Dropping pound . Is it time to quit the Euro Med

Trustworthy bankers

If the banks don't trust each other - and they are the "experts" on bank trustworthiness - why do you trust them with your cash?

My mattress is getting lumpy.
 
Re: Trustworthy bankers

[ QUOTE ]
If the banks don't trust each other - and they are the "experts" on bank trustworthiness - why do you trust them with your cash?

My mattress is getting lumpy.

[/ QUOTE ]

Not as lumpy as mine /forums/images/graemlins/smile.gif But remember that you do have your Government guarantee of ?£50k or did that change? There is no way that guarantee will fail as they will just print the money and give it to you. It won't be worth very much in value if that happens but then again, neither will those lumps in your mattress unless they were made from precious metal.
 
Re: ThanksLemain

The bendytoy results, goes some way to confirm a rumour i heard recently that a major bene seller didnt sell one at the Sept boat show.
Stu
 
Cruising plans

We had the next 12 months all planned out until the recent drop in the pound.
The boat is now in Tenerife after collecting her from Cape Town. Our plans were originally to go to Madeira and pay the dreaded VAT (14%) and then we were off into the Med. We bought the boat in USD and unless we bring her back to the UK we will be paying VAT in Euro's which will be a double wammy!!
At the moment with VAT in the UK at 15% it looks like bringing her back here is the only option but it's a lot of mileage and then we end up with the normal UK crap weather for a season!!
Any other options would be greatly appreciated.
Thanks and a Happy Christmas to all.
Adaero
 
Re: Cruising plans

I don't know about the rules and the law, but if you register the yacht Part 1 in the UK -- e.g. Port of Registry London, can you not then pay UK VAT without physically importing the vessel into the UK?
 
Re: Cruising plans

[ QUOTE ]
I don't know about the rules and the law, but if you register the yacht Part 1 in the UK -- e.g. Port of Registry London, can you not then pay UK VAT without physically importing the vessel into the UK?

[/ QUOTE ]

You would have thought so but as soon as I heard about the reduction in UK VAT I spoke with Customs & Excise. They said that they didn't want to know about it unless the boat was coming into UK waters. It seems strange they would turn down quite a large payment and instead give it to some other EU member state?
 
Re: Cruising plans

[ QUOTE ]

You would have thought so but as soon as I heard about the reduction in UK VAT I spoke with Customs & Excise. They said that they didn't want to know about it unless the boat was coming into UK waters.

[/ QUOTE ]Sorry to be pedantic but it isn't down to what they WANT to know about it's down to what the law and the rules actually say. If your vessel is Part 1 registered in, say, London Port, can you oblige them to accept VAT on the vessel? It might also hinge on the owner's location?
 
Re: Cruising plans

Hi, Now I am not absolutely sure on this (marine) but it might be worth checking this out.
I was involved in light aircraft for a lot of years until fairly recently. There was the point where Custom officials from the Port Of Entry, lets say a French Airport as an example would and did confiscate US registered aircraft owned by EU Citizens until VAT payment or proof the tax had been paid. This was seen as a revenue generator but I cannot say it is EU law. Until this has been checked I would tread with caution.
Maybe someone else on the Forum could clarify this as I do not have the knowledge to quote EU tax law. All I know is that it often happened. As long as the tax was paid in EU regardless of which State you where a National of, this was deemed to be legal. /forums/images/graemlins/wink.gif
 
Re: Cruising plans

[ QUOTE ]
I don't know about the rules and the law, but if you register the yacht Part 1 in the UK -- e.g. Port of Registry London, can you not then pay UK VAT without physically importing the vessel into the UK?

[/ QUOTE ]My guess is that they require sight of the boat to ascertain fair value for setting VAT. I know that they usually accept the receipt price, but without sight a scam with a doctored receipt would be all too easy.
 
Re: Cruising plans

When we bought a yacht in Spain that VAT had not been paid on they did not need to see the S/Y or invoice. The S/Y was Spanish owned and on a "6" registration number (commercial). This was valued by an equation related to the original purchase price and age, we were then told how much VAT we had to pay. Once that was paid we then took it off the Spanish Register and put it on to the British SSR, this also was just a paper exercise.
 
Re: Cruising plans

[ QUOTE ]
......
The boat is now in Tenerife after collecting her from Cape Town. .....

[/ QUOTE ]

AFSIAW Tenerife is in the EU and you are NOW due to pay VAT in Euros to Spain. As I underswtand it VAT is payable in the EU in the First port of entry and at the rate due in that country (Spain!). you can be sure that if the authorities work this out they will ask you to pay.

".......The islands are outside the European Union customs territory and VAT area, though politically within the EU. Instead of VAT there is a local Sales Tax (IGIC) which has a general rate of 5%, an increased tax rate of 12%, a reduced tax rate of 2% and a zero tax rate for certain basic need products and services (eg telecommunications).

