Guernsey Vat Brexit

Paul_S123

Paul_S123

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I know there's a few brexit Vat threads around ATM, but...I am looking at buying a non vat paid boat from Guernsey and taking it to Spain next month.

So I am UK national. Boat is Guernsey Registered. I don't want to pay vat on it.

My limited understanding is that EU citizen buys non vat paid boat...takes it to EU, vat is due at time and point of entry.

If non EU citizen buys the same non vat paid boat...takes it to EU, they then can keep it there for up to 18 months...go out the country then continue that trend. No vat is ever paid.

As of Jan 1, by merit of being a Brit, then we cease to become EU citizens, so I then fall into the above non vat paying boat owner.

So it would it would pay me to keep it in Gib for December, then sail it into Spain Jan 2nd.

Thoughts...........................
 
Yes. If you do it now you must pay the tax on arrival.

the only unknown is what or brexit deal / no deal looks like and if there is some clause stopping this. It won’t be specific to boats as they don’t have time but there could be some sweeping statements that xyz still apply.

given the way it is going I don’t see that as particularly likely !
 
Yes
I think it is worth the risk of keeping it in Guernsey until Jan 1st 2021.
In fact, I don't think there is a risk.

For you, after Jan 21, I think it would go one of two ways.
Either you will have to pay VAT on entry or you will be able to play the 18 month TA game.

If you take it to Spain before Jan 1st, you will definitely have to pay VAT at point of entry.

So, IMO, it is a no brainer - keep it in Guernsey until Jan 1st.
 
Unless it's got a very large fuel tank you'll be landing in an EU country going to Gib, so would be liable for VAT. This won't happen after Jan 1st though, so it would pay to keep it in Guernsey until then as Hurricane suggests.
 
Paul_S123 said:
I know there's a few brexit Vat threads around ATM, but...I am looking at buying a non vat paid boat from Guernsey and taking it to Spain next month.

So I am UK national. Boat is Guernsey Registered. I don't want to pay vat on it.

My limited understanding is that EU citizen buys non vat paid boat...takes it to EU, vat is due at time and point of entry.

If non EU citizen buys the same non vat paid boat...takes it to EU, they then can keep it there for up to 18 months...go out the country then continue that trend. No vat is ever paid.

As of Jan 1, by merit of being a Brit, then we cease to become EU citizens, so I then fall into the above non vat paying boat owner.

So it would it would pay me to keep it in Gib for December, then sail it into Spain Jan 2nd.

Thoughts...........................
Click to expand...
Citizenship is not an issue here. The issue is residency.
 
MystereMarcus said:
Unless it's got a very large fuel tank you'll be landing in an EU country going to Gib, so would be liable for VAT. This won't happen after Jan 1st though, so it would pay to keep it in Guernsey until then as Hurricane suggests.
Click to expand...
It's a sailboat...but yes I was worried if the transport company run into some shit weather etc, they will be currently EU residents, so that could be a problem.

I did get a quote to stick it on a ship, but 3k to sail it versus 10k to put it on a ship to Gib is a bit much...to save a month.
 
I am not an Expert, I could recommend a broker in Guernsey who could help you if you PM me.

As a Guernsey resident bought a boat owned by another Guernsey resident in Portugal that was VAT Free, Vendor delivered it to GIB where the sale was processed outside the VAT area.

The Boat was shipped from GIB to Southampton where I collected It.

I understand there may be a 12 month Stay of Execution for VAT changes for UK owned boats deferred to Jan 2022?
 
Paul_S123 said:
I know there's a few brexit Vat threads around ATM, but...I am looking at buying a non vat paid boat from Guernsey and taking it to Spain next month.

So I am UK national. Boat is Guernsey Registered. I don't want to pay vat on it.

My limited understanding is that EU citizen buys non vat paid boat...takes it to EU, vat is due at time and point of entry.

If non EU citizen buys the same non vat paid boat...takes it to EU, they then can keep it there for up to 18 months...go out the country then continue that trend. No vat is ever paid.

As of Jan 1, by merit of being a Brit, then we cease to become EU citizens, so I then fall into the above non vat paying boat owner.

So it would it would pay me to keep it in Gib for December, then sail it into Spain Jan 2nd.

Thoughts...........................
Click to expand...
I dont think it works like that unless your a Channel Islands resident .

EU countries want the vat paid at point of entry .

Of course I stand to be corrected .
 
volvopaul said:
I dont think it works like that unless your a Channel Islands resident .

