If importing boat from EU on back of lorry? What happens about VAT?

[SeacretSailor]

2 potential used boats that I am interested in buying have come up for sale in Ireland and Spain. If I imported back to UK on back of lorry - what happens with regards to HMRC claiming VAT? From my understanding customs stop you at the dock when re-entering. Is this still the case if on the back of commercial truck and owner not present.

 

[chrishscorp]

VAT is only one issue, you will also likely to have to factor in the costs associated with the UK Recreational Craft Regulations so your imported vessel will need certification to UK standards and if its not you wont be able to use it after 1/1/23 in UK waters.

 

[DavidJ]

Recreational Craft Regulations so your imported vessel will need certification to UK standards and if its not you wont be able to use it after 1/1/23 in UK waters.

My reading is that as long as you bring the boat in from the EU before 1/1/23 (extended from 1/1/22 originally) then you do not need to re certify and can use it in the UK for ever.
and yes VAT is due and the importing agency will pay.

Confirmed: UKCA deadline extended to 1st January 2023 - The Compliance People

 

[SeacretSailor]

Thanks for the clarification. Apart from VAT are there any other import fees to pay?

 

[st599]

It depends on how much of the boat's components were built in the EU and how much "processing" was done in the EU.

From the UK Gov website
"To export tariff-free under the Trade and Cooperation Agreement, goods must meet the UK-EU preferential rules of origin. This means that there must be a qualifying level of processing in the country of export to access zero tariffs. This applies to EU origin goods imported and moving through the UK from an EU member state to another EU member state, as well as goods imported from outside of the UK or EU."

Also note that VAT is payable on the consignment value, not the boat price. (HMRC Valuation of Boat + Shipping + Fees)

 

[steveinnice]

Serious question does the VAT apply to every thing ? what about my car ? If I was a classic car collector could I just drive them over to avoid the tax? A bit like the smuggler with the wheelbarrow joke...

 

[st599]

Serious question does the VAT apply to every thing ? what about my car ? If I was a classic car collector could I just drive them over to avoid the tax? A bit like the smuggler with the wheelbarrow joke...

VAT applies to everything over your personal limit (about 400Euros) unless there's a relief or you have a temporary import licence (Carnet). A non-EU national can take a personal road vehicle in to the EU for up to 6 months or a yacht for up to 18 months, after that it's automatically imported and you owe tax (it's up to you to keep documentary evidence you removed the goods). However, if you're taking a race car that's not road legal you would either have to pay VAT or arrange a Carnet. You can't change the value of the item imported, so no new kit can be added.

There's already been a story in the press of someone driving a car load of bikes over to meet his mates who were flying in for a cycling trip. As he wasn't the owner, he received a large VAT bill.

For work equipment, you're basically stuck with a day at the Chamber of Commerce getting a Carnet, or risking large import and export bills.

ACU Discounted ATA Carnet for Movement of Motorcycle

 

[Tranona]

Thanks for the clarification. Apart from VAT are there any other import fees to pay?

Unlikely to be import duty. If you are using a truck then the haulier will require you to appoint a customs clearance agent to handle the import. You and they will need to agree the value of the boat with HMRC and they may well include your transport costs in the value so you will have to pay VAT on this as well. Suggest you talk to haulage companies who have experience of the new system. They will not take your boat without you having all the paperwork organised in advance.

 

[Portofino]

Serious question does the VAT apply to every thing ? what about my car ? If I was a classic car collector could I just drive them over to avoid the tax? A bit like the smuggler with the wheelbarrow joke...

When you reg them with the DVLA they have a form to fill in with the relevant supporting documentation.
You should sight it before importing .
Cars have age exemptions too again see the updated situation.
There may be a MOT requirement too .

A few yrs back I pulled into a Swiss garage to fill up the family hack a Range Rover .Saw a nice Testarossa on the forecourt.

iirc was 50 K CHF , the then fx made it £23000 .

It was the rare monospecio with rudge knock off hubs .

