Gib registration

[25931]

I think that someone will know.
Is it still the case that anyone can own a boat through a Gib. co. ?
What is the vat situation ?
Thanking you all in advance.

 

[Nautorius]

I think that someone will know.
Is it still the case that anyone can own a boat through a Gib. co. ?
What is the vat situation ?
Thanking you all in advance.

Yes anyone can own a Gib Registered boat. However Taxation depends on your location i.e. your country of Tax domicility> if an EU resident you need to pay VAT when the yacht enters EU waters (spain). There are various leasing schemes to get around this but not in Gib.Iit is all quite complex and this is a very simple answer. As an EU owner or company beneficial owner you can not do temporary import either, so when you enter EU Tax waters you are liable at your first port of call.

Paul

 

[Gerry]

Yes anyone can own a Gib registered boat,mostly by buying an off the shelf company and listing the boat as an asset. This can be quite expensive though, around 700 euros a year just to keep the paperwork up to date.

Don't know about the tax question, sorry.

 

[alant]

Yes anyone can own a Gib Registered boat. However Taxation depends on your location i.e. your country of Tax domicility> if an EU resident you need to pay VAT when the yacht enters EU waters (spain). There are various leasing schemes to get around this but not in Gib.Iit is all quite complex and this is a very simple answer. As an EU owner or company beneficial owner you can not do temporary import either, so when you enter EU Tax waters you are liable at your first port of call.

Paul

Isn't there a 6 month window when VAT/tax doesn't apply?

Enabling people to cross to North Africa, to maintain status?

 

[Tranona]

Isn't there a 6 month window when VAT/tax doesn't apply?

Enabling people to cross to North Africa, to maintain status?

No. As soon as the boat enters the EU it is potentially liable for tax (I say potentially because there are some exemptions, but they are complex and very restrictive) State of registration is irrelevant - it is the nature of the transaction that triggers the liability. The details are in HMRC VAT Notice No8, or in a user friendly form on the RYA website.

You may be confusing the issue with the export scheme which allows an EU resident to buy a boat in th EU tax free for use outside the EU. There is a mechanism for doing this, but it is restrictive and you have to comply with the rules.

 

[25931]

No. As soon as the boat enters the EU it is potentially liable for tax (I say potentially because there are some exemptions, but they are complex and very restrictive) State of registration is irrelevant - it is the nature of the transaction that triggers the liability. The details are in HMRC VAT Notice No8, or in a user friendly form on the RYA website.

You may be confusing the issue with the export scheme which allows an EU resident to buy a boat in th EU tax free for use outside the EU. There is a mechanism for doing this, but it is restrictive and you have to comply with the rules.

Does this mean that only vat paid boats may navigate EU waters ? What then is the situation for Americans, for instance, do they pay when they come here ?

 

[Nautorius]

Does this mean that only vat paid boats may navigate EU waters ? What then is the situation for Americans, for instance, do they pay when they come here ?

No,

This Applies to EU nationals. Non EU nationals and non EU Company Beneficial owners can do a temporary import (for Yachts) and that is for 18 Months without VAT being Paid (Aircraft 6 months). They can then leave the EU waters and come back in and Temporary import happens again. For the sake of this Gib is considered non EU, hence why a non EU flagged, non VAT paid yacht can stay in Gib Waters forever.

Under these rules if a Non-EU boat is skippered by an EU national (Crew) who is not the Beneficial Owner (and can Prove it) then they can also do a temporary import of the boat. However if an EU national registers a boat in a non- EU country (Gib) then is on board the vessel when it enters EU waters then VAT is Payable on the first port of call as they are the beneficial owners (even if through a non EU company)

Cheers

Paul

 

[doug748]

[QUOTE...........However if an EU national registers a boat in a non- EU country (Gib) ..

Cheers
Paul[/QUOTE]

This thread is gradually teasing out the strands of the issues.

I don't want to detract from your contribution Nautorius but on a small point of order, Gib is part of the EC, at least as far as these matters are concerned. See here:

http://www.nihamarine.com/RED ENSIGN GROUP.pdf

 

[Nautorius]

[QUOTE...........However if an EU national registers a boat in a non- EU country (Gib) ..

Cheers
Paul

This thread is gradually teasing out the strands of the issues.

I don't want to detract from your contribution Nautorius but on a small point of order, Gib is part of the EC, at least as far as these matters are concerned. See here:

http://www.nihamarine.com/RED ENSIGN GROUP.pdf[/QUOTE]

Just to let you know I am a Gib Resident. Gib is part of the EU through being a British Overseas Territory, but is outside the EU Vat Zone. It is part of the Red Ensign Group but is not part of the EU VAT Zone, and as such is considered a non-EU place for VAT issues including but not limited to Yacht, Vehicle and Aircraft Status. Therefore it is not EU for this situation (VAT Status). If you think all this is complex what are the residents....we are EU through British Passports but outside EU for tax status. Hence Gib boats and Vehicles are classed as non-EU For TAx Status.....which raises lots of issues with Spain if they want to get agressive (and sometimes do).

It is a bit of a minefield but a boat can exit the EU Tax zone by coming into Gib Waters (or better stay in a Marina Overnight) given the issues over what are Gib Waters....but that is a whole different discussion.

Cheers

Paul

 

[doug748]

Ah, thanks for that Paul.

I see, I think.

Perhaps the key point is that, for the ordinary Joe, there is no quick, foolproof money saver on the vexed issue of VAT.


In part answer to 25931's initial question, that same document seems to imply that there is no residence restriction for Guernsey and maybe we can assume other Red Ensign States.

 

[Tranona]

Does this mean that only vat paid boats may navigate EU waters ? What then is the situation for Americans, for instance, do they pay when they come here ?

Any non-EU resident can apply for temporary importation. There are some restrictions on how and by whom the boat can be used, but not a problem for a genuine tourist. The normal period is 18 months, but there are no practical restrictions on leaving the EU at the end of that time and re-entering under the same scheme. Details are in HMRC VAT Notice No8