Paying Vat

J

JYAK

New Member
Joined
14 Mar 2018
Messages
9
Visit site
Some of you might think I'm crazy, but im going through the process of buying a secondhand boat from France and will be transporting it to the Uk,i was just wondering how long do you get to pay the vat as soon boat is back in the uk as it's not very clear
Thanks in advance
 
JYAK said:
Some of you might think I'm crazy, but im going through the process of buying a secondhand boat from France and will be transporting it to the Uk,i was just wondering how long do you get to pay the vat as soon boat is back in the uk as it's not very clear
Thanks in advance
Click to expand...
My understanding is that it you have to pay the VAT immediately in order to be able to get the boat through UK customs.

Have a look here:-
https://assets.publishing.service.g...hment_data/file/946396/C384_Vessels_02_19.pdf
 
JYAK said:
Thanks for the link,good to be prepared before I meet with the dreaded Customs?
Click to expand...
So most on here will not actually have been through the process of paying VAT on an imported boat, I have. So their views are the theory, mine is the practice.

Just be aware that once you have rung HMRC Small Craft unit, the blip on their radar does not fade for a very long time ! After I made an initial enquiry I received a regular call every few weeks until I concluded my purchase of a non UK VAT paid boat in Jersey, indeed had I not proceeded I would have fully expected a visit just to check !!!

Also avoid paying UK VAT on any items or fees that you do not have to - French Brokers fees payable by the vendor - ask to pay these direct and have them removed from the principal invoice, indeed any additional expenses in France as part of the purchase - French ferry fares, Hotel fees, food whilst in France, etc, can also be added to this sum to reduce the purchase invoice. Secondhand inventory items as secondhand minor items are exempt vat payments, again negotiate these as a separate sum and again not to be shown on the main invoice for the boat purchase.

Obviously do not take the p1$$ too much but do be quite bold. When I bought my Corvette in Jersey I saved about £1,000 on ~ £5,000 of fees / inventory and was never challenged about my declaration at all.
 
Last edited:
JYAK said:
Thanks for the link,good to be prepared before I meet with the dreaded Customs?
Click to expand...
Good lord there is nothing to fear. My wife is an accountant and finds them really helpful. It is just a matter of making sure you follow the rules and get their agreement, in writing, they are not there to trip you up (less you have something to hide).
 
superheat6k said:
Just be aware that once you have rung them, the blip on their radar does not fade for a very long time !

Also avoid paying UK VAT on any items or fees that you do not have to - French Brokers fees payable by the vendor - ask to pay these direct and have them removed from the principal invoice, indeed any additional expenses in France as part of the purchase can also be added to this sum to rescue the purchase invoice. Secondhand inventory items as secondhand minor items are exempt vat payments, again negotiate these as a separate sum and again not to be shown on the main invoice for the boat purchase.

Obviously do not take the p1$$ too much but do be quite bold. When I bought my Corvette in Jersey I saved about £1,000 on ~ £5,000 of fees / inventory and was never challenged about my declaration at all.
Click to expand...
Thanks a lot,that’s a very good tip,I shall look into this before I pay the final balance,maybe I could remove an outboard and just say it’s been stolen to drop the value??
 
JYAK said:
Thanks a lot,that’s a very good tip,I shall look into this before I pay the final balance,maybe I could remove an outboard and just say it’s been stolen to drop the value??
Click to expand...
The best way to reduce value is to keep the boat in the EU for a year or so, then claim that the value has reduced because of lack of maintenance and heavy use including a couple of storms.

This is basically what the previous owner of my boat did when he imported it brand new from Canada. He had it sailed on its own bottom from Canada directly to the UK and then claimed it was now a very worn no longer new boat. It seems that HMRC accepted a valuation at less than 1/3 of the build cost.
 
Suggest you read this Sailing a pleasure craft that is arriving in the UK although it says it is for arriving by sea, the principles are the same for bringing a boat on a trailer (which I assume you plan to do) In there you will find the contact details for the unit of HMRC in Portsmouth that handles imports of pleasure craft. Call them and ask for advice. No point in talking to the local VAT office - they won't have a clue!
 
westernman said:
The best way to reduce value is to keep the boat in the EU for a year or so, then claim that the value has reduced because of lack of maintenance and heavy use including a couple of storms.
Click to expand...

