Bringing a boat from Jersey to Northern Ireland- Tax situation?

[Chris5140]

Hi guys

First post and need some advice.

I am on the lookout for a new (to me) boat and have seen one I really like in Jersey. The issue is its "Tax Unpaid".

My understanding is that this means it hasn't been imported into the UK yet and therefore vat would be required if bringing into mainland UK from Jersey?

However, in their genius wisdom the masterminds behind Brexit decided to leave Northern Ireland behind in the EU and for once this may actually work to my advantage..... I hope.

So my question is..... Can I bring the boat back to my home marina in the glory land of Northern Ireland without it being subject to UK import VAT?

Now, I know that I will not be able to sell the boat on to anyone in mainland UK without them having to pay the VAT and "import" it themselves which will limit my later potential buyers BUT I can live with that and I can always sell it to someone in southern Ireland.

Is there anyone out there in boatland who can give me a steer on this one?


Cheers guys

Chris

 

[Tranona]

Jersey is outside the EU so you would still have to pay VAT as the same rules apply. However as you rightly say the VAT situation in NI does not seem clear so perhaps best to get clarification from customs before making any commitment to buy the boat.

 

[Chris5140]

Thanks Tranona.

I understand Jersey is outside the EU, strange then that the boat is an older boat and inside the UK but still no tax pid.

I can only assume its registered in France and has operated in Jersey under a temporary excemption?

 

[Sticky Fingers]

Jersey is not in the UK VAT zone either.

 

[Tranona]

Thanks Tranona.

I understand Jersey is outside the EU, strange then that the boat is an older boat and inside the UK but still no tax pid.

I can only assume its registered in France and has operated in Jersey under a temporary excemption?

No. As Sticky Fingers says Jersey has always been outside the EU and now UK VAT area. It will likely be registered in Jersey (registration has nothing to do with VAT, neither does ownership) so either it was taken new to Jersey (most likely) where there is no VAT or at some point in its life taken from the UK/EU and lost its VAT paid status. Whichever VAT will be payable if you import it plus as the law stands need certification to the latest standards , although it is unclear whether this requirement is actually enforced.

I expect the boat is "cheap", even with adding VAT and the reason is simple - there are limited legal markets outside the channel Islands for such boats

 

[KompetentKrew]

I understand Jersey is outside the EU, strange then that the boat is an older boat and inside the UK but still no tax pid.

I can only assume its registered in France and has operated in Jersey under a temporary excemption?

It would have lost its VAT-paid status, if it had one, when it was exported to Jersey.

As said, the boat doesn't have to be registered in the country it "resides".

I suspect none of this at all is enforced or policed.

 

[Sticky Fingers]

It’s probably not enforced but makes the boat more difficult to sell in the Uk without proof of VAT paid. Northern Ireland to Republic export might be a route but still unclear.

@Chris5140 what approx age and value of boat are we talking about here?

 

[Chris5140]

Thanks for the input guys
It’s a 2005 boat.

 

[st599]

I understand Jersey is outside the EU, strange then that the boat is an older boat and inside the UK but still no tax pid.

Jersey is not part of the UK. It was part of the Duchy of Normandy and is owned by the British crown, but it's never been part of the UK - you've always had to do customs on the way back.

 

[Tranona]

Thanks for the input guys
It’s a 2005 boat.

The boat's papers will give you a guide to its tax status. As I suggested earlier it is more than likely originally sold to Jersey which does not have VAT. If it was originally sold in the EU/UK then it will (or should) have a VAT invoice from the builder or dealer. However that status potentially dies after 3 years outside and definitely if it changes ownership in Jersey or anywhere outside the EU/UK

VAT is a tax on transactions, not on the asset (boat) so you need to look at the nature of the transaction to see if it is a "chargeable event" and importing a boat into the EU is one of those events (subject to some exemptions which would not apply in this situation)

 

[Chris5140]

Ok so I reckon that one is out.

There is another option. As mentioned I live in Northern Ireland, I see a nice boat in Cork, Southern Ireland.

NI is still under EU rules so.... do I have to pay vat on a boat I buy in Southern Ireland?

You think Id know the answer if I live here but even my accountant doesnt know the answer to this one.

Chris

 

[macca499]

Ok so I reckon that one is out.

There is another option. As mentioned I live in Northern Ireland, I see a nice boat in Cork, Southern Ireland.

NI is still under EU rules so.... do I have to pay vat on a boat I buy in Southern Ireland?

You think Id know the answer if I live here but even my accountant doesnt know the answer to this one.

Chris

I looked at this previously and while it’s hard to get a certain answer, to the best of my knowledge/research is that you/we are in the unique position of being able to buy a boat from either the EU or UK but if selling on again would need to sell back in to that market unless the buyer wishes to import eu to uk or vice versa which they probably wont. in the end I opted to travel to the UK to buy as I think boats in ROI are grossly overpriced and also feel the UK will be a bigger and easier market when it comes time to sell