barca nova
Well-Known Member
what is the situation in relation to taxes, particulalry if the boat was used in the uk before moving to ireland and therefore could not reclaim vat as an export
importing a british made boat from ireland
- Thread starter barca nova
- Start date
st599
Well-Known Member
Where are you resident?
The issue isn't just tax, does it meet the RCR or do you need to get it approved?
The issue isn't just tax, does it meet the RCR or do you need to get it approved?
dunedin
Well-Known Member
Ireland and UK can be complex, particularly due to the special case of NI vs the rest of UK, often referred to as GB.
Sometimes the complexity of NI could be advantageous - but often confusing (to everybody - us, officials, politicians)
I suspect that more information is needed, such as
- when did the boat depart from UK to Ireland
- was that done by the current or previous owner
- where was it on the Brexit key date
- has it been back in GB since then?
And possibly where might the sale be concluded (Ireland, NI or GB)?
Sometimes the complexity of NI could be advantageous - but often confusing (to everybody - us, officials, politicians)
I suspect that more information is needed, such as
- when did the boat depart from UK to Ireland
- was that done by the current or previous owner
- where was it on the Brexit key date
- has it been back in GB since then?
And possibly where might the sale be concluded (Ireland, NI or GB)?
Tranona
Well-Known Member
Post#3 covers most of the issues. The fact that the boat is UK built and was once in the UK is largely irrelevant. Before Brexit boats could move freely around the EU including the UK - and even if the boat went outside the EU VAT could not be reclaimed. The rules that governed movement in and out of the UK are Returned Goods Relief which allowed the owner of a VAT paid boat to bring it back, nominally within 3 years without paying VAT. If however it changed ownership outside the EU it lost VAT status and would be subject to VAT if imported by the new owner. It is important to understand that VAT is a tax on transactions not on the asset and importing a boat is a VAT transaction unless subject to a relief such as RGR (there are other reliefs, but rarely relevant to boats)
Brexit created two customs areas as explained in your other thread on the subject with the Republic in one (the EU) and UK in the other except NI where it is still unclear what the status of boats is. However if we assume the boat is in the Republic it will be subject to UK VAT and probably certification if it is imported into the UK unless the current owner is the person who took it to the Republic as it will probably qualify for RGR if he siled it to UK and the transaction took place here.
There is an unknown number of boats that are in that situation where they effectively have VAT status in both the EU and UK and the number will decline as time goes by as boats change hands. Except for this specific set of circumstances it means in practical terms Ireland like the rest of the EU is effectively off limits for UK resident buyers wanting to keep their boat in the UK.
Brexit created two customs areas as explained in your other thread on the subject with the Republic in one (the EU) and UK in the other except NI where it is still unclear what the status of boats is. However if we assume the boat is in the Republic it will be subject to UK VAT and probably certification if it is imported into the UK unless the current owner is the person who took it to the Republic as it will probably qualify for RGR if he siled it to UK and the transaction took place here.
There is an unknown number of boats that are in that situation where they effectively have VAT status in both the EU and UK and the number will decline as time goes by as boats change hands. Except for this specific set of circumstances it means in practical terms Ireland like the rest of the EU is effectively off limits for UK resident buyers wanting to keep their boat in the UK.
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Muddy32
Well-Known Member
So, if I buy a boat in France, of Danish build and registration, - do I have to pay English VAT if I import it and register it here?
Chiara’s slave
Well-Known Member
I think the short answer is yes. The complications of VAT mean that it might not be as bad as you first think, but don’t bank on it.
st599
Well-Known Member
If you are resident in the UK, not only pay VAT, but provide proof that it meets the UK Recreational Craft Regulations.
dunedin
Well-Known Member
No, but you do need to pay UK VAT
. And the CE / certification issues.Much covered elsewhere on here.
dunedin
Well-Known Member
Going back to the OP case, we haven’t heard as to the specifics (see post #3).
But the interesting oddball situation might be if the boat is say currently in Dublin, but the current owner moved it up to NI (which they can do as still within the “EU” VAT zone, due to NI special status.
If the boat was sold there the situation is interesting.
The buyer would be buying in the UK.
Nobody really understands this situation. If dig into the detail one might find that the owner could move to NI fine but may be less clear technically if can sell there. And technically the new owner may be deemed to be not UK VAT paid, even though within UK. I certainly don’t know.
I wouldn’t risk it with a million Euros superyacht, without getting clear professional advice (which might prove tricky as probably no precedents yet). But if it was a modest 30 year old boat originally built, sold and owned in the UK crossing back from NI?
But the interesting oddball situation might be if the boat is say currently in Dublin, but the current owner moved it up to NI (which they can do as still within the “EU” VAT zone, due to NI special status.
If the boat was sold there the situation is interesting.
The buyer would be buying in the UK.
Nobody really understands this situation. If dig into the detail one might find that the owner could move to NI fine but may be less clear technically if can sell there. And technically the new owner may be deemed to be not UK VAT paid, even though within UK. I certainly don’t know.
I wouldn’t risk it with a million Euros superyacht, without getting clear professional advice (which might prove tricky as probably no precedents yet). But if it was a modest 30 year old boat originally built, sold and owned in the UK crossing back from NI?
ylop
Well-Known Member
Given the capacity for enforcing it and even understanding it, then it might well be a tolerable risk depending on the OP's personal financial situation. Worth remembering that if its "legitimacy" might be questionable selling it on in future may become harder - but again the scrutiny people will bother with diminishes with value/age.
seanav
New Member
In a Yacht club in Dublin earlier in the year lamenting the UK secondhand market being effectively closed as an option for Irish buyers and was told that reasonably old 2nd hand boats imported from UK to Ireland were treated very generously by the Revenue , the Irish Tax Authorities , with tax calculated on a low notional value rather than purchase price ...... pointed out 2 yachts that had been brought from uk to Ireland where this had happened .......How long this continues is anyones guess
As for Northern Ireland , you're right , nobody understands it , because its a cobbled together mess ,leaving NI like schrodinger's cat, both in and out of the EU simultaneously ......I think it depends on the charitability of your tax official on the day