When I returned from the kiosk wife said “ that took a while “ as a bloke got the TR out of its lot .
I said “ where’s my passport dear as I am driving that ( pointing at the TR ) home ”

I just drove it up to Calais , through the tunnel on Swiss plates .
Once back in the U.K. wife phoned the DVLA ( no Internet days ) a form arrived ,
I took it to a F specialist for its engine out cam belts service a U.K. miles speedo and some U.K. lights fitted = passed its mot = got a U.K. reg number .
You are allowed to drive them to a garage for a mot btw as they are .

kept it for 10 trouble free yrs doing Euro trips .Surprising boot space up front .
Took £54 K when I sold it .Sold it to a Russian inc the original kmh Speedo and EU lights .Who subsequently drove straight off to Moscow ….he told me.It’s on Russian plates now .

Then I did it again 3 yrs ago saw an Italian Ferrari and imported it to the uk , reg it .
This time it’s over 40 so has classic car status , no VED , no MOT , and ULEZ exempt .Customs gave me a form for the DVLA stating the vehicle was up to date with import duties .Iirc I paid a tiny admin fee that’s all .Age exemption came into play .

The Swiss are tough with there eq MOT s , car taxes , insurance etc .So i ve got it on U.K. plates but it spends majority of time in CH .or London . National farmers Union do a deal with U.K. vehicles and machinery insurance wise for looooong stays in the EU .
Its lumped in on that .

I have never paid any taxes , vat etc when dealing with the U.K. DVLA .
Choose carefully.

 

[petem]

I have never paid any taxes , vat etc when dealing with the U.K. DVLA .

Why would the DVLA (Driver and Vehicle Licensing Agency) have anything to do with import duties or VAT?

 

[limecc]

Why would the DVLA (Driver and Vehicle Licensing Agency) have anything to do with import duties or VAT?

Typo

 

[petem]

When you reg them with the DVLA they have a form to fill in with the relevant supporting documentation.
You should sight it before importing .
Cars have age exemptions too again see the updated situation.
There may be a MOT requirement too .

A few yrs back I pulled into a Swiss garage to fill up the family hack a Range Rover .Saw a nice Testarossa on the forecourt.

iirc was 50 K CHF , the then fx made it £23000 .

It was the rare monospecio with rudge knock off hubs .

When I returned from the kiosk wife said “ that took a while “ as a bloke got the TR out of its lot .
I said “ where’s my passport dear as I am driving that ( pointing at the TR ) home ”

I just drove it up to Calais , through the tunnel on Swiss plates .
Once back in the U.K. wife phoned the DVLA ( no Internet days ) a form arrived ,
I took it to a F specialist for its engine out cam belts service a U.K. miles speedo and some U.K. lights fitted = passed its mot = got a U.K. reg number .
You are allowed to drive them to a garage for a mot btw as they are .

kept it for 10 trouble free yrs doing Euro trips .Surprising boot space up front .
Took £54 K when I sold it .Sold it to a Russian inc the original kmh Speedo and EU lights .Who subsequently drove straight off to Moscow ….he told me.It’s on Russian plates now .

Then I did it again 3 yrs ago saw an Italian Ferrari and imported it to the uk , reg it .
This time it’s over 40 so has classic car status , no VED , no MOT , and ULEZ exempt .Customs gave me a form for the DVLA stating the vehicle was up to date with import duties .Iirc I paid a tiny admin fee that’s all .Age exemption came into play .

The Swiss are tough with there eq MOT s , car taxes , insurance etc .So i ve got it on U.K. plates but it spends majority of time in CH .or London . National farmers Union do a deal with U.K. vehicles and machinery insurance wise for looooong stays in the EU .
Its lumped in on that .

I have never paid any taxes , vat etc when dealing with the U.K. DVLA .
Choose carefully.

Porto, your post is completely irrelevant as there was no VAT / duty to pay as we were still in the EU three years ago.

The situation is entirely different now and you'd therefore have to pay VAT on a car import like that.

Incidentally, you'd be talking to HMRC and not DVLA.

 

[Mr Googler]

I’ve read the RYA briefing on RCR and it appears any boat coming into the UK will need to pass the inspection unless it was originally certified by a UK based body

i was a bit confused by it all though

 

[DavidJ]

I’ve read the RYA briefing on RCR and it appears any boat coming into the UK will need to pass the inspection unless it was originally certified by a UK based body

i was a bit confused by it all though

Your right but the requirement got pushed by a year to Jan 1st 2023. Then we will need the inspection.
It doesn’t stop there. If I wanted to bring my S37 back from Spain after that date, would the KAD43’s pass the 2017 emissions requirement.?????

