BREXIT

[Foxboater]

Hi, Do we think with BREXIT there will be any tax changes with UK registered boats on the Mediterranean? i.e having to pay extra tax to keep the boat on the med or??
As I'm wondering if I should wait before I lift the boat from UK-Spain or maybe I'm overthinking it and all will remain the same? Thank you

 

[Hurricane]

There seems to be a few threads on Brexit at the moment.
I've just answered your same question on the other thread so I've copied it here as well.

IMO, there are two things to consider and in your case the second point leads to a third.
I stand to be corrected on any these points

Point 1 - The big one - You
Freedom of travel is currently under discussion so this may change.
At the moment, I think you can travel back and forth as much as you like.
If there is no deal, the default situation is that you can only visit for 90 days in any 180 days.
This applies to non European citizens now.
This may all change but, personally, I believe that the Spanish will turn a "blind eye" to people like us who are, really just tourists.
i.e - not living in their country and spending our money there.

Point 2 - The boat
A boat is considered "a good" and as such any "good" inside Europe has to have either been imported into Europe (and had import taxes paid) or been supplied/built within Europe.
If supplied within Europe to a private individual, then VAT will have been paid but this is not a VAT issue.
So, after Brexit, the UK is no longer inside Europe but boats already in Europe will (I believe) keep their European "goods" status.
So the boat can stay as long as it likes - unless it moves away from EU waters for more than 3 years - then it would need to be re-imported (as has always been the case).
This is completely different to you an individual visiting the boat - see Point 1
As I understand it, if you take your boat from a non European country to a European country, it will need to be "imported" into Europe and have import taxes paid.
Even if it is VAT paid - I believe that VAT isn't the issue here - I believe that it is the action of importing that is the point.
There is, however a period (of 18 months - I think - TA rules) that allows any good to stay in Europe before triggering an import.
This is to cover people touring with caravans and cars etc - their goods are not subject to import for that period.
A lot of us with boats in Europe have completed a T2L certificate that proves that our boats are already European goods.
I don't think it matters that we, as owners, are in the EU or not - our boats are EU goods.
Our T2L certificates were validated by HMRC whilst HMRC was/is still entitled to do so as a member state.
I believe that this T2l certificate is part of the paperwork that you would get if you imported your boat (good) into the EU.
So, IMO, our boats that are already in Europe wont be affected by Brexit.

Point 3 - Your case - leads on from Point 2
You are considering moving your boat after Brexit so there are a few questions that we don't know the answers to.
Firstly, for this "goods" (Point 2) issue - has Brexit actually happened yet - I suspect not - we are still trading as before so IMO, all import rules are as before.
In other words is the "cut off" date was not last Jan but will be the 31st Dec 2020
I suspect that if you move your boat to an EU country now, there will be no issue.
It would be interesting to see if HMRC will still stamp (validate) a T2L
Secondly, will there be a deal? - who knows.
Thirdly, there is always the TA (18 month) rule.
Where you can take your boat into Europe after a no deal Brexit and have 18 months to think about what to do
And, finally, I don't think that countries like Spain can afford to follow these importation rules so, I think a lot of this will be ignored (or worked around)

So, IMO, what should you do.
I think you should make sure that your boat is in Europe on the 31st December 2020.
Even if it is just in a French port the other side of the channel on that date.
A marina berthing invoice would prove that point.
Better still take the boat out to Spain now
If you use a road transport (Coast 2 Coast for example) you will have an invoice confirming that the boat was transported to the EU before 31st Dec
Of course all this changes if a deal is struck but it might be prudent to move the boat now whilst there is no implication of import.

Hope that helps but, as I say - it is only as I see it.
It would be interesting to hear if other people agree with my thoughts.

