Another VAT question sorry!

[BrianH]

To take advantage of the Temporary Import rule that jfm suggests the boat has to be registered outside the EU (as well as being owned by a non EU resident). Hence the suggestion of Channel Islands or Cayman Islands.

Of course wait a few years and who knows what will be possible for UK owned and registered boats! Must have a word with Boris.

Ah, I hadn't quite caught any nuance of non-EU registration, thinking that flag had no relevance, only places of transaction and owner's residence. No doubt all due to my own searches for a flag of convenience before MCA Pt I became more accessible.

 

[Blue Sunray]

But he still needs to register somewhere and CH is not an option.

Belgium was in fashion, especially with the French looking to avoid their country's equipment regulations, but has recently indicated it will no longer be the European flag of convenience and will be imposing some sort of restrictions for non-Belgians.

There are a number of possibilities, the UK Part I with a UK corporate representative being one - as with other UK off-shore dependencies - but they can cost. As another CH resident I followed that route (despite later gaining Swiss naturalisation), easier (or at least cheaper) with the nationality, but after the referendum, less attractive. It all depends on the OP's own nationality and preferences, I suppose.

Jersey might also be possible if the OP is a UK Subject and pays a small amount for a local rep?

 

[Tranona]

Jersey might also be possible if the OP is a UK Subject and pays a small amount for a local rep?

Does not have to be a UK citizen to use the Jersey register - nor the Cayman Islands.

 

[Tranona]

Ah, I hadn't quite caught any nuance of non-EU registration, thinking that flag had no relevance, only places of transaction and owner's residence. No doubt all due to my own searches for a flag of convenience before MCA Pt I became more accessible.

Temporary Importation is there for bona fide visitors from outside the EU. There are limitations on the use of the boat and the duration is 18 months, but as jfm says a short evidenced period outside the EU and the clock starts again. If the boat is sold in the EU VAT then becomes payable.

 

[Blue Sunray]

Does not have to be a UK citizen to use the Jersey register.

Are you sure?

Your vessel is eligible if:

you or your company are part of the Commonwealth, EU, British Isles, Crown Dependencies or Overseas Territories

 

[Tranona]

Are you sure?

Note the eligibility of "a company".

 

[jfm]

But he still needs to register somewhere and CH is not an option.

Belgium was in fashion, especially with the French looking to avoid their country's equipment regulations, but has recently indicated it will no longer be the European flag of convenience and will be imposing some sort of restrictions for non-Belgians.

There are a number of possibilities, the UK Part I with a UK corporate representative being one - as with other UK off-shore dependencies - but they can cost. As another CH resident I followed that route (despite later gaining Swiss naturalisation), easier (or at least cheaper) with the nationality, but after the referendum, less attractive. It all depends on the OP's own nationality and preferences, I suppose.

No. He has to flag in a non eu state, as I have already explained clearly.

 

[jfm]

Note the eligibility of "a company".

Tranona you need to be very careful using a company and TI. A condition of TI is that the owner uses it himself and doesn't let another eu resident use it - a simple company ownership can easily fall foul of that obviously. It is possible but needs a lot of work that is too much to explain properly here.
This is all a non problem: there are plenty of non eu registers that OP can use so long as the boat isn't a jallopy

 

[Blue Sunray]

Tranona you need to be very careful using a company and TI. A condition of TI is that the owner uses it himself and doesn't let another eu resident use it - a simple company ownership can easily fall foul of that obviously. It is possible but needs a lot of work that is too much to explain properly here.
This is all a non problem: there are plenty of non eu registers that OP can use so long as the boat isn't a jallopy

:encouragement:

 

[pathfinderstu]

Has anybody ever actually been fined by the vat people for having an old non vat paid awb in the EU. come to think of it we have just pulled out of EU so that should complicate things further

 

[Tranona]

Has anybody ever actually been fined by the vat people for having an old non vat paid awb in the EU. come to think of it we have just pulled out of EU so that should complicate things further

Depends on when it was imported. Pretty sure you will find examples of people being fined for smuggling boats in without paying VAT, just as you may well find some who might not have been caught. Not the sort of information that finds its way into the public domain though.

The UK has not left the EU, so it is pointless to speculate what the situation will be when the break does come.

 

[BrianH]

No. He has to flag in a non eu state, as I have already explained clearly.

You did indeed, I did not read clearly. Nor did I think clearly.

I plead cabin temperature in the Adriatic of 37°Celsius; eyes half-closed by brow-sweat and mind numbed by discomfort.

 

[jfm]

That's definitely a good excuse :encouragement::encouragement::encouragement:

 

[neil1967]

May be a naive question, but do you have to pay the VAT in the country of registration? I thought it was the country of importation, so with a UK flagged boat being imported from outside the EU into (say) Greece, you would pay VAT to the Greeks. Assuming the OP is a UK national (but Swiss resident), is he not eligible to register the boat on the SSR whilst it is in Turkey and then import it into the country of his choice and then pay the VAT there? I don't know how you would import the yacht into Switzerland, but I assume there is a way.......

 

[Tranona]

May be a naive question, but do you have to pay the VAT in the country of registration? I thought it was the country of importation, so with a UK flagged boat being imported from outside the EU into (say) Greece, you would pay VAT to the Greeks. Assuming the OP is a UK national (but Swiss resident), is he not eligible to register the boat on the SSR whilst it is in Turkey and then import it into the country of his choice and then pay the VAT there? I don't know how you would import the yacht into Switzerland, but I assume there is a way.......

The rules are VAT is paid in the first EU state of entry. Country of registration (and citizenship of owner) is normally irrelevant, although non EU residents can use TI if the boat is not being sold in the EU. However, it is possible to agree VAT payment in, say the UK if the boat is to be used there and transit other EU states without paying there.

Little of this is relevant to the OP who as a non resident can use a boat within the EU under the TI rules.

 

[jfm]

May be a naive question, but do you have to pay the VAT in the country of registration?

Nope

I thought it was the country of importation, so with a UK flagged boat being imported from outside the EU into (say) Greece, you would pay VAT to the Greeks.

Yep

Assuming the OP is a UK national (but Swiss resident), is he not eligible to register the boat on the SSR whilst it is in Turkey and then import it into the country of his choice and then pay the VAT there?

Sure he can, but why would he want to when he is allowed (under TI relief, qv) to sail his boat around the Med or anywhere without paying any EU VAT at all?

 

[BrianH]

Assuming the OP is a UK national (but Swiss resident), is he not eligible to register the boat on the SSR .

Not unless he pays taxes in the UK otherwise SSR registration requires UK residency.

I don't know how you would import the yacht into Switzerland, but I assume there is a way.......

By truck or having a powerful engine to navigate the Rhine upstream to Basel. If you can find - and pay for - a berth on one of the many Swiss lakes, heavily over-subscribed. Then begin the administrative process to register your boat locally in the canton within which it will lie, together with studying for, and obtaining, the Swiss Segelschein Binnensee necessary to sail it.

Unless, of course, you mean only notionally ....?

Edit: I am assuming the only way to register a VAT transaction is to declare the goods physically at the border for customs inspection and value assessment.


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