Boats in the EU on 31st Dec update

[Beneteau381]

Interesting thing, they confirm the 3 yr RGR, so in theory, buy a boat in the EU before 31st Dec, register it on the SRR and leave it there so that it preserves its EU vat status and you have three years to get it home. It will be desireable to EU buyers in the future because if they buy here in the UK its vat paid EU status will increase its value by 20 ish%

 

[Graham376]

Interesting thing, they confirm the 3 yr RGR, so in theory, buy a boat in the EU before 31st Dec, register it on the SRR and leave it there so that it preserves its EU vat status and you have three years to get it home. It will be desireable to EU buyers in the future because if they buy here in the UK its vat paid EU status will increase its value by 20 ish%

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I think you're forgetting that RGR can only be claimed by the person who exported it.

 

[Ric]

On the other side of the coin, what happens to UK VAT paid vessels that are already in the EU and wish to stay there? Will their UK vat status mean that they will not be liable to EU VAT?

Certainly any UK boats which want to enter EU waters after 1 Jan 2021 for longer than six months will have to also pay EU VAT, just like NZ, US, Australia flagged yachts. But will boats already there be exempt? Not seen anything writing yet.

 

[dunedin]

I think you're forgetting that RGR can only be claimed by the person who exported it.

That was what I had heard also. So unless owned in U.K. previously, would need to get back here before 31/12/20.
Comes into the bit in the letter about complying with the rules for RGR.
But I am no expert, just noting what other more knowledgeable sources have stated. Worth getting a formal tax lawyer to advise before taking risks on any significant sums.

 

[st599]

On the other side of the coin, what happens to UK VAT paid vessels that are already in the EU and wish to stay there? Will their UK vat status mean that they will not be liable to EU VAT?

Certainly any UK boats which want to enter EU waters after 1 Jan 2021 for longer than six months will have to also pay EU VAT, just like NZ, US, Australia flagged yachts. But will boats already there be exempt? Not seen anything writing yet.

Not sure what you mean by "UK VAT paid vessels that are already in the EU"? If it's in the EU on the 31st December it will have EU VAT paid status and lose its UK VAT paid status, if it's in the UK on the 31st it will have UK VAT paid status and lose its EU VAT paid status.

And Temporary Import to the EU is 18 months not 6 months.

 

[Graham376]

Not sure what you mean by "UK VAT paid vessels that are already in the EU"? If it's in the EU on the 31st December it will have EU VAT paid status and lose its UK VAT paid status, if it's in the UK on the 31st it will have UK VAT paid status and lose its EU VAT paid status.

And Temporary Import to the EU is 18 months not 6 months.

My understanding - As you say, a boat in the EU on 31/12 will keep its status, whatever that is. For those based on the south coast, it seems they can take the boat to EU for New Year to retain EU VAT status and then return it to the UK afterwards to keep UK status. If it later returns to the EU under the same ownership, it should still have its EU status and not be restricted to 18 months. Remember that any change of ownership outside its VAT paid area would lose its status.

 

[st599]

It can't have both UK VAT paid and EU VAT paid status.

 

[Graham376]

It can't have both UK VAT paid and EU VAT paid status.

Can you explain why not? UK and EU both allow Returned Goods Relief. Can you say why the statements below are incorrect, I may be missing something?

We're told by HMRC - If our VAT paid boat is in the EU on 31.12 but returns to the UK (under the same ownership as when it left) next year, UK RGR can be claimed if it meets the criteria, to maintain UK VAT status. O.K. so far?

We're told by the EU that a boat in the EU on 31/12 maintains it's EU status. Correct?
If it later (next year) leaves the EU and visits the UK, it still maintains it's status when it returns to the EU a day/week/month later, under the same ownership. The same would apply if I sailed my EU VAT paid boat from Portugal to Gibraltar or Morocco and back, it won't lose it's status.

 

[Chris_Robb]

Can you explain why not? UK and EU both allow Returned Goods Relief. Can you say why the statements below are incorrect, I may be missing something?