EU countries want the vat paid at point of entry .

Of course I stand to be corrected .
Click to expand...
Actually, I think thats the point about TA
Pre 31st Dec 2020, you are probably right - I believe that a UK citizen can't do TA (Temporary Import) into the EU only a non EU resident could do the TA.
But after 31st Dec 2020, a UK Citizen will not be an EU Citizen so should be able to operate a TA (18 month scheme)
I think the idea is so that a non EU visitor (tourist) can take cars/caravans etc for short periods into the EU without having to import them.
I believe that concept translates through to boats.
Of course, before 31st Dec 2020, a UK Citizen is also an EU Citizen so TA wouldn't be available.
However, I believe that before 31st Dec 2020 you can opt to pay the VAT in any EU country as long as you actually visit that country.
Hope that makes sense - thats how I see it anyway.
 
Hurricane said:
However, I believe that before 31st Dec 2020 you can opt to pay the VAT in any EU country as long as you actually visit that country.
Hope that makes sense - thats how I see it anyway.
Click to expand...

I remember when I bought my boat new in 2002 we had it delivered to France then Spain I believe within 6 months I could have got a rebate on my UK Vat which was 17.5% and paid Spanish IVA of 16% giving me a saving of 3 thousand quid.
Seemed too complicated so went boating instead. Wish I’d done it now!
 
Last edited:
DavidJ said:
I remember when I bought my boat new in 2002 we had it delivered to France. I believe within 6 months I could have got a rebate on my UK Vat which was 17.5% and paid French VAT of 15% giving me a saving of 3 to 4 thousand quid.
Seemed too complicated so went boating instead. Wish I’d done it now!
Click to expand...
I really don't think that would have made any difference.
The boat is now and will be (whilst is is in the EU) an EU "Good" whatever EU country at the time took the VAT
 
Hurricane said:
Actually, I think thats the point about TA
Pre 31st Dec 2020, you are probably right - I believe that a UK citizen can't do TA (Temporary Import) into the EU only a non EU resident could do the TA.
But after 31st Dec 2020, a UK Citizen will not be an EU Citizen so should be able to operate a TA (18 month scheme)
I think the idea is so that a non EU visitor (tourist) can take cars/caravans etc for short periods into the EU without having to import them.
I believe that concept translates through to boats.
Of course, before 31st Dec 2020, a UK Citizen is also an EU Citizen so TA wouldn't be available.
However, I believe that before 31st Dec 2020 you can opt to pay the VAT in any EU country as long as you actually visit that country.
Hope that makes sense - thats how I see it anyway.
Click to expand...
I know I keep harping on about it but please dont confuse citizenship and residency. The latter RESIDENCY is what matters for VAT purposes.
 
DavidJ said:
I remember when I bought my boat new in 2002 we had it delivered to France then Spain I believe within 6 months I could have got a rebate on my UK Vat which was 17.5% and paid Spanish IVA of 16% giving me a saving of 3 thousand quid.
Seemed too complicated so went boating instead. Wish I’d done it now!
Click to expand...
Just thinking and I’m far too honest to have done it but I could have got a rebate and kept quiet. I would still have my sales invoice showing vat paid.
 
I am reviving this thread to learn whether things are working out as expected...

As a British citizen (US/British), without residency anywhere in the EU, I can now buy a non Vat paid boat in Guernsey, and take it to the EU without incurring a VAT liability as long as the boat leaves the EU within 18 months.

Is that correct?

If I do, acquire residency in an EU country, VAT will be payable immediately upon the boat entering EU waters, but not as long as it stays outside EU waters. For this purpose, Antigua would be fine, but St. Barts.., would not be fine.

Is that correct?
 
L
Laser_310 said:
I am reviving this thread to learn whether things are working out as expected...

As a British citizen (US/British), without residency anywhere in the EU, I can now buy a non Vat paid boat in Guernsey, and take it to the EU without incurring a VAT liability as long as the boat leaves the EU within 18 months.

Is that correct?

If I do, acquire residency in an EU country, VAT will be payable immediately upon the boat entering EU waters, but not as long as it stays outside EU waters. For this purpose, Antigua would be fine, but St. Barts.., would not be fine.

Is that correct?
Click to expand...
Laser 310 you need to take professional advice I am not an expert in this, it appears this way in Europe but I have no idea about French TOM and DOM in west coast North America.
 
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