EU VAT status as of 31/12

[trialframe]

I'm not sure about the validity of this, but is anyone with a UK based boat thinking of taking their boat to an EU county in the next few days to preserve EU VAT status.
Would also this apply if the boat was just out of UK territorial waters at midnight on 31/12?
Doing this could potentially save the buyer paying EU VAT if the vessel was sold to an EU county subsequently & make it much more likely to sell outside the UK ?

 

[ontheplane]

But surely make it liable for UK vat when they bring it back after their night away....?

 

[CLB]

I don't think you are going to get into any EU country at this time, at least, not officially.

 

[st599]

But surely make it liable for UK vat when they bring it back after their night away....?

No, it would have Returned Goods Relief applied if brought back before the end of 2021. But I doubt arriving in France, they'd welcome you wandering up to the Customs office at the moment.

 

[ontheplane]

No, it would have Returned Goods Relief applied if brought back before the end of 2021. But I doubt arriving in France, they'd welcome you wandering up to the Customs office at the moment.

But you wouldnt get the relief if you claimed is was based in the EU at the crucial moment - I.e. I think you have to make it either UK VAT paid or EU but you can't have both

 

[DavidJ]

But you wouldnt get the relief if you claimed is was based in the EU at the crucial moment - I.e. I think you have to make it either UK VAT paid or EU but you can't have both

Although the crucial moment is the end of 2020 there is an agreed concession of a year to return your boat to the UK because of the COVID restrictions. After that your i.e is correct
Im not aware that the concession goes both ways so I think on Jan 1st 2021 you will have to pay EU VAT if you intend to export your boat permanently to the EU even if your boat has UK VAT paid.
Many of us in the Med are getting our marinas to write us an official notification of our boats location at year end.

 

[Hurricane]

so I think on Jan 1st 2021 you will have to pay EU VAT if you intend to export your boat permanently to the EU even if your boat has UK VAT paid.

Or use the TA rules where as a non-EU resident, you can keep a boat in EU waters for 18 months - after which you will need to leave EU waters and return to start another 18 months TA.

 

[trialframe]

So if you've got a UK based boat (with UK vat paid on it), any buyer from the EU would now have to pay vat on it in their own country?
Can't see many future sales made outside the UK from now on then.

 

[syvictoria]

So if you've got a UK based boat (with UK vat paid on it), any buyer from the EU would now have to pay vat on it in their own country?
Can't see many future sales made outside the UK from now on then.

Yes - that's pretty much the long and short of it.

 

[RJJ]

So if you've got a UK based boat (with UK vat paid on it), any buyer from the EU would now have to pay vat on it in their own country?
Can't see many future sales made outside the UK from now on then.

The flip side is that UK buyers will be less likely to go boat hunting in France, Germany or Holland. Yes the market has shrunk, but on both buy and sell side.

It's always one that could be resolved by further mutual agreement.

 

[Hurricane]

So if you've got a UK based boat (with UK vat paid on it), any buyer from the EU would now have to pay vat on it in their own country?
Can't see many future sales made outside the UK from now on then.

Shouldn't affect new boats though.
Any boat for "export" would be free of UK VAT.
Then, if you are a UK resident, you could use the 18 month TA rules (now that a UK resident isn't an EU resident).
This could mean that you wouldn't VAT at all !!!

 

[DavidJ]

But but but
what happens after 18 months

 

[superheat6k]

Just screenshotted Marine Traffic of my boat on its home mooring.

 

[Hurricane]

Just screenshotted Marine Traffic of my boat on its home mooring.

But that would be the case if it wasn't there and you switched off the AIS

 

[Hurricane]

But but but
what happens after 18 months

Just before the end of the 18 months, you go out of EU waters and back again.
I believe that there is a presidence for this.

 

[DavidJ]

So if you bought a new boat at say £500k and take it to the EU under TA rules. Have a lovely 18 month holiday, put some decent hours on the clock so it’s now worth £400k. Take it back to the UK (where I want to keep it) and pay VAT on £400k
Thats £20k saved which could contribute to your 18 month holiday quite nicely.
Have I missed something? (This is a retired person talking of course)

 

[st599]

So if you bought a new boat at say £500k and take it to the EU under TA rules. Have a lovely 18 month holiday, put some decent hours on the clock so it’s now worth £400k. Take it back to the UK (where I want to keep it) and pay VAT on £400k
Thats £20k saved which could contribute to your 18 month holiday quite nicely.
Have I missed something? (This is a retired person talking of course)

Yes you have, the boat can stay in the EU for 18 months, but you can't.

 

[DavidJ]

Yes you have, the boat can stay in the EU for 18 months, but you can't.

Oh yes I forgot about that bit.... 90 days in 180

 

[Momac]

I think you can stay longer , up to a year , if you obtain a long stay visa.

 

[stelican]

Yes you have, the boat can stay in the EU for 18 months, but you can't.

And you will also have £20k transport costs