austrian flagged boat

[jimbaerselman]

German friend reg his previously GB flagged into a an offshore co. in Gib. So retained the British reg. in part 1 as a non resident non national. Extra yearly costs of course. Made sense for him.
A

I trust he didn't register it in Gibraltar. Most EU countries have wised up to Channel Islands, Isle of Man and Gibraltar as being not VAT paid. So, entering the EU, a temporary import is required. Whereas for most non-EU countries this will be given for 18 months, for these minor tax havens, the period will be for 1 to 3 months only.

 

[lovezoo]

I trust he didn't register it in Gibraltar. Most EU countries have wised up to Channel Islands, Isle of Man and Gibraltar as being not VAT paid. So, entering the EU, a temporary import is required. Whereas for most non-EU countries this will be given for 18 months, for these minor tax havens, the period will be for 1 to 3 months only.

A small point, but Gibraltar is in the EU.

 

[DownWest]

Jim,
He retained the part one British registry in a UK port but the ownership was with a Gib company. Since he was a Portuguese resident but taking advantage of the lax attitude (then!) to taxing non working foreigners, reging in Portugal would have been very expensive. This was pre EU membership, but as far as I know he still runs it the same way.
A

 

[jimbaerselman]

A small point, but Gibraltar is in the EU.

With exemption from the customs union, which means it's a non-VAT zone, so Gib registered boats are not VAT paid, and if owned by EU residents (which Gibraltarians are) will only be permitted a brief transit through full EU countries.

 

[VexedIllologist]

Port of Registry and VAT-paid status

Sorry Jim,

but the British Port of Registry and the VAT-paid (or unpaid) status are absolutely separate issues, although all too often thought to be related.

For a British vessel there is no legal connection between place of registration and VAT status whatsoever.

It is as possible for a British vessel registered at a port in GB to be non-VAT paid as it is for a British vessel registered in Guernsey, Jersey, the Isle of Man or a British Overseas Territory to be VAT paid!

There are plenty of non GB-registered British vessels that ARE VAT-paid, contrary to your assumption.

I know, I own one!

 

[rogerthebodger]

Can a boat owned by a British registered company register that boat under part 3 there fore the owner is a "British resident" or does that have to be part 1.

The commerdore of my yacht club who is not a British subject or resident has his boat registered in the UK

 

[jimbaerselman]

Sorry Jim,

but the British Port of Registry and the VAT-paid (or unpaid) status are absolutely separate issues, although all too often thought to be related.

You're quite right. The problem is that many EU port officials are well aware that Channel Island and Gibraltar registered boats are non-EU craft. Therefore they have to obtain cruising permits to cruise in the EU. If owned by an EU citizen, and not VAT paid, that permit will be very short - a month or two. If owned by a non-EU citizen (Channel islander or Gibraltarian) that will be for a period up to 18 months. If VAT paid and owned by an EU citizen, the vessel can remain in the EU indefinitely. However, in the last case I don't know whether anyone is going to invoke the RCD directives for permanent imports - perhaps you can clarify that?

Sadly, all quick answers on this subject are over-simplified. The real warning is, if you have any non-EU registered boat, and you are an EU citizen, obtain professional advice before assuming you can freely roam the EU.

 

[jimbaerselman]

Can a boat owned by a British registered company register that boat under part 3 there fore the owner is a "British resident" or does that have to be part 1.

The commerdore of my yacht club who is not a British subject or resident has his boat registered in the UK

Part three is for private individuals who are resident in the UK. However, applications for part three are self policed - so it is easy to bypass the UK residence requrement by just having a UK address (not a 'care of' address).

For a company, only part one applies, and the company must have a uk agent.

 

[VexedIllologist]

EU registry / VAT payment issue

Hello again Jim,

a non-EU registered vessel can remain in the EU indefinitely, but ONLY if it is VAT paid (or deemed to be VAT paid, because of age and location on certain dates). The 18-month 'temporary importation' rule for non-EU residents is only relevant if the vessel is not already VAT paid (or deemed VAT paid) and the vessel will be exported without VAT being paid.

The port or flag of registry is utterly irrelevant to liability for VAT and it is VAT (among other interests) that Customs are concerned about (except, perhaps in Greece, where the Government always seems to tread a different path on such matters to the rest of the EU, even at the risk of breaching EU laws!).

So, if, for example, an American buys a VAT-paid yacht in EU waters and re-registers it so that he can fly the Stars and Stripes, the VAT-paid status is not thereby lost. Similarly, if an EU resident wishes to register his VAT-paid yacht under a non-EU flag - say the Cook Islands, because he likes the look of the ensign - this does not negate the VAT-paid status. It may, however, breach some draconian national law if he is unfortunate enough to be a citizen of such a small-minded State (perhaps one where the registration and tax status of the vessel are combined?).

There are some EU countries where registration and tax status rules are inextricably linked, although I can't remember which at the moment; those who live in the relevant countries are sure to know.

The key issue is that an EU-resident must be using a VAT-paid yacht in EU waters; the port doesn't matter a jot for a British yacht, whether registered at London, Guernsey, Jersey, the Isle of Man, Bermuda, Cayman Islands etc...

__________

FALSE DECLARATIONS

Your comment on the potential for false declarations when registering for the SSR is interesting (i.e. that non-residents could falsely declare themselves resident by virtue only of having an address in Britain, regardless of whether they meet the residency requirements for the SSR); no doubt that is done, but it is most unwise to lie in this way, no matter how relatively economic the option appears at face value. It is, of course, a criminal offence, as an early post pointed out. Aside from that, you can also be confident that in the event of any serious incident leading to a significant insurance claim, you are likely to find yourself left out on a limb.

__________

RCD-issues. An interesting point to raise, but not relevant to a non-EU flag yacht with VAT-paid status that is already in EU waters. Enforcement of RCD requirements is probably as stringent as policing of false declarations for the SSR!