Buying Eu vat paid boat in the Canary Isles

[Chris_Robb]

Questionnaire on Real Life Situations.


Yachts may be any one of the following situations. Please answer YES or NO that they will still be able to claim RGR and Waiver. All have been located in the European Union and have not been exported. All reimporting is done by a resident of the UK. Please confirm that the vessel will have Free Circulation in the UK

Situation of yachts and ownership​	Where Vat was paid​	Location now​	YES/NO​
Yacht left UK Shores in 2010. It may return to UK under same ownership any time after 31/12/2020	UK​	Greece​
Yacht left UK shores in 2010. In 2015, it was sold in Greece to another UK citizen/resident, as Vat paid. It may return to UK under same ownership any time after 31/12/2020	UK​	Greece​
Yacht left UK shores in 2010, was sold in March 2019, in France to UK citizen/resident. It may return to UK under new ownership any time after 31/12/2020	UK​	Greece​
Yacht left UK shores in 2010. In 2018, it was sold to another UK citizen/resident as Vat paid. It may return to UK under same ownership any time after 31/12/2020	UK​	Greece​
Yacht Purchased new in France in 2015. It may return to UK under same ownership any time after 31/12/2020	France​	Greece​
Yacht Purchased new in France in May 2018. Now sold to UK resident in May 2020	France​	Portugal​
Yacht Purchased second hand in France in 2012. It may return to UK under new ownership any time after 31/12/2020	France​	Spain​
Yacht Purchased second hand in France in May 2018. It may return to UK under new ownership any time after 31/12/2020	France​	Spain​
Yacht purchased second hand in France in March 2018. It may return to UK under new ownership any time after 31/12/2020	France​	Greece​
Yacht Purchased in UK in May 2019. It may return to UK under the same ownership any time after 31/12/2020	UK​	Greece​
A Yacht belonging to an EU citizen, who is resident and working in the UK – will they be treated as if they were a UK Citizen?	France​	UK​

Sent Monday, I wonder if IO will get a reply. I spoke with Callum Jone of the Times financial pages this morning - he asked about the FT piece. I said that it just about misunderstood every principle of VAT, and I wondered why the persons called herself a VAT Expert! It was truly one opf the worst pieces of editorial I have ever seen!

 

[madmolly]

I am correct in saying this also? After Brexit 31/12/20 a second had EU VAT paid boat in the EU 27 can be put on the UK register, keep its EU VAT status, free range for 18 months (90/180 for UK owner) within the EU, leave the EU VAT area for a minimum of one day and return within 3 years to retain EU VAT status. It will not hold any VAT status in the UK if it was sold to a UK resident after Brexit 30/12/20 even if returned to the UK within 3 years, as the law stands today?

 

[Graham376]

Chris, excellent letter, let's hope they have a rethink and answer your points. Did you copy to RYA, CA, MP etc?

 

[Graham376]

I am correct in saying this also? After Brexit 31/12/20 a second had EU VAT paid boat in the EU 27 can be put on the UK register, keep its EU VAT status, free range for 18 months (90/180 for UK owner) within the EU, leave the EU VAT area for a minimum of one day and return within 3 years to retain EU VAT status. It will not hold any VAT status in the UK if it was sold to a UK resident after Brexit 30/12/20 even if returned to the UK within 3 years, as the law stands today?

An EU VAT paid boat is not limited to 18 months, regardless of nationality or residence of the owner or the flag. The time limit only applies to boats which are not EU VAT paid. A boat purchased anywhere outside the UK after 31/12 will need VAT paying if brought to the UK by a UK resident. Visitors will be time limited.

 

[madmolly]

Very he

An EU VAT paid boat is not limited to 18 months, regardless of nationality or residence of the owner or the flag. The time limit only applies to boats which are not EU VAT paid. A boat purchased anywhere outside the UK after 31/12 will need VAT paying if brought to the UK by a UK resident. Visitors will be time limited.

Very helpful, thank you. Pity HMRC can’t honour the VAT that has already been paid when the UK was a member state..

 

[RupertW]

Provided that you were the owner when you exported the yacht to the canaries you should be ok.

Many things are not known yet and the law had not been sealed let alone delivered...

No I read it as a clear indication that the EU VAT status (held as UK was in the EU) would be retained. In that circumstance the UK VAT status is lost.

