Being lent a yacht

[Powersalt]

I am lucky enough to have the offer to borrow a yacht in the channel Islands for a week and we have discusssed the idea of using the sail time to go to France.

Then reality set in a bit. Its a CI owned boat with no vat paid. Therefore how do I as a uk resident stand in sailing into french waters with a non vat paid yacht. I dont own it but I have the use of it?.
Have discussed with the owner and he offered a letter stating that it has been lent to me for my use at no charge to me. We cant charter, (as that would make it simple) as the boat has not been coded. And if we did charter some bright spark said that fench charge vat on the charter cost of the time in frech waters!!!! goodness.

This got me thinking, how do delivery skippers go about things? supposing it was a manufacturers boat on a test sail?shurley there is a easy way to meet customs requirements or do I just have to stick with Guernsey?

Intersted in other peoples experience of such a problem or possible solutions

 

[jfm]

You are dealing with a complex area of law where small differences can mean a lot in terms of the tax liability. In what you describe, Fr VAT will be due once you import the yacht to France. This is the case whether you pay a charter fee or not. The letter from the owner makes zero difference

If the facts were different, the VAT might be different. I'm only answering the EXACT question you asked based on the EXACT circumstances you describe.

It would take too much text to list all the solutions. If the owner imported it to France for around 2 months, and during that period allowed you to use it in French waters only for just one week, then there would be no VAT provided the boat is not EU flagged. But that "solution" and all of the others move the goalposts significantly from where they currently are and therefore probably will not help you

What I've written is how the law is written. If you're happy to gamble, you might of course be able to sail in and out without French officials noticing or applying the law

 

[Powersalt]

Interesting,I wonder how he can import it then let me use it.

Hey I would be really pleased to get any suggestions as to how I might manage a quick visit to France. So ideas appreciated

 

[jfm]

Interesting,I wonder how he can import it then let me use it.

Hey I would be really pleased to get any suggestions as to how I might manage a quick visit to France. So ideas appreciated

As I said, all no-VAT solutions (legal solutions that is, as distinct from chancing your arm) involve moving your goal posts:

1. Code the boat, enter it onto the commercial not pleasure register, hire a captain (=hassle+cost)
2. He imports it for a couple of months as above (hassle/might not want to)
3. You import it as his employee or agent (involves a sham, hence chancing your arm again)
4. Import it purely for purpose of doing work on it (big move of goal posts, or sham)

Probably a few others. Street gossip includes tales of people making VAT invoices on their laser printers but obviously that is chancing a lot more than your arm and isn't a serious suggestion

 

[Powersalt]

Hmmm Thanks . I think its a quick sail out to Sark and around there then and stay safe. Its going to be bad enough playing with the ropes and sails all day.

 

[JerseyDiver]

Powersalt,

I am sure that in reality if you were to carry proof of ownership (guernsey owner) and insurance. Including a letter / confirmation that you as individual have the use of the boat there would be no issues whatsoever.

As you mentioned above, enjoy your week there is plenty to see and do around the CI without the extended sail time to France. I would suggest if you really want the French visit, sail down to St Helier and do a day trip on Condor as a foot passenger £30 pp and you can buy some duty free on board.

Rgds
JD