 

[Portofino]

Hi, Do we think with BREXIT there will be any tax changes with UK registered boats on the Mediterranean? i.e having to pay extra tax to keep the boat on the med or??
As I'm wondering if I should wait before I lift the boat from UK-Spain or maybe I'm overthinking it and all will remain the same? Thank you

Not tax per se , but as a 3P state U.K. reg boats may be required if berthed permanently in the EU to adhere to local regulations as the natives do .Some of this adherence behaviour might end up costing some ( currently hiding under red ensign rules ) a bit more .

 

[Hooligan]

There seems to be a few threads on Brexit at the moment.
I've just answered your same question on the other thread so I've copied it here as well.

IMO, there are two things to consider and in your case the second point leads to a third.
I stand to be corrected on any these points

Point 1 - The big one - You
Freedom of travel is currently under discussion so this may change.
At the moment, I think you can travel back and forth as much as you like.
If there is no deal, the default situation is that you can only visit for 90 days in any 180 days.
This applies to non European citizens now.
This may all change but, personally, I believe that the Spanish will turn a "blind eye" to people like us who are, really just tourists.
i.e - not living in their country and spending our money there.

Point 2 - The boat
A boat is considered "a good" and as such any "good" inside Europe has to have either been imported into Europe (and had import taxes paid) or been supplied/built within Europe.
If supplied within Europe to a private individual, then VAT will have been paid but this is not a VAT issue.
So, after Brexit, the UK is no longer inside Europe but boats already in Europe will (I believe) keep their European "goods" status.
So the boat can stay as long as it likes - unless it moves away from EU waters for more than 3 years - then it would need to be re-imported (as has always been the case).
This is completely different to you an individual visiting the boat - see Point 1
As I understand it, if you take your boat from a non European country to a European country, it will need to be "imported" into Europe and have import taxes paid.
Even if it is VAT paid - I believe that VAT isn't the issue here - I believe that it is the action of importing that is the point.
There is, however a period (of 18 months - I think - TA rules) that allows any good to stay in Europe before triggering an import.
This is to cover people touring with caravans and cars etc - their goods are not subject to import for that period.
A lot of us with boats in Europe have completed a T2L certificate that proves that our boats are already European goods.
I don't think it matters that we, as owners, are in the EU or not - our boats are EU goods.
Our T2L certificates were validated by HMRC whilst HMRC was/is still entitled to do so as a member state.
I believe that this T2l certificate is part of the paperwork that you would get if you imported your boat (good) into the EU.
So, IMO, our boats that are already in Europe wont be affected by Brexit.

Point 3 - Your case - leads on from Point 2
You are considering moving your boat after Brexit so there are a few questions that we don't know the answers to.
Firstly, for this "goods" (Point 2) issue - has Brexit actually happened yet - I suspect not - we are still trading as before so IMO, all import rules are as before.
In other words is the "cut off" date was not last Jan but will be the 31st Dec 2020
I suspect that if you move your boat to an EU country now, there will be no issue.
It would be interesting to see if HMRC will still stamp (validate) a T2L
Secondly, will there be a deal? - who knows.
Thirdly, there is always the TA (18 month) rule.
Where you can take your boat into Europe after a no deal Brexit and have 18 months to think about what to do
And, finally, I don't think that countries like Spain can afford to follow these importation rules so, I think a lot of this will be ignored (or worked around)

So, IMO, what should you do.
I think you should make sure that your boat is in Europe on the 31st December 2020.
Even if it is just in a French port the other side of the channel on that date.
A marina berthing invoice would prove that point.
Better still take the boat out to Spain now
If you use a road transport (Coast 2 Coast for example) you will have an invoice confirming that the boat was transported to the EU before 31st Dec
Of course all this changes if a deal is struck but it might be prudent to move the boat now whilst there is no implication of import.

Hope that helps but, as I say - it is only as I see it.
It would be interesting to hear if other people agree with my thoughts.

Totally agree with all the above. Anyone thinking of boating in the med permanently or at least for next few years should absolutely have their boat there by Dec 2020 and probably before ie not on the last day. I would not rely on the politicians on this one.