 

[nortada]

Many things are not known yet and the law had not been sealed let alone delivered...

So very true.

Chris, Graham, I am only too aware how much hard work you two guys have put in to get a handle on this VAT thing and many other issues currently besetting those of us Brits, with boats in the EU.

The reason for all of this effort is to try and get as many ducks a row as possible to best manage whatever is coming.

This makes absolute sense, but all three of us are only too aware that until any agreement is signed and the terms of that agreement are understood, we are largely fishing in the dark.

Most of us have taken all the steps we can so all that is left is to wait and see what comes and react accordingly.

Unfortunately, all of the current speculation is causing many sleepless nights, to no avail, so I think is is important to keep as sense of proportion, while looking for any possible wriggle room.

 

[Graham376]

Most of us have taken all the steps we can so all that is left is to wait and see what comes and react accordingly.

The step I'm taking at the moment is buying all the bits I need for winter refit, to get them out there before we get screwed for a second dose of VAT on arrival.

 

[davethedog]

Brexit... The gift that keeps on giving LOL

 

[nortada]

Brexit... The gift that keeps on giving LOL

In the context of FF and this thread, please explain what you mean

 

[davethedog]

FF? No idea what that is!

Anyway, what I posted is known as sarcasm (the use of irony to mock or convey contempt) as for some it will prove a real pain, especially those of us who effected by the possible restrictions etc.

 

[nortada]

FF? No idea what that is!

Anyway, what I posted is known as sarcasm (the use of irony to mock or convey contempt) as for some it will prove a real pain, especially those of us who effected by the possible restrictions etc.

Yep, that's is why many have done so much to get their heads around the coming situation to at least ameliorate any impact.

Not too sure what you have contributed to this effort?

 

[RupertW]

Yep, that's is why many have done so much to get their heads around the coming situation to at least ameliorate any impact.

Not too sure what you have contributed to this effort?

He is just a victim of the Brexiteers. Only so much can be done in the face of the changes - and some people (unlike us) want to retain both UK and EU VAT status.

 

[GHA]

Not too sure what you have contributed to this effort?

Made me laugh

Pleasant to have a little lightness in what seem to be increasingly angry and opinionated forums.

Or is that against the forum police rules?

 

[nortada]

Made me laugh

Pleasant to have a little lightness in what seem to be increasingly angry and opinionated forums.

Or is that against the forum police rules?

Agree, always one for a bit of a laugh. ?

Unlike other places, Liveaboard Link is a beacon of friendly help and long may it stay that way.

 

[davethedog]

Yep, that's is why many have done so much to get their heads around the coming situation to at least ameliorate any impact.

Not too sure what you have contributed to this effort?

Thanks for the advice.....

 

[GHA]

Thanks for the advice.....

Not as funny, please try harder

 

[Alicatt]

RYA have updated their info on EU customs and VAT today
Brexit - what happens next? | Current Affairs | Knowledge & Advice | RYA - Royal Yachting Association

 

[Graham376]

RYA have updated their info on EU customs and VAT today
Brexit - what happens next? | Current Affairs | Knowledge & Advice | RYA - Royal Yachting Association

That will be a welcome surprise for those in the Canaries, good news for a change.

EDIT - On further reading, I'm a bit puzzled and maybe missing something - Both paragraphs say Union Status will be retained if in those territories but, then the second goes on to say that taxes must be paid if re-entering EU27. Does this mean they only retain their tax status in those territories?

If, at the end of the transition period, a boat is lying in a territory of an EU country which is part of the Customs Territory of the EU but which is not part of the EU for VAT purposes (e.g. Canary Islands, Guadeloupe, Martinique, French Guiana, Réunion, Åland Islands, Mayotte, Saint-Martin – French part), its Union status (if it was held in that territory) will be retained.

If, at the end of the transition period, a boat is lying in a territory of an EU country which is part of the Customs Territory of the EU but excluded for VAT purposes (e.g. Canary Islands, Guadeloupe, Martinique, French Guiana, Réunion, Åland Islands, Mayotte, Saint-Martin – French part), its Union status (if it was held in those territories) will be kept. When the boat returns to the EU27 from such territories into the EU, however, VAT and other taxes must be paid, and the customs status of Union goods of those boats needs to be proven.

 

[davethedog]

That will be a welcome surprise for those in the Canaries, good news for a change.

Fingers crossed it will help us out at least!