Buying a UK boat in EU

[Seegull]

Another super interesting question about UK/EU boats reg/taxation!

UK registered boat for sale in EU (France), has been there prior to Brexit cut off day.

If it is brought and changed to another country of registration, eg Poland.
Will any EU tax suddenly be due to change of ownership and registration?

Broker suggested it can be registered in France.... but is that possible for none French residents? and is a French boat operating licence needed?

Thanks in advance!

 

[Koeketiene]

1. If the boat's on the EU prior to Brexit cut-off day (have documentary proof of this!) it maintains it EU-VAT paid status even when it changes ownership/registration.

2. Yes, the boat can be registered in France, but...

Pour pouvoir être enregistré, le navire ou la moto nautique doit répondre aux conditions suivantes :

• Appartenir pour moitié au moins
  
  • soit à des ressortissants d'un État membre de l'Union européenne (UE) ou du Royaume Uni et détenteurs d'un titre de séjour spécifique « accord de retrait du Royaume Uni » ou d'un État partie à l'accord sur l'Espace économique européen (EEE) ayant leur résidence principale en France ou y ayant fait élection de domicile,
  • soit à des sociétés dont le siège social est situé en France, dans un autre État membre de l'UE ou dans un État partie à l'EEE.
• Avoir été construit dans l'UE, ou y avoir acquitté les droits et taxes exigibles ;
• Avoir fait l'objet d'un contrôle de sécurité.

En tant qu'acheteur, avant tout achat, il est conseillé de s'informer de la situation hypothécaire du navire auprès du tribunal de Commerce compétent dépendant du service plaisance dans les directions départementales des territoires et de la mer (DDTM/DML).

As a Brit you would have to be a French resident.

Source: Acheter, vendre, enregistrer des navires de plaisance pour naviguer en mer

 

[Baggywrinkle]

VAT has nothing to do with the country of registration, it is to do with the residency status of the owner and the location of the boat - when they are the same jurisdiction and privately owned for leisure purposes, Owner in EU, Boat in EU or Owner in UK, Boat in UK, then VAT must be paid.

Because the boat was in France on B-Day then if it was VAT paid it retains the status of EU goods (subject to proof of being in the EU on B-Day), and remains VAT paid in the EU and free to circulate in the EU - regardless of registration country or the new owners residency.

If a U.K. resident wants to buy the boat in France and bring it back to the U.K. then there will be import duty and VAT to pay in the U.K. - this is because the boat changed ownership outside the U.K.

If a U.K. resident wants to use the boat in the U.K. and retain it's VAT paid status, then the current owner needs to repatriate the boat using returning goods relief, and then sell it as VAT paid in the U.K. It will lose its EU VAT paid status.

If it was not VAT paid and was in France on B-Day then it makes no difference, it remains VAT unpaid both in the EU and UK. But - a U.K. resident could buy it VAT free and go through an export followed by a re-entry into France under Temporary Admission as a non-EU resident (the process takes one day) - the U.K. resident owner will not be charged VAT but must then do a check out / check in every 18 months to reset the clock and avoid VAT.

Country of registration as mentioned by @Koeketiene depends on the rules implemented by each individual country, usually requiring residency or a connection to the country of registration, although countries like Poland don't stipulate this.

 

[Tranona]

Registration is irrelevant to the sale other than the owner will have to remove it from the UK register or the registration can be transferred to the new owner if that owner is eligible. There is no tax on the sale of used boats in the EU. It is a boat with EU VAT status. If the registration is on Part 1 then it can be transferred, If it is on part 3 (SSR) and the buyer is UK resident then the new owner can register it himself on Part 3. There are no restrictions on use in France for UK residents, but UK citizens who are French resident will have to pay local annual tax.