Gibraltar Registration VAT

[dwp]

I’m seriously considering buying a yacht that has Gibraltar registration, VAT has not been paid and I also understand that Gibraltar is ‘VAT Free’. The yacht is currently in EU water. Does anyone know what the VAT liability would be if the vessel was brought back to the UK and more or less permanently berthed there. I’ve heard that EU vessels that have not paid any VAT can be moved to the Channel Islands or France from the UK for a few days to avoid the payment of VAT. Would the same apply for a yacht with Gib Registration..
Thanks in advance.

 

[Tranona]

Lots of confusion about VAT here. First thing is that the state of registration has nothing to do with VAT "status", and neither does the citizenship or residence of the owner. The boat can be either EU VAT paid by virtue of having VAT paid in the current EU, or having been VAT paid in the "old" EU, that is including the UK BUT located in the EU on 31/12/20. You say VAT has not been paid - what evidence do you have? However it could still be legally in the EU IF the owner is non EU resident and the boat is there under the Temporary Admission rules which allows the boat to be there for 18 months without VAT being paid. If the owner is EU resident then it is probably there illegally.

I am afraid your last sentence is nonsense. If a boat is imported into the UK, VAT is payable on entry. It is irrelevant where it was before. The boat will also need to be recertified to current UK standards. There is no way round this for a UK resident, although a non UK resident may take advantage of the UK Temporary Admission rules.

So, if you are a UK resident and you wish to use the boat in the UK (even for one day!), the combination of VAT and recertification (from 1/1/2023) make it extremely difficult both financially and technically - particularly with older boats.