 

[Jamie Dundee]

Why would the DVLA (Driver and Vehicle Licensing Agency) have anything to do with import duties or VAT?

When you register an imported vehicle with the DVLA they require documentation showing that the vehicle is here legally. When I brought my Italian motorbike back to the UK (pre Brexit) the Italian registration docs were sufficient but registering from outside the EU required a lot more paperwork, including VAT status.

 

[westernman]

My reading is that as long as you bring the boat in from the EU before 1/1/23 (extended from 1/1/22 originally) then you do not need to re certify and can use it in the UK for ever.
and yes VAT is due and the importing agency will pay.

Confirmed: UKCA deadline extended to 1st January 2023 - The Compliance People

My understanding is that it would still need to be certified to RCD II/2013 (i.e. current version).
If it is an older boat, it will have been certified to RCD I. And it will be difficult to get it to pass RCD II.

Any one know for sure???

 

[Alicatt]

When you register an imported vehicle with the DVLA they require documentation showing that the vehicle is here legally. When I brought my Italian motorbike back to the UK (pre Brexit) the Italian registration docs were sufficient but registering from outside the EU required a lot more paperwork, including VAT status.

That's why I exported my Range Rover from UK to Belgium on 29th December 2020, no VAT and no import duties.
We buy and sell cars over the EU and it is quite painless if the vehicle is over 18months old. I bought a motorbike in the UK under a year old, kept it for 8months and sold it to the BiL at the 18month point, there was no import duties to be paid as it was now classed as used. mind you the Bil ran the bike for a lot of those first 8 months

 

[DavidJ]

My understanding is that it would still need to be certified to RCD II/2013 (i.e. current version).
If it is an older boat, it will have been certified to RCD I. And it will be difficult to get it to pass RCD II.

Any one know for sure???

I’ve got some enforcement dates here, but what will happen is anyones guess.
UK Recreational Craft Regulations 2017 (RCR) – HPi-CEproof Ltd.

 

[Portofino]

When you register an imported vehicle with the DVLA they require documentation showing that the vehicle is here legally. When I brought my Italian motorbike back to the UK (pre Brexit) the Italian registration docs were sufficient but registering from outside the EU required a lot more paperwork, including VAT status.

@pete this ^^^ you might be liable for import taxes or were then .
+ any VAT on that .
Principle is customs can issue you with what ever is needed , to meet any DVLA tick box exercise.

As I said best look it all up before importing and spot the loop holes like age etc .It does change .

How ever the boaty bit is unlike cars in the U.K. you do not ever need to register a boat .
Bit like me with cars CH reg cars or IT reg cars or U.K. I have and still do freely move across borders , arrive at the U.K. / French border and just buy a ticket .Nobody challenging “ Are you exporting / importing “ Irrespective of which vehicle on which plates or its origin .
You just drive through .
I could today either fly to Gibraltar or Moscow and pick a respective car and drive to the other .
Even passing through the Finish / Russian border all they are interested in is your personal pass port .

So with a boat why not just sail or truck it to the U.K. .Berth it up and walk away ?
How does any know say if arrived in the Hamble that you coast hopped from the Med ?

Same as if anyone asks the Russian re a Spanish car or the Spanish re a Moscow car that you are not just visiting ?

You don’t have to prove anything, nobody asks anything …..and this is with identifiable cars the plates etc .

This whole U.K. VAT on old boats , second hand boats is U.K. annal retentive artificially internet generated problem that in reality does not exist .

However do carry on Pete it’s hilarious listen to you .

 

[dunedin]

…………………..
So with a boat why not just sail or truck it to the U.K. .Berth it up and walk away ?
How does any know say if arrived in the Hamble that you coast hopped from the Med ?

……………..

This whole U.K. VAT on old boats , second hand boats is U.K. annal retentive artificially internet generated problem that in reality does not exist . ………….

So you believe you know more about this topic than the experts at the Cruising Association, British Marine, RYA etc etc? If so please provide supporting evidence and sources.

Or are you just recommending illegal falsification of the C1331 HMRC and Border Force processes plus criminal Tax Evasion ?

The changes since Brexit definitely do make VAT - and RGR/ RCR - real and potentially expensive issues for Uk boat owners, and not an “internet generated problem” (or your rather more purile comment).