Boat purchased in UK - EU VAT

[Seegull]

Hello,
I appreciate this is a very thorny topic.
Anyway;
If a second hand boat is purchased in the UK, but seasonally used in the EU.
At what point is EU VAT payable?
Can the boat just be taken out of the EU before 180 days, and then taken back a few days/weeks later?
Any advise welcome!

 

[st599]

Depends on the residency of the person taking it in. Could be due immediately.

 

[Seegull]

If Non-EU resident.

 

[dunedin]

As per post #2 this depends on where the owner(s) is/are resident.

A UK resident should be able to take a non-EU VAT paid boat into the EU for up to 18 months (not 180 days) without paying EU VAT. Exiting the EU even for a brief period ”resets the clock” and can stay another 18 months.

Very different rules apply to people and Schengen limits - which don‘t have the same ability to reset.

PS. Not sure if having an EU passport might cause any issues, even if non-EU resident.

 

[Seegull]

Thanks for the clarification.
A trip back and forth over the channel every 18 months sounds fine.

How are "older" VAT exempt boats effected? or is there no such thing in this situation?

eg.
1985 Boat purchased new in Netherlands.
1996 Boat imported to UK
2024 Boat sails to/around EU, - now and then (<18months) crosses back and forth to UK

Would any VAT have ever been paid...?

 

[westernman]

Thanks for the clarification.
A trip back and forth over the channel every 18 months sounds fine.

How are "older" VAT exempt boats effected? or is there no such thing in this situation?

eg.
1985 Boat purchased new in Netherlands.
1996 Boat imported to UK
2024 Boat sails to/around EU, - now and then (<18months) crosses back and forth to UK

Would any VAT have ever been paid...?

No VAT will have ever been paid and none will be due until it is imported somewhere.

As a non EU resident, you get to keep the boat in the EU without importing it for up to 18 months at a time.

Just don't ever think of importing it into the EU. It will have to be certified as compliant to RCD II/2013 which it won't be.
It will cost a bomb to get it to pass. VAT will have to be paid but that is very minor compared to the cost and complexity of getting it RCD II/2013 certified.

If it stays in the UK, it never has to get certified.

 

[Tranona]

Thanks for the clarification.
A trip back and forth over the channel every 18 months sounds fine.

How are "older" VAT exempt boats effected? or is there no such thing in this situation?

eg.
1985 Boat purchased new in Netherlands.
1996 Boat imported to UK
2024 Boat sails to/around EU, - now and then (<18months) crosses back and forth to UK

Would any VAT have ever been paid...?

There is a distinction between VAT payment and VAT "status". The latter is what determines where and how it can move and be bought or sold. For most boats its location on 31/12/2020 will determine its status - in the EU it will have EU status and in the UK UK status. EU status means it can circulate freely around the EU and can visit the UK if it owned by an non EU resident on a temporary basis. If it is purchased by a UK resident and imported into the UK VAT is payable on arrival (and certification to be used in the UK). If it has UK status it can visit the EU on a temporary basis but if an EU resident buys it for use in the EU s/he has to import it. All this is independent of where VAT was paid (or not as in the case of those originally considered pre 2021 EU VAT paid) originally and where the boat is registered. Existing status is also independent of citizenship and residence of the owner. Residence only becomes important if the boat moves from one jurisdiction to another,

So in your example if the boat was in the UK on 31/12/2020 it is UK VAT paid and can go in and out of the EU on a temporary basis and return to the UK provided ownership does not change while it is out of the UK.

 

[AngusMcDoon]

EU status means it can circulate freely around the EU and can visit the UK if it owned by an non EU resident on a temporary basis.

Should be 'UK'.

 

[Tranona]

You are right of course.

 

[st599]

Also worth noting that even though the boat can enter for 18 months, a non-EU resident can't and any visa which lets you stay that long will give you residency and cause a VAT event (plus RCDII)