Buying a UK boat in EU

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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!
 
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).
Click to expand...

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

Source: Acheter, vendre, enregistrer des navires de plaisance pour naviguer en mer
 
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.
 
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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.
 
Baggywrinkle said:
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.
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We’re British and just bought a boat in Corfu, from what I can see it’s been there since long before brexit and vat has never been paid. The boat is UK registered but we have no intention of ever sailing it to the UK. Possibly relocate to the Caribbean in a couple of years.

We head out to the boat in a few weeks and I’m wondering how the Temporary admission works? Is there a document we require for this or just evidence it’s been out of the EU. I’m wondering could we sail to Montenegro for a couple of days to start the 18 month clock?

Thanks in advance for any advice ☺️
 
Delphinus said:
We’re British and just bought a boat in Corfu, from what I can see it’s been there since long before brexit and vat has never been paid. The boat is UK registered but we have no intention of ever sailing it to the UK. Possibly relocate to the Caribbean in a couple of years.

We head out to the boat in a few weeks and I’m wondering how the Temporary admission works? Is there a document we require for this or just evidence it’s been out of the EU. I’m wondering could we sail to Montenegro for a couple of days to start the 18 month clock?

Thanks in advance for any advice ☺️
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If the boat has, as you say, been in Corfu since "long before Brexit" it is imo very unlikely " VAT has never been paid" (unless it is a very old boat and is deemed VAT paid). You really need to find out the history of the boat before you put yourself to the bother of going down the TA route.
 
Based on this scant information the boat is considered EU VAT paid as it was in Greece on 31/12/2020 (Brexit day). Hopefully Greek authorities have accepted this and will issue a Transit Log and you will have to pay cruising tax so that you can move freely around Greece and to other parts of the EU. The fact that you are British does not affect the status of the boat and you can register it on the SSR. It would have been wise to investigate all this before you committed to buying the boat as although this is the "official" position Greece was slow in adjusting to post Brexit in relation to the status of British boats. Perhaps the broker (if you bought this way) will help clarify. It is also worth joining the Cruising Association as they have done a lot of work helping people with British boats deal with Greek authorities.
 
Irish Rover said:
If the boat has, as you say, been in Corfu since "long before Brexit" it is imo very unlikely " VAT has never been paid" (unless it is a very old boat and is deemed VAT paid). You really need to find out the history of the boat before you put yourself to the bother of going down the TA route.
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It hasn’t been vat paid. We have comprehensive records and every Bill of Sale for each person who has purchased the boat.
Our friend who we bought it off, and has owned it since before brexit, was under the impression that it is Tax Exempt. We doubt this very much, he hardly ever sailed the boat so probably avoided authorities?
The original Bill of Sale from 2001 is stamped on the back stating it is exempt (see photo attached).
I’d rather pay, if necessary, the appropriate vat as I don’t fancy any issues going forward.
 

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How old is the boat and where was it originally purchased? Is it an ex charter boat? are there any old transit logs or DEKPA cards with the boat? It is difficult to avoid authorities in Corfu so your friend will almost have had some dealings with Port Police.

TBH there is no way of paying VAT at this stage. You bought it from a private individual and such transactions do not attract VAT. VAT is only payable when the boat is sold to the first private owner by the builder/dealer or a VAT registered company such as a charter operator.

Is that Bill of Sale from when it was new? The reasons I am asking is that if it is an ex charter boat prior to 2002/3 many were sold at the end of their charter life, free of VAT. This was against EU rules and changed in in 2003 to comply.

Brexit is probably not relevant as the boat has been in Greece and changed hands many times without difficulties. Brexit is only really an issue for boats that originated in the UK (and probably paid VAT there) and taken to the EU. Does not seem to be the case here.

Sorry if this sounds a bit disjointed, but I am sort of second guessing a bit. Really need to see the whole document trail to be more accurate.
 
Delphinus said:
It hasn’t been vat paid. We have comprehensive records and every Bill of Sale for each person who has purchased the boat.
Our friend who we bought it off, and has owned it since before brexit, was under the impression that it is Tax Exempt. We doubt this very much, he hardly ever sailed the boat so probably avoided authorities?
The original Bill of Sale from 2001 is stamped on the back stating it is exempt (see photo attached).
I’d rather pay, if necessary, the appropriate vat as I don’t fancy any issues going forward.
Click to expand...
You refer to the attachment as the original bill of sale. So was the boat new in 2001? What year was she built?
 
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