Salty John
Active member
Yes you are, unfortunately.
Buying yacht in USA, anyone know VAT rules
- Thread starter jollysailor17
- Start date
Yes you are, unfortunately.
peterborthwick
New member
ok, finally found and read through the RYA's advice on this. ..very informative - doesn't make me very happy though! arghh!!
http://www.rya.org.uk/SiteCollectio...ents/RCD Documents/1 RCD Compliance Guide.pdf
I'll keep hunting through the details, but i may as well ask here as it seams others have been this route before..
Does anybody know what "temporarilly put into service for reasons of tourism or transit" actually means? (in which case RCD not necessary) ie. how long is temporary and does that period last for the period you spend in the EEA or for each country within it?
Would not having RCD compliance (assuming it is deemed not neccessary) or perhaps only having Cat. D compliance (like the guy who imported the Catermaran) cause problems with insurance?
..off to investigate what it takes to become Ex Pat?...
http://www.rya.org.uk/SiteCollectio...ents/RCD Documents/1 RCD Compliance Guide.pdf
I'll keep hunting through the details, but i may as well ask here as it seams others have been this route before..
Does anybody know what "temporarilly put into service for reasons of tourism or transit" actually means? (in which case RCD not necessary) ie. how long is temporary and does that period last for the period you spend in the EEA or for each country within it?
Would not having RCD compliance (assuming it is deemed not neccessary) or perhaps only having Cat. D compliance (like the guy who imported the Catermaran) cause problems with insurance?
..off to investigate what it takes to become Ex Pat?...
Tranona
Well-known member
The "tourism and transit" bit would cover boats that are used by visitors from outside the EEA/EU whose time is already limited to 18 months - although as with the US this can be extended by leaving and re-entering and applying for new temporay importation.
Normally insurers do not check compliance. However it is quite possible that they would specifically ask for further details on an imported boat, or worse use lack of compliance as a reason for rejecting a claim. You really have to ask your insurer beforehand so you don't get any nasty surprises. Insurers tend not to use Categories as a basis for determining the cover they offer as there is no legal reason why you cannot sail anywhere you want with Cat D. The restrictions tend to be individual to the boat and skipper. In other words they could refuse to insure you if they considered the combination of boat/skipper/usage was too high risk.
You have to ask the question as to why the boats you are looking at are so cheap, and part of the answer is that they do not have a market in the EU (easily). If they did the value would rise rapidly.
Good luck with your searches to find a loophole (particularly finding out about becoming non resident). If there was an "easy" way round the restrictions, others would have exploited it already - and it would have been closed.
TQA
New member
- Joined
- 20 Feb 2005
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- 6,815
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- Carribbean currently Grenada
Does this apply to a boat built in the USA in 1978 and offered on the market at that time?
I though I could apply to the RYA for exemption as an ex pat returning to the UK?
I would not be offering her for sale in the UK just doing an Atlantic circuit starting and finishing in the Caribbean.
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Tranona
Well-known member
It really depends on your personal circumstances. If you are not an EU resident then you can apply for temporary importation which will give you 18 months in the EU without paying VAT or complying with the RCD.
However, if you then try to sell you will need to pay both VAT and comply with the RCD - irrespective of age of boat unless you can show it was in use in the EU in 1998. You may be able to apply for exemption as a returning resident, if indeed you are changing your residence then you will be exempt from VAT, but the position with regard to RCD is unclear and you would need to take advice.
If you are an EU resident then you cannot bring the boat into the EU without complying unless you seek one of the other exemptions, for example if the importation is temporary to have repairs done. Again not really practical and you would need to gain clearance from HMRC in advance.
Bottom line is that VAT and RCD/CE are trade barriers to prevent imports from gaining an unfair advantage over domestic prodducts - a strategy adopted by many countries, particularly the US!
However, if you then try to sell you will need to pay both VAT and comply with the RCD - irrespective of age of boat unless you can show it was in use in the EU in 1998. You may be able to apply for exemption as a returning resident, if indeed you are changing your residence then you will be exempt from VAT, but the position with regard to RCD is unclear and you would need to take advice.
If you are an EU resident then you cannot bring the boat into the EU without complying unless you seek one of the other exemptions, for example if the importation is temporary to have repairs done. Again not really practical and you would need to gain clearance from HMRC in advance.
Bottom line is that VAT and RCD/CE are trade barriers to prevent imports from gaining an unfair advantage over domestic prodducts - a strategy adopted by many countries, particularly the US!
papaver19
Member
Just reviving this long-dead thread after 12 years!
I'm thinking of buying a US-flagged boat (in N Carolina) & using it to cruise the Caribbean and Pacific. I've no intention of ever bringing it back to the UK or EU, so the only points I need to consider are (a) whether I can UK-flag it - this seems clearly do-able on the SSR without the boat being present; (b) whether I can re-sell it in the US once I am done - which didn't seem entirely clear to me on reading the previous posts.
Can anyone provide any certainty on the second point, or whether anything has changed in the last 12 years since this was all discussed here?
Thanks in advance
I'm thinking of buying a US-flagged boat (in N Carolina) & using it to cruise the Caribbean and Pacific. I've no intention of ever bringing it back to the UK or EU, so the only points I need to consider are (a) whether I can UK-flag it - this seems clearly do-able on the SSR without the boat being present; (b) whether I can re-sell it in the US once I am done - which didn't seem entirely clear to me on reading the previous posts.
Can anyone provide any certainty on the second point, or whether anything has changed in the last 12 years since this was all discussed here?
Thanks in advance
Fr J Hackett
Well-known member
I don't see any issue with you reselling in the US particularly through a broker and the UK registration has no effect on this as it's simple and normal to cancel it at the time of sale. Selling in the UK or EU would be both complicated and expensive for either you or the purchaser.
Tranona
Well-known member
You can only register it on the SSR if you meet the UK residency requirements. There are no residency requirements for Part ! but obviously a bit more complicated and expensive as you need to have a survey by an approved measurer.
papaver19
Member
Yes, thanks Tranona - my tax advisor says I'll remain UK resident due to the "sufficient ties" rule, so that should be OK even though I won't be spending >183 days there.
Tranona
Well-known member
That is not the rule for the SSR - living here means more than 186 days to use the SSR. ukshipregister.co.uk/about-us/uk-ship-register-eligibility