VAT Paid Status for Circumnavigators

Gryphon2

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I have been trying to get my head round if the new rules for VAT for yachts arriving in the UK from outside the EU.

We returned from a 7 year circumnavigation in 2015 and had no issues with VAT. Now as a result of Brexit it seems the rules are that you have to return after a maximum of 3 years which makes a circumnavigation a bit speedy to say the least, otherwise you have to pay VAT again. Will all circumnavigators have to budget for this?

There is also a further complication for boats in French Polynesia which is part of France but not part of the EU for VAT purposes. My understanding for them is that if they return by 30/6/21 they will count for RGR, should they actually make it back that quick.

Please let me know if you have a definitive answer... there seem to be plenty of interpretations of what the rules might mean!
 

Graham376

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I don't think anyone knows for certain yet, focus has been mainly on boats returning from EU.

Pay less import duty and VAT when re-importing goods to the UK - GOV.UK (www.gov.uk)

To allow importers extra time to return goods to Great Britain from the EU, a special extension to the existing grace period has been agreed.
Goods you transported from the UK which were in the EU on 31 December 2020 will be eligible for relief even if the normal 3-year time limit for re-importation has expired. To claim this relief you must re-import these items back to Great Britain by 30 June 2022 and fulfil all the other conditions for Returned Goods Relief.

We may also be able to waive the requirement that the goods must be returned to the UK no more than 3 years after the date of export in special or exceptional circumstances
- Some examples are given but do not include or exclude boats.

EDIT - There is also this exception which may apply for long term cruisers, depending on whether they're considered to still be UK residents or not -
  • professional and personal effects returning with returning UK expatriates Contact the National Import Reliefs Unit for more information on these special circumstances
 
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Tranona

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Nothing has changed since 2015 except of course for the EU now becoming "outside" the UK. So the exceptional circumstances in RGR which longer term cruisers have used still applies, as does the returning residents relief which is of use to some. The Cruising Association is the best source of information on this issue.
 
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