I'd he did that, he'd go beyond the grace period for RCD being valid.
Any savings on VAT would be swamped by proving his boat met UKCA status - especially if it doesn't have a recent engine and needed work to pass the emissions tests.
 
When I lived in France I bough an 1986 boat and brought it back to the UK and was not asked to pay any VAT and it never even crossed my mind that I would be asked to pay VAT.
But the French often keep documents far longer than we do, The boat was up for sale in France with a broker and they had the original invoice from 1986 that showed that VAT had been paid.
Surely if you bring a boat to the UK you dont have to pay VAT if its already been paid previously.
Also I brought it back on the Ferry Roscoff to Plymouth, might have been different if I sailed it into Brighton Marina as The VAT Office based at the Marina once sent an Inspector up to Manchester to check on a boat that I had sailed over from the Channel Islands, It had been sold in the UK a week before VAT was introduced in 1973 and exported. I had to pay £450 in Vat.
 
Jim@sea said:
When I lived in France I bough an 1986 boat and brought it back to the UK and was not asked to pay any VAT and it never even crossed my mind that I would be asked to pay VAT.
Click to expand...

That's because the UK was in the EU at the time and so both countries were in the same customs union - VAT paid in one part of the EU counted as paid anywhere else in the EU.

Jim@sea said:
Surely if you bring a boat to the UK you dont have to pay VAT if its already been paid previously.
Click to expand...

'B' has happened since then changing the rules a bit. The possibility of double VAT has always existed depending on where you went with the boat, how long you were away, or any ownership change while you away. It's just that where you go for any of this now includes anywhere out of the UK, whereas previously it was out of the EU.
 
Last edited:
If you moved your residence from one country (UK, EU or RoW) to a country in the EU or to the UK, you could always bring all your chattels into the country of your new residence without paying import taxes or VAT provided that you have owned those things for a certain period (generally 6 months) before your move and do not sell them again within a certain period after your move (generally 6 months).

A friend of mine did this to import a Ducati motor bike and a Corvette car into France when he moved there from California. He re-registered both in France without any issues and without paying any taxes.

Boats follow the same rules as cars.
I don't think Brexit has changed anything significant here.

I think Jim@sea's case will work in exactly the same today as before. He was resident and moved his residence and all his chattels to his new residence in the UK.
 
Returning residents relief is still available, However not sure it applies to the OP - he is very clear he is buying a boat in France for use in the UK.
 
westernman said:
If you moved your residence from one country (UK, EU or RoW) to a country in the EU or to the UK, you could always bring all your chattels into the country of your new residence without paying import taxes or VAT provided that you have owned those things for a certain period (generally 6 months) before your move and do not sell them again within a certain period after your move (generally 6 months).
Click to expand...

Yes, but the rules are fairly strict. You have to be permanently moving from one country to another. Here are the rules...

Transfer of residence to the UK

There is a procedure to go through and it involves interacting with customs on arrival - and more onerous if the goods travel separately. That gets over the VAT/duty issue if bringing a boat with you, but you may still have RCD/RCR problems after the end of this year.
 
Jim@sea said:
Surely if you bring a boat to the UK you dont have to pay VAT if its already been paid previously.
Click to expand...

You have since last year.

RYA said:
Before crossing the UK border you must tell customs about (‘declare’) any goods that are
not covered by your personal allowances13 or that are banned or restricted14. If you go over
an allowance, you will have to pay tax and duty on all the goods in that category.
When you arrive in the UK from abroad with your boat, the default position is that import
VAT and duty are payable on the value of the boat at the time of import unless you are
entitled to relief. This applies to all movements of goods, including personal possessions
and means of transport.
Click to expand...

https://wayfarer.org.uk/wp-content/uploads/2022/01/RYA-VAT-GUIDE-FOR-BOATS.pdf
 
AngusMcDoon said:
Change of ownership nullifies that relief.
Click to expand...
He would need to have owned the boat while still resident abroad. The boat does not have to be bought in the UK. When I said it was still available, I did not mean it was available to the OP. The "change of ownership" bit is related to RGR, not to returning residents.
 
Thank you very much everyone,you all have been extremely helpful,i certainly got a lot to think about before i bring this boat through customs on a trailer,sure they be on me like a rat up a drain pipe lol,im not looking to avoid paying vat completely,but if i could shave off a few quid,it all helps
 
You must log in or register to reply here.

Other threads that may be of interest

steved
Original boat paperwork
2
Replies
30
Views
1K
steved
steved

Share this page

Top