VAT post Brexit

[Irish Rover]

No I think you are wrong here. If your boat is Vat paid in the U.K. and you take it to the EU for B day it will have EU goods status. If you then return to the U.K. Within three years it will qualify for RGR . However if you then return to The EU within 3 years it will still retain EU goods status. So s long as you go back and fourth between both areas every three years it will retain its VAT paid status I both areas. However the minute it is sold it will lose it’s VAT paid status in one area. If the transaction takes place in the U.K. it will keep its VAT paid status in the U.K. but lose it’s EU status nd visa-versa.

There will be many people hoping you're right, but I don't think so. Currently I'm not aware of any official pronouncements on this aspect so we're all actually guessing. In practical terms I think this whole area will not turn out to be as important as it is currently being made out to be. As Vic said earlier, UK boats will still be able to enter the EU and stay long term subject to a day trip out once every 18 months and vice versa. The cross border buying and selling market will be slightly restricted but that has benefits as well as drawbacks.

 

[sailaboutvic]

No I think you are wrong here. If your boat is Vat paid in the U.K. and you take it to the EU for B day it will have EU goods status. If you then return to the U.K. Within three years it will qualify for RGR . However if you then return to The EU within 3 years it will still retain EU goods status. So s long as you go back and fourth between both areas every three years it will retain its VAT paid status I both areas. However the minute it is sold it will lose it’s VAT paid status in one area. If the transaction takes place in the U.K. it will keep its VAT paid status in the U.K. but lose it’s EU status nd visa-versa.

Going to use new favourite saying . Economical with the truth.
Let's say I brought your boat private in the UK, the bill of sale won't say where the Acton took place , the boat has EU vat status as on B day it was in the EU .
Now I sail it to Greece , where I am ask to prove EU statue and I produce a marina contract in the pre owner name ,
I ask in what country I brought the boat and I say Portugal,
Who to say other wise ? Are the custom in Greece going to try to track the pre own and ask where the purchase took place ? Some how I don't think so .

Economical with the truth god I love that sentence

 

[Chris_Robb]

My understanding is RGR is not related to residency. I'm open to correction but I believe as long as the person who exported the boat and the person applying for RGR are one and the same then RGR applies.

It would be nice if you are right, but the EU regs specifically state, "if you are a resident you may apply for an extension in extenuating circumstances" or words to that effect. I have tried to get clarification from the commission, but they just talked about the 3 year rule from date of EXPORT.0

 

[Chris_Robb]

Wonder if I can just take the ferry and pay for a weeks berthing in Cherbourg over the new year. Whenever I have been there you just rock up at the office and pay, they never seem to be bothered to check exactly where you are actually moored - even when I left a boat there for three weeks before. So could probably get away without the boat actually being there. Then I will have receipt for EU on 31/12 as well as a UK receipt for my home mooring.

I couldn't possibly co done cheating! You might well do so

 

[Frogmogman]

Still, who cares ?

I'm sure it's all worth it to get blue passports back.

 

[Irish Rover]

It would be nice if you are right, but the EU regs specifically state, "if you are a resident you may apply for an extension in extenuating circumstances" or words to that effect. I have tried to get clarification from the commission, but they just talked about the 3 year rule from date of EXPORT.0

I was responding to your statement
"But will they be able to claim RGR? I think not unless you are a resident of the EU"
which I understood related to the ability to avail of RGR in the normal way for up to 3 years. Extensions are as you say a different mater.

 

[Graham376]

I was responding to your statement
"But will they be able to claim RGR? I think not unless you are a resident of the EU"
which I understood related to the ability to avail of RGR in the normal way for up to 3 years. Extensions are as you say a different mater.

I haven't found an answer to that. Looking at the terms for RGR on UK and EU VAT sites, they state "the goods have to be re-imported by the same person who exported them" Nowhere does it say that person has to be resident, its movement of the goods not the owner, which creates a chargeable event.

OTOH I can't see the EU accepting that a boat arriving on 31st December and then leaving again on 1st January, can keep its VAT paid status.

 

[Irish Rover]

Going to use new favourite saying . Economical with the truth.
Let's say I brought your boat private in the UK, the bill of sale won't say where the Acton took place , the boat has EU vat status as on B day it was in the EU .
Now I sail it to Greece , where I am ask to prove EU statue and I produce a marina contract in the pre owner name ,
I ask in what country I brought the boat and I say Portugal,
Who to say other wise ? Are the custom in Greece going to try to track the pre own and ask where the purchase took place ? Some how I don't think so .

Economical with the truth god I love that sentence

I think in practical terms [and subject to you having no qualms about employing your new favourite saying] you're correct about this and it will be very difficult for the authorities to police these movements from a VAT viewpoint. But there's always a risk of being found out when you're being economical with the truth and the tax man prefers to refer to it as lying.
I'd assume also that the UK will have comprehensive Double Taxation Agreements with all EU countries and it's not beyond the bounds of possibility that boats and other valuable goods availing of RGR would become part of the routine mutual reporting arrangements.

 

[Chris_Robb]

No I think you are wrong here. If your boat is Vat paid in the U.K. and you take it to the EU for B day it will have EU goods status. If you then return to the U.K. Within three years it will qualify for RGR . However if you then return to The EU within 3 years it will still retain EU goods status. So s long as you go back and fourth between both areas every three years it will retain its VAT paid status I both areas. However the minute it is sold it will lose it’s VAT paid status in one area. If the transaction takes place in the U.K. it will keep its VAT paid status in the U.K. but lose it’s EU status nd visa-versa.

I would agree with you

I haven't found an answer to that. Looking at the terms for RGR on UK and EU VAT sites, they state "the goods have to be re-imported by the same person who exported them" Nowhere does it say that person has to be resident, its movement of the goods not the owner, which creates a chargeable event.

OTOH I can't see the EU accepting that a boat arriving on 31st December and then leaving again on 1st January, can keep its VAT paid status.

Graham and Irish - did I really say that you have to be resident for RGR? any vat paid vessel can claim the 3 year exemption, but I am unclear on whether the waiver can be applied for by a non resident - as I have said, I saw the phrase in the legislation that you need to be a resident. I think us Brits will just have to make sure we come in and out every 3 years.

As to the boat that is here for 2 days 31st dec and 1st Jan, I can see know reason to think it wont work - there is no quantitative description.

 

[Irish Rover]

Graham and Irish - did I really say that you have to be resident for RGR?

I believe that's what you wrote in #17 but, in any event, it seems we are all agreed you do not need to be an EU resident to claim RGR.