Cruising EU with Jersey registered yacht??

[RDW]

Has anyone already been through this scenario?

I am a UK national working overseas. Bought a yacht and registered it in Jersey before putting it into charter in the Caribbean and Turkey to avoid VAT.

How long can I cruise the EU waters with a Jersey registered yacht before I have to leave to avoid VAT?

Any experiences on this most welcome.





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[AndrewB]

If you are not established as resident outside EU, you will have to pay VAT immediately you bring it into the EU. If it is not CE marked, it may also be liable for RCD approval.

If you are formally non-EU resident, then as I understand it, you have two possibilities.

If you claim to be returning to the EU as a resident, you have owned and used the yacht for at least 6 months outside the EU, and have paid all regular taxes on it in the country of purchase: then you can simply import the yacht free of VAT by making a normal customs declaration. Again, the yacht may then be liable for RCD approval.

Alternatively, if you retain your non-residence status you can claim temporary importation relief. However after 6 months you automatically lose your non-resident status and the right to temporary importation relief, so will have to import it or leave. My guess is that with a UK passport you might run into problems with local customs officers in some ports, and it would be advisable to arrange proper documentation from the UK regarding your position.

This is strictly theoretical as I haven't been in your position myself. But UK Customs and <A target="_blank" HREF=http://www.hmce.gov.uk/forms/notices/308.htm>Notice 308 seem to cover your case.