat issues I have come to the conclusion its best to buy a boat with vat paid ( and proved ) on original purchase. I know I could buy through a company and remove the vat , and I should then sort the vat when back in the UK . But I have heard that this could lead to problems when revisiting the EU at a later date.
Also when purchasing a British registered vessel in the EU , do you still have to pay " Bill of passage "

If any has done similar or has any input ( apart from telling the wife first ) about purchasing from the EU to UK I would appreciate it very much.

Regards

Paul
First UK is not in the EU soon. UK left the EU at 11 p.m. GMT on 31 January 2020.If you now bay yacht pay vat in UK, again if you sail in EU have problem with EU vat.
but if you want to escape vat or pay 9% vat bay and register yacht in
Malta Yacht VAT Registration Scheme.
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