VAT on old yacht.

[njthake]

I bought a yacht in 2015, she was built in Holland in 1974. The first owner kept her in Majorca for 25years. The second owner (who sold it to me ) sailed USA/ Caribbean and Europe under Austrian flag. I registered it British when I bought it, and have kept her in Greece since then.
I do not have any proof of VAT status. Is there an exemption for yachts over a certain age?
Does anyone know where I stand?

 

[Rappey]

Yachts over a certain age are no more vat exempt than a much newer one but the older ones dont have vat certificates and are usually accepted as vat paid due to age.
Yours predates the vat certificate date..
Im sure someone else will be along to explain in more detail

 

[Poignard]

My boat was built in 1967 and UK VAT was introduced in 1973. She has never been liable for UK VAT. She was in France on the critical date of 31/12/2020 and still is still . She is therefore regarded by the EU as VAT paid.

If I bring her back to the UK before July next year she remains not liable for UK VAT but after that she does become liable.

Leastways that is my understanding of the situation.

There is an ongoing discussion about this and other boating problems caused by Brexit on the Cruising Association website and a lot of research has been done by a dedicated team. I reckon it's worth joining the CA, if only to benefit from that.

 

[Rappey]

1985 or older seems to be the point at which vat is deemed paid..
this may help
The VAT problem: top tips for yacht buyers and owners

 

[Sandy]

Does anyone know where I stand?

After three emails to my MP about this and two wiffy waffy replies from HMRC quoting the legislation, but not answering my question, "What documentary proof will HMRC accept where the originals are long lost and the original owner is dead", I don't think they have thought this through.

Brexit, the gift that keeps on giving.

 

[Tranona]

I bought a yacht in 2015, she was built in Holland in 1974. The first owner kept her in Majorca for 25years. The second owner (who sold it to me ) sailed USA/ Caribbean and Europe under Austrian flag. I registered it British when I bought it, and have kept her in Greece since then.
I do not have any proof of VAT status. Is there an exemption for yachts over a certain age?
Does anyone know where I stand?

In theory your boat is now considered EU VAT paid as it was in the EU on 31/12/2020. This is part of the conditions of the Withdrawal Agreement following Brexit. However although this is the position from Brussels, implementing it is left to individual states and it is unclear what approach each state will take except that Greece (as usual) is making up its own rules that contradict the agreement.

You will find some of the background to the issue in the thread "Unlimited Greek Transit Log..." below.

EU VAT rules are complicated, or rather you need to know the exact details of each change of ownership when the boat left the EU, when it returned and where and when you bought it to determine whether it is in the EU legally from a VAT point of view. Registration is irrelevant.

While the UK was in the EU, British owned and registered yachts were largely left alone even though some had broken VAT rules at some time in the past but now expect more scrutiny.

 

[Sea Devil]

I am British and live legally in France with my boat in the marina. I have just been to the Customs office and with a considerable amount of paperwork registered the boat with a French Boat Passport for Foreigners - and apparently together with this and my Carte de Sejour I may return in the boat from the UK without having to report to customs - that's what the bureau des Douanes told me - yet to try it.
My next concern is that when I sail over to the UK I must report to Yachtline then fill out and post E3331 which asks - Where was the boat built? It's a Beneteau so the answer is France but it was sold new in the UK and I have the original sales receipt and ownership record with several boat name changes all the way to me.
The form also asks for my address - which is in France - so I look forward to my first landfall in the UK post Brexit and how much of a problem it will be with UK Border Force.. There is a copy of the form here: -http://www.michaelbriant.com

 

[sailaboutvic]

Micheal I can see why you should have any problem , your a EU resident in France with a fench flag boat not a British, so as I understand it your fine to sail a boat in the UK without any worries re British VAT , just because you hold a british passport.
As I sure you know you will have to leave within 18 months.
By the way video good , there a few bits that could be corrected by hey well done .

 

[Sea Devil]

Vic sorry - I should have written that my boat in France is British flagged - I am not really worried but suspect the combination of having a French built boat - with my own address being France will raise concerns - I will be visiting as a person and boat that have the right to be in the UK permanently but wonder if the average Border Force Joe will see it like that... Mind you with the way covid things are going in France it's a problem I may not have to worry about for some time..
Really pleased you liked the Video - thank you