How long can one cruise in the UK in an EU VAT paid boat?

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ds797

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So lets say a British person buys an EU VAT paid boat and keeps it in France.

My understanding is he/she can visit the boat for 90 out of 180 days without any visa/restriction.

Can the owner sail the vessel in UK waters for a cruise without paying UK VAT? If so what time limitations apply?

I'm guessing a few week summer cruise would be fine, but taking a permanent berthing contract would not.

Any thoughts/references?

Thank you :)
 
I'm not talking about importing the boat, or permanently mooring it in UK. The question is can you bring the boat to the UK for a holiday.... for example if you keep the boat in Cherbourg or St Malo, can you bring it to the UK for a two week cruise?

Thanks.
 
A get around I can possibly see is if you use a French bank ( make sure the bank is reg in France ) get a loan on it so it now “ owned “ by a French Co .Reg the boat hopefully they will insist in the lenders name in the EU .You could use any EU lender btw .Or reg it in say any EU flag .Eg Dutch . As long as it’s “ owned “ by a EU Co .

Lender gives after you ask for a letter saying it’s ok to use it between ( insert your 2 week dates of U.K. hols );something like this .
You are playing on the wording that a U.K. resident you are not banned or totally excluded , but the user in U.K. waters should “predominantly be for use by a none U.K. resident “

Taking some EU resident mates on this trip to the U.K. might help , certainly will not harm , just sit one at the helm as the U.K. customs pull up alongside. ;)

Be wary of the “predominantly “ phase in this ……

“[ can be used until the registration holder or their non UK representative leaves the UK up to a maximum of 18 months

Note: during these periods the vessel must predominately be for use by the non UK resident registration holder

For the purposes of relief the registration holder will be the person, company or trust in whose name the vessel is registered as the keeper or owner. This person, company or trust must be established outside the UK ] “


Reversing all this ( I have mentioned this in other threads ) here in Italy a few boats are U.K. reg d flying reds .
I have embarrassingly attempted to strike up conversations with the owners / crews ,only to find they do not speak a word of Eng and are Italian…..Infact by the looks of things “ predominantly “ the main users .
Further more I actually struck up a good conversation with the Guardia Finanza guys ( good Eng graspers ) and they said they were owned and thus registered with a U.K. bank “ perfectly legitimate “

Never got the bottom of exactly why ? What the angle was .What ever it is a lot seem do it !
Could be nothing to do with VAT mitigation, I suspect it hides the wealth as there is a wealth tax in Italy ??
They don’t own it , or only if push comes to shove perhaps a tiny amount of equity that slips under the wealth tax threshold trigger .Dunno ?

Perhaps I could raise this subject sat on a Italian owners large Ferretti , U.K. reg and flying a red while watching on his big screen England beat Italy on Sunday …….hmm maybe not !:LOL:
 
In essence no - however without reading the notes etc I do recall there are some specific maintenance provisions you could bring it back for, but unless it was 100% genuine you are taking a large risk. I also may have recalled incorrectly.

The odds of being caught are most likely low, however the bill would be huge if caught - quote possibly with penalties. Charter for a week!
 
Interesting, thanks!

I really thought you'd be allowed to do a two week summer cruise without being liable for VAT!
 
So how do British owners of "Cayman Islands" registered superyachts cruise the UK in summer then? :)

(genuine question!)
 
It will be owned by a company and in theory they should be paying full charter rate to use it. If they don’t pay there are real tax issues. What the Cayman Islands do about that I have no idea
 
ds797 said:
So how do British owners of "Cayman Islands" registered superyachts cruise the UK in summer then? :)

(genuine question!)
Click to expand...
Well first of all , the company that owns it is not in the U.K. it’s based in the Caymans .
Secondly which “ British owner “ .There is no requirement for Cayman Co ,s to publish the directors ( main controlling share holders ) names this info can be removed from the islands register ( which for a fee the public can access ) and stored elsewhere if the Co has certain exemptions .
Thirdly as JRudge says the guests who happen to be “ British “ when the vessel is enjoying U.K. waters could have simply charted it and be able to evidence that .

How ever it’s pretty obvious sometimes who the main beneficiaries are , particularly if there are never any other charter guests in between this persons useage .
Recently few EU residents have been taken to task on this in Italy and lost as the yacht is impounded until it’s fathomed out .

Most charter to multiple guests , some have dual seasons Med+ Caribbean……all perfectly above board and accepted by authorities .

They simply use the elephant test ……if it large gray has flappy ears , big feet , tusks and a trunk then it’s an elephant no mistake !

If it’s a foreign owned boat ( can be a Cayman Co ) used primarily for charter , who,s guest s can evidence that and is either on innocent passage or on Tempory 18 months importation , then that’s what it is.


You are thinking this “British “guy owns the boat and stupidly uses it exclusively for himself in U.K. waters without paying VAT .


Cayman Co structure below note bullet point 3
  • Can have one or more subscribers and thereafter multiple shareholders.
  • The minimum number and residency of directors and officers are subject to business activities.
  • No public disclosure of shareholders.
  • Accounts are required to be prepared and maintained but not filed.
  • Taxation and capital gains are not applicable in many cases.
 
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Best in mind you can do anything until you get caught.

You can do 80 on the motorway until a copper decides to Give you a ticket.

the rules prevent you from doing it and if you do you risk a financial penalty. It really is as simple as that

if others do it maybe their case is different. Maybe it isn’t. Maybe they will get caught. Maybe they won’t
 
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