Bringing boat from Europe to UK for work to be done - is it still ok?

[All_at_Sea]

I have a sailing boat in Holland that needs to come back to the UK for work over the winter. Can l still do this as l thought there was an exemption for UK nationals with boats abroad, or has this changed?

Boat was in the EU on 31st/12/2020 & 21 & 22
Boat 1989 EU VAT paid
Owners UK citizens and living in UK

 

[sailaboutvic]

As far as I know if a uk citizen who lived in the UK ,
bring a boat that’s not UK VAT paid he has to paid the vat as soon as he arrives in the UK .

if am wrong I sure someone will correct me.
why not get the repairs done in the Netherlands,I underst they are very reasonable,

 

[Tranona]

There is no mechanism that allows a UK resident to bring a boat into the UK without paying VAT and importing it - and AFAIK never has been.

However enterprises such as refit yards can carry out work on non VAT paid boats from outside the UK without charging VAT. This is though aimed at high end refits and has to be negotiated with HMRC.

Can't imagine any type of work on a boat that cannot be done in Holland.

 

[lustyd]

Yes there’s an exception the boat gets put into bond effectively at the yard and can’t be used. The yard would need to know this so probably use someone like Berthon

 

[All_at_Sea]

Yes there’s an exception the boat gets put into bond effectively at the yard and can’t be used. The yard would need to know this so probably use someone like Berthon

I have put this idea to the legal team at the RYA, l will keep you posted. Thanks

 

[lustyd]

I have put this idea to the legal team at the RYA, l will keep you posted. Thanks

Apply to delay or pay less duty on goods you import to process or repair

 

[Tranona]

That is the mechanism used by yards who do this sort of work, but not available for individuals.

So, find a yard to do the work and is prepared to apply for HMRC authorisation.

 

[Baggywrinkle]

Do bear in mind that anything that is considered as "improvement" and not repair will cause the boat to forfeit it's EU VAT paid status.

To retain the boats EU VAT paid status if it leaves the EU you will need to apply for returning goods relief on its return. There are some conditons attached ....

The goods must:

• be re-imported in an unaltered state, apart from any work that may have been carried out to maintain the goods in working order
• not have been upgraded to increase their value
• be re-imported within 3 years of the date of export

EU business: EU Returned Goods Relief

 

[lustyd]

That is the mechanism used by yards who do this sort of work, but not available for individuals.

So, find a yard to do the work and is prepared to apply for HMRC authorisation.

Yes, as I said above you'd have to find a yard able to deal with it and place the boat under bond. It is possible for a UK resident to bring their boat in for work without paying tax though, which was the original question.

Do bear in mind that anything that is considered as "improvement" and not repair will cause the boat to forfeit it's EU VAT paid status.

No, it requires that additional tax be paid on the improvements, a far less dramatic state of affairs! The yard will provide suitable paperwork to enable this transaction to be carried out on return to the EU.

 

[Poignard]

My boat, kept in Brittany for the last 9 years and registered as having paid EU CAT, needs a new sprayhood to replace the existing one.

Supposing (because French cover makers are very expensive) I were to bring her back to the UK for a few weeks while I had one made to measure, would I be liable to VAT? She would not be going into a commercial yard but into a club marina.

What formalities would I have to follow?

 

[Baggywrinkle]

No, it requires that additional tax be paid on the improvements, a far less dramatic state of affairs! The yard will provide suitable paperwork to enable this transaction to be carried out on return to the EU.

Why does the text of the advice explicitly state that a boat that has been improved to increase its value doesn't qualify for returned goods relief if this is not the case?

 

[Graham376]

I have a sailing boat in Holland that needs to come back to the UK for work over the winter. Can l still do this as l thought there was an exemption for UK nationals with boats abroad, or has this changed?

Boat was in the EU on 31st/12/2020 & 21 & 22
Boat 1989 EU VAT paid
Owners UK citizens and living in UK

If you are the owner who exported the boat from the UK, then you can bring it back and claim RGR.

 

[lustyd]

Why does the text of the advice explicitly state that a boat that has been improved to increase its value doesn't qualify for returned goods relief if this is not the case?

Because the value of the boat has changed. That doesn't nullify the previously paid tax it just means that more tax needs to be paid.

 

[Baggywrinkle]

Because the value of the boat has changed. That doesn't nullify the previously paid tax it just means that more tax needs to be paid.

How do they assess the increase in value?

 

[lustyd]

How do they assess the increase in value?

In this instance, using the documentation provided by the yard.

 

[sailaboutvic]

Lot said but I guess if it’s not a super yacht your probably going to have a problem to find a yard to go through a load of trouble for you to have a thousand pound of work done on it , but hey you can only try.

 

[lustyd]

I think for yards that can do it it’s probably no trouble. They won’t be cheap yards but I doubt they mind how big a job it is.
I do agree though, since you’re not doing it yourself anyway may as well get it done where the boat is.

 

[Tranona]

My boat, kept in Brittany for the last 9 years and registered as having paid EU CAT, needs a new sprayhood to replace the existing one.

Supposing (because French cover makers are very expensive) I were to bring her back to the UK for a few weeks while I had one made to measure, would I be liable to VAT? She would not be going into a commercial yard but into a club marina.

What formalities would I have to follow?

You can't avoid paying VAT on your sprayhood in the UK as an individual. Read the rules in post#6. only a VAT registered business can apply for authorisation and not worth it for low value items. As suggested the scheme is really only applicable to high value refits, usually of non VAT paid boats. The scheme is not specific to boats but is for businesses that part process products in the UK using imported items and then exporting the processed goods. clearly lots of record keeping needed to show that the business is not unlawfully avoiding collecting and paying VAT.

 

[Poignard]

You can't avoid paying VAT on your sprayhood in the UK as an individual. Read the rules in post#6. only a VAT registered business can apply for authorisation and not worth it for low value items. As suggested the scheme is really only applicable to high value refits, usually of non VAT paid boats. The scheme is not specific to boats but is for businesses that part process products in the UK using imported items and then exporting the processed goods. clearly lots of record keeping needed to show that the business is not unlawfully avoiding collecting and paying VAT.

No, I didn't explain very clearly.

It's not VAT on the sprayhood I am bothered about but whether I would have to pay VAT on the boat, even though I would take her back to France as soon as the sprayhood was made.

 

[sailaboutvic]

No, I didn't explain very clearly.

It's not VAT on the sprayhood I am bothered about but whether I would have to pay VAT on the boat, even though I would take her back to France as soon as the sprayhood was made.

There are company who have patterns for most boats I’m sure you got in touch with them they could make you one without seeing the boat .
then it’s a small matter of drilling a few hole and fixing it in place.
let be honesty there be boat arriving from all over the place making out there here to have work done,
then disappear within the hundreds of thousands of boat in the UK .
I know it’s been said that it wouldn’t be a problem for a yard to sort it out but yards have enough work without sorting a load of paper work for a small amount ,
I guess a super yacht needed 20 k worth of work might temped the odd yard.