The ISO 3166-1 α-2 code IC is reserved for representing them in customs affairs. Goods subject to Spanish customs and excise duties and Value Added Tax (VAT), are significantly cheaper in the Canaries but VAT is still payable."

I was advised that VAT would be charged on a boat if the customs found that none had been paid.


/forums/images/graemlins/frown.gif
 
Re: Cruising plans

[/ QUOTE ]Sorry to be pedantic but it isn't down to what they WANT to know about it's down to what the law and the rules actually say. If your vessel is Part 1 registered in, say, London Port, can you oblige them to accept VAT on the vessel? It might also hinge on the owner's location?

[/ QUOTE ]

Firstly, I apologise to everyone for the thread drift. My original post was just highlighting another problem with the rising Euro and its knock on effects.

Just to make sure I have spoken again with the VAT office and they have given me the same answer :-
Although the boat is UK Pt1 registered unless I actually import the vessel into the UK you cannot pay any form of duty on something that isn't actually here. I can only pay the duty at an EU member state where I physically land the vessel.
This brings me back to my original question, do I go to Madeira and pay VAT at 14% in Euro's or I sail from Tenerife back to the UK and pay it at 15% in GBP?
Thanks for your help
 
Re: Cruising plans

I agree that he would be best off getting knowledgeable advice but professionals, in this business, are a horribly mixed lot (many of them are dangerously ignorant). I think -- but not certain -- that you have 30 days grace. So if you land in, say, the Canaries on passage to, say, Portugal > Ireland > UK then provided you don't stay longer than 30 days in each country you are OK. But I am not sure about this....it needs checking.
 
Re: Cruising plans

With the parity of the €/£ (trading at 1.056 at this moment) I think it would be wiser to take the much shorter leg to Madeira and pay the VAT there. If you really want to stay in warmer climes no point doing the UK, nothing much here to look forward to at the mo.
You can then do the British SSR by post.
 
Re: Cruising plans

Am I missing something here? Presumably the vat payable will be based on the cost price converted into whichever currency is used. If you only need to pay at 14% that will be cheaper in sterling anyway as long as you don't lose too much doing the transfer through a bank?
 
Re: Cruising plans

[ QUOTE ]
Am I missing something here? Presumably the vat payable will be based on the cost price converted into whichever currency is used. If you only need to pay at 14% that will be cheaper in sterling anyway as long as you don't lose too much doing the transfer through a bank?

[/ QUOTE ]
We bought the boat in USD ($2.03 to the pound at the time) which is now $1.49. Euro was €1.35 to €1.40 now €1.05. So all the calculations have been done at the original rates when I bought the boat. Work it out, there's a bloody big difference!
 
Re: Cruising plans

[ QUOTE ]

We bought the boat in USD ($2.03 to the pound at the time) which is now $1.49. Euro was €1.35 to €1.40 now €1.05. So all the calculations have been done at the original rates when I bought the boat. Work it out, there's a bloody big difference!

[/ QUOTE ]

I thought that VAT was payable on the value at time of importation? Suppose you'd chartered it out in the Caribbean for a few years, almost trashing it, and then imported it, you wouldn't expect to pay VAT on the original purchase price?
 
Re: Cruising plans

[ QUOTE ]
I thought that VAT was payable on the value at time of importation? Suppose you'd chartered it out in the Caribbean for a few years, almost trashing it, and then imported it, you wouldn't expect to pay VAT on the original purchase price?

[/ QUOTE ]

The boat will only be 6 months old when we arrive in Madeira so I hope what you say is true and they don't try and use the original invoice as a guide!! I have been trying to find the Madeira equivalent of our VAT office online so I can maybe speak to them prior to arrival but not having much success at the moment.
Thanks again for all your help
 
Re: Cruising plans

Can one avoid paying VAT on yachts? The establishment of the Single Market on 1st January 1993 abolished the VAT frontiers between European Union countries. Rates of VAT vary from one country to another, and so do the rules on valuation.

Greece, Portugal and even the Netherlands offer the most sympathetic valuation procedures. But it is always open to another country to challenge the valuation and demand further VAT. The rules are becoming more uniform and better understood. Yachts chartered to sail into EU ports attract VAT and the charter will require to be registered for VAT. This may be done in the United Kingdom or the Isle of Man. Luxembourg and Madeira present themselves as locations for chartering companies.

The VAT rules affecting aircraft are similar to those affecting yachts.

You could always try and contact a Marina on Madeira and get number for a local VAT office. Hope it all pans out for you, if you are like me I have a natural disgust for paying tax. /forums/images/graemlins/wink.gif
 
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