We're told by HMRC - If our VAT paid boat is in the EU on 31.12 but returns to the UK (under the same ownership as when it left) next year, UK RGR can be claimed if it meets the criteria, to maintain UK VAT status. O.K. so far?

We're told by the EU that a boat in the EU on 31/12 maintains it's EU status. Correct?
If it later (next year) leaves the EU and visits the UK, it still maintains it's status when it returns to the EU a day/week/month later, under the same ownership. The same would apply if I sailed my EU VAT paid boat from Portugal to Gibraltar or Morocco and back, it won't lose it's status.

After 3 years things could get mucky. Claiming RGR special circumstances may only be available to EU residents, though an agent resident might be able to claim on your behalf.

 

[Graham376]

After 3 years things could get mucky. Claiming RGR special circumstances may only be available to EU residents, though an agent resident might be able to claim on your behalf.

We know from past history that HMRC have given leeway with the 3 year RGR but how the EU will treat it, we won't know until it happens. I don't know if the owner will have to be resident but doubt if the majority of EU based boats will leave for more than 3 years so it shouldn't be too much of a problem.

 

[Chris_Robb]

Agreed

 

[Bobc]

Can you explain why not? UK and EU both allow Returned Goods Relief. Can you say why the statements below are incorrect, I may be missing something?

We're told by HMRC - If our VAT paid boat is in the EU on 31.12 but returns to the UK (under the same ownership as when it left) next year, UK RGR can be claimed if it meets the criteria, to maintain UK VAT status. O.K. so far?

We're told by the EU that a boat in the EU on 31/12 maintains it's EU status. Correct?
If it later (next year) leaves the EU and visits the UK, it still maintains it's status when it returns to the EU a day/week/month later, under the same ownership. The same would apply if I sailed my EU VAT paid boat from Portugal to Gibraltar or Morocco and back, it won't lose it's status.

I suspect that once you claim RGR, you will then lose your EU VAT paid status.

 

[greeny]

deleted

 

[Chris_Robb]

I suspect that once you claim RGR, you will then lose your EU VAT paid status.

These will be 2 separate jurisdictions, I do not think you will loose your EU VAT Status if your return before 3 years... Are the UK Customs going to ring up EU Customs and say, by the way old boy - this rather nice brit has come home and - what ho - he has claimed GRG - I think not

 

[greeny]

I suspect that once you claim RGR, you will then lose your EU VAT paid status.

Probably, unless you subsequently take it back to the EU within 3 yrs under their RGR rules???? Sooooo complicated!
Backwards, forwards every 2yrs 11 months to maintain VAT status in both areas.

 

[Bobc]

Probably, unless you subsequently take it back to the EU within 3 yrs under their RGR rules???? Sooooo complicated!
Backwards, forwards every 2yrs 11 months to maintain VAT status in both areas.

You can only get EU RGR if you are an EU resident

 

[Bobc]

As with all these things, there is theory and reality. I suspect that if you are a UK citizen and have a UK registered registered boat in the EU at the end of the year, nobody will even approach you about VAT when you bring it back to the UK, and I doubt that anyone in the EU will care too much either. But, they just might...

 

[Poignard]

As with all these things, there is theory and reality. I suspect that if you are a UK citizen and have a UK registered registered boat in the EU at the end of the year, nobody will even approach you about VAT when you bring it back to the UK, and I doubt that anyone in the EU will care too much either. But, they just might...

But as the UK will not be an EU Member State you will, I assume, have to fill in a Customs Declaration form on arrival and that gets you onto the HMRC's books.

 

[Bobc]

But as the UK will not be an EU Member State you will, I assume, have to fill in a Customs Declaration form on arrival and that gets you onto the HMRC's books.

I would have thought so, unless of course they decide to do something else (like online self-declaration).

 

[Chris_Robb]

You can only get EU RGR if you are an EU resident

Up to 3 years you have an exemption. It's if you want special circumstances over 3 years that the problems come. I will see if I can find the EUs advice on this.