Another Brexit impact question...

Jodelpilot36

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I've recently read several threads on the impact of Brexit and how it affects boat purchase, taxation and registration in terms of location.

However I haven't seen anything that explained (least to my mind) what would prevent someone buying a Yacht in the EU (say in Greece), that was VAT paid and then moving it to the UK and keeping it there for an extended period 2 or three years, whilst leaving it registered in Greece ? Assuming git was VAT paid already in the EU would you still have to pay UK VAT (or its equivalent) in the above scenario if you resided in the UK.

Is this possible...would you have to return to the EU for a nominal period to reset the clock?

I appreciate I may have missed a thread that covered this so my apologies if Im repeating a question here but I'd be grateful for any views or opinions.

Thanks.
 

Chris_Robb

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I've recently read several threads on the impact of Brexit and how it affects boat purchase, taxation and registration in terms of location.

However I haven't seen anything that explained (least to my mind) what would prevent someone buying a Yacht in the EU (say in Greece), that was VAT paid and then moving it to the UK and keeping it there for an extended period 2 or three years, whilst leaving it registered in Greece ? Assuming git was VAT paid already in the EU would you still have to pay UK VAT (or its equivalent) in the above scenario if you resided in the UK.

Is this possible...would you have to return to the EU for a nominal period to reset the clock?

I appreciate I may have missed a thread that covered this so my apologies if Im repeating a question here but I'd be grateful for any views or opinions.

Thanks.
If you buy a yacht second hand in Greece from now on with vat paid in the eu or uk originally, you wont be able to come back to the UK without paying VAT again as the exporter -the guy who sold you the boat, and the Importer - you, are not the same person.

In addition as a resident of the UK you would NOT be able to use Temporary admission as that is not available to any resident.

If you want to buy a yacht and keep it in the UK then you will have to buy it in the UK.

The effect of this is that if you want to buy a yacht for the UK, then you have to buy it in the UK, or face paying VAT again on an eu yacht. This is good for UK Brokers!
 

Seven Spades

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On the plus side you can now buy boats vat free and non-CE marked boats and use them in the EU but you will have to re-set the clock every 18 months by taking the boat outside the EU.
 

Chris_Robb

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Bearing in mind what has happened this last12 months re Covid, people need to be aware that circumstances may dictate at some time in the future they would not be able to move their boat out of the EU to take advantage of the 18 month rule
The enforcement of this rule has been declared Exceptional circumstances, so that is not a problem, or at least should not be so. My Greek contacts confirm this.
 

Graham376

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some time in the future circumstances may dictate at they would not be able to move their boat out of the EU to take advantage of the 18 month rule

"Some time in the future" starts on Thursday here, Portugal going into lockdown so no doubt boat movements will be stopped again. I can see this happening throughout this spring, even all year in various countries.
 

Jodelpilot36

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On the plus side you can now buy boats vat free and non-CE marked boats and use them in the EU but you will have to re-set the clock every 18 months by taking the boat outside the EU.
is that for new or second hand boats? Also a bit confused that if I buy "in" the UK its VAT free but if I import into the UK I pay VAT? But appreciate taking the time for the reply.
 

Jodelpilot36

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If you buy a yacht second hand in Greece from now on with vat paid in the eu or uk originally, you wont be able to come back to the UK without paying VAT again as the exporter -the guy who sold you the boat, and the Importer - you, are not the same person.

In addition as a resident of the UK you would NOT be able to use Temporary admission as that is not available to any resident.

If you want to buy a yacht and keep it in the UK then you will have to buy it in the UK.

The effect of this is that if you want to buy a yacht for the UK, then you have to buy it in the UK, or face paying VAT again on an eu yacht. This is good for UK Brokers!
Thanks for the reply...ah well, there goes a bargain.
 

Chris_Robb

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is that for new or second hand boats? Also a bit confused that if I buy "in" the UK its VAT free but if I import into the UK I pay VAT? But appreciate taking the time for the reply.
If you buy in the UK new (or any other EU state) you could buy VAT free and export it at once from the UK, and just use Temporary Admission in the EU (18 month job)

But the golden rule for TA is that you are NOT a resident of the host country. So bring anything to this country bought abroad you pay vat, and note well - that if you get a residency permit for Greece or any other, you can no longer use TA to access the EU.
simples!
 

sailaboutvic

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Once again it's all a guessing game ,
If your aboard , sell aboard , not only you get a better price but the market is much bigger .
Look at it another way .
You live in the UK and looking for a weekend boat one you can go off for a few weeks a year on holiday , are you going to buy a Cruising boat and pay big marinas fees ? not likely ,
On the other hand you looking at buying a boat to go off cruising in the EU , are you going to buy a boat that's not VAT paid in the EU?
again not likely , so for any of us who have a big cruising boat best to sell in the EU .
 

Graham376

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On the other hand you looking at buying a boat to go off cruising in the EU , are you going to buy a boat that's not VAT paid in the EU?
again not likely , so for any of us who have a big cruising boat best to sell in the EU .

Mine will also be sold with a free mooring so, no VAT or marina fees to pay. Flights often <£10 so cheap holidays aboard.
 

nortada

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Once again it's all a guessing game ,
If your aboard , sell aboard , not only you get a better price but the market is much bigger .
Look at it another way .
You live in the UK and looking for a weekend boat one you can go off for a few weeks a year on holiday , are you going to buy a Cruising boat and pay big marinas fees ? not likely ,
On the other hand you looking at buying a boat to go off cruising in the EU , are you going to buy a boat that's not VAT paid in the EU?
again not likely , so for any of us who have a big cruising boat best to sell in the EU .

How do you define a big cruising boat - size or value❓

In the context of this discussion, I would suggest value.

This raises the next question - what is a valuable boat❓

Rather than a fixed price, I would suggest a percentage of your disposable assets; say 20% of disposable wealth❓
 

sailaboutvic

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To be fair , every British boat we known over the years that given up for what every reason , we know of none that decided to take the boat back .
We do know of two boats one was on the way to sailing back because they wanted to give up the cruising life and keep it back in the uk for local sailing and another one who had a buyer back in the UK and plus the boat they wanted to replace their boat with was on sale in the UK so it was convenient to sailed back .
Both are now staying in EU
 

sailaboutvic

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How do you define a big cruising boat - size or value❓

In the context of this discussion, I would suggest value.

This raises the next question - what is a valuable boat❓

Rather than a fixed price, I would suggest a percentage of your disposable assets; say 20% of disposable wealth❓
Point I'm making is for them who didn't export they boat out of the UK and brought 12 mts plus boats in the EU are very unlikely to sailing back to the UK and Pay VAT just to have a weekend boat.
It messed us up a bit as we did have plain to one day sail back north and sail Ireland and the UK before heading to Holland , Denmark and Sweden , now that's not going to happen .
And if by any chance it did the UK would have to be missed out .
 
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