Gibraltar VAT ?

[Jmc1764]

If buying a boat in Gibraltar do you have to pay UK VAT or is it classed as UK for tax purposes ?

 

[Tranona]

Gibraltar is not in the UK VAT area - so why would you pay UK VAT? You would only pay UK VAT if you imported the boat into the UK, or EU VAT if you imported it into the EU. If you are a UK resident you can use temporary Importation rules to use the boat in the EU.

 

[lustyd]

If you are a UK resident you can use temporary Importation rules to use the boat in the EU

I know you know this but to be complete if you're UK resident then any trip to UK would be considered an import which is worth adding to your info. As such, unless the boat will only be used in the place you're not resident you may as well import it and tax where you are resident.

Edit - sorry misread as guernsey so this probably isn't as relevant as I thought!

 

[Tranona]

Thing about TI in Europe is that in many situations you can turn it into effectively permanent as a non resident by leaving the EU every 18 months - W Coast of France to CIs,, W Med to N Africa E Med to Montenegro, Albania, Turkey, N Cyprus. Needs a bit of planning of course.

 

[lustyd]

Yes when I realised it was Gib I thought that too as there's very little danger of accidentally sailing to the UK ? Is there not still a question over Gib though in terms of them now being Schengen and whether the seas there are considered EU?

 

[Spirit (of Glenans)]

Yes when I realised it was Gib I thought that too as there's very little danger of accidentally sailing to the UK ? Is there not still a question over Gib though in terms of them now being Schengen and whether the seas there are considered EU?

The seas there are largely EU as OP will quickly tire of the fleshpots of Gib and wander in the direction of Spain or Portugal

 

[lustyd]

The seas there are largely EU as OP will quickly tire of the fleshpots of Gib and wander in the direction of Spain or Portugal

What I meant was since the Schengen changes can you still keep the boat in Gib without paying EU VAT? I've a feeling it's a yes but asked because one of you will know the answer

 

[dunedin]

What I meant was since the Schengen changes can you still keep the boat in Gib without paying EU VAT? I've a feeling it's a yes but asked because one of you will know the answer

Schengen is about people. VAT is about boats (though this has a people dimension about residence of owner)

 

[Graham376]

Schengen is about people. VAT is about boats (though this has a people dimension about residence of owner)

It appears people entering Gib still have the 90 day clock ticking as it's now part of Schengen but, what about the boat? If someone's using TI 18 month rule in say Spain, does entering Gib reset that clock or, is it still counted as being in EU waters?

 

[Tranona]

I would say it is not the "waters" that count, but the fact that Gib is not in the EU VAT area, and TI is about being in the VAT area.

 

[Spirit (of Glenans)]

I'm beginning to believe that 'Brain Fog' is not caused by Covid but by Brexit