Reclaiming VAT on exported goods (Sail)

[affinite]

Does anyone know if there is a way of claiming back VAT on goods exported to a country outside the EU
ie sending a UK manufactured sail to Turkey
Can the (UK) supplier zero rate it in those circumstances?
I know it will be tricky but 20% of the cost of my new sail is £400

 

[Tranona]

Yes. The paperwork must clearly show that the goods are being exported. The supplier should know how to do this.

 

[macd]

Does anyone know if there is a way of claiming back VAT on goods exported to a country outside the EU
ie sending a UK manufactured sail to Turkey
Can the (UK) supplier zero rate it in those circumstances?

As Tranona wrote, yes they can.
Trouble is, then you have to get the goods into Turkey, who will likely levy their own taxes.
There is, of course, a tax dispensation for "vessels in transit", but you'd need an agent (and probably an interpreter, and letters granting power of attorney) to avail yourself of that. I've been through all this importing an engine from EU to Turkey which, because of the value, was worthwhile. It may well not be for your sails.

Of course any VAT you saved would be lost again when you declared the import of the sails on return to the EU

 

[john_q]

I bought some wheelhouse windows in the UK and had them shipped to a freight forwarder in Miami for onward shipping to Guatemala

The UK supplier told me that as long as the invoice address was not in the EU and the goods were being sent to a freight forwarder no VAT was applicable and I was not charged any VAT.

Indeed the goods sailed through the US customs as well as they were goods in transit.

 

[truscott]

If you are flying from the UK to Turkey, it may be worthwhile to have the sail loft fill out the VAT reclaim form. Then you can swing by the VAT station and get the goods sighted etc... bung the form in the box there, and the VAT will get repaid to your Credit Card. If you are then flying direct to Turkey, you may get lucky and have no questions asked.

I had this kind of luck with my standing rigging (although in my case I flew elsewhere first and then flew in with the rigging a few months later).

Cheers, PT

 

[jimbaerselman]

Errm. Are you guys sure about what you say?

Turkey has had a customs union agreement with the EU since about 1995. It includes leisure boats and textiles.

 

[Palarran]

Can I ask an associated question? If you have a non-EU registered boat in Turkey, can you claim VAT exempt for items added? I'm having a Passerelle installed which is quite expensive and wonder if it is VAT exempt.

 

[Tranona]

Can I ask an associated question? If you have a non-EU registered boat in Turkey, can you claim VAT exempt for items added? I'm having a Passerelle installed which is quite expensive and wonder if it is VAT exempt.

The registration of the boat is irrelevant. VAT is a tax on transactions so whether it is liable to VAT depends on the nature of the transaction. Technical term is "chargeable event". It is the sale of goods to a customer outside the EU that potentially makes it not subject to VAT.

 

[macd]

Errm. Are you guys sure about what you say?

For my part, yes. Got the T-shirt.

Turkey has had a customs union agreement with the EU since about 1995. It includes leisure boats and textiles.

This is true. I've no idea what that means in practice. I've looked it up as best I can. It seems to apply to treatment of trade by company to company, rather than private importation. It's compicated.
However, I do know that one can buy duty-free on flights from the EU to Turkey, and equally that there are limits on the amount. Just like the old days between EU states, when they were subject to distinct customs regimes.

A bigger 'however', comes from a well-known and highly-regarded boating website, re Turkey:
Yacht Spares. Spares for yachts in transit may be imported duty free, and should be clearly labelled "Replacement parts for yacht in transit S/Y XXX c/o YYY marina". There is no difficutly if they are imported as accompanied luggage. It is rarely worth while having spares shipped independently. Tedious and expensive procedures will often double your costs, making expensive local purchase better value.

VAT paid boats should remember they lose VAT paid status after 3 years outside the EU, or if they are bought or sold when outside the EU.

In other words, Turkey is not part of the EU VAT area.

Source: http://www.jimbsail.info/turkey

 

[affinite]

For my part, yes. Got the T-shirt.



This is true. I've no idea what that means in practice. I've looked it up as best I can. It seems to apply to treatment of trade by company to company, rather than private importation. It's compicated.
However, I do know that one can buy duty-free on flights from the EU to Turkey, and equally that there are limits on the amount. Just like the old days between EU states, when they were subject to distinct customs regimes.

A bigger 'however', comes from a well-known and highly-regarded boating website, re Turkey:
Yacht Spares. Spares for yachts in transit may be imported duty free, and should be clearly labelled "Replacement parts for yacht in transit S/Y XXX c/o YYY marina". There is no difficutly if they are imported as accompanied luggage. It is rarely worth while having spares shipped independently. Tedious and expensive procedures will often double your costs, making expensive local purchase better value.

VAT paid boats should remember they lose VAT paid status after 3 years outside the EU, or if they are bought or sold when outside the EU.

In other words, Turkey is not part of the EU VAT area.

Source: http://www.jimbsail.info/turkey

Jims info re Turkish import duty is interesting but I've decided that there is no easy way of getting the sail out of the UK as accompanied luggage VAT free without lying to Customs at the airport. Apparently as an EU citizen I can only reclaim VAT if I'm going to spend more than 12 months outside the EU, which I'm not. I'll just accept that I have to pay the VAT (like almost everyone else)

 

[macd]

Jims info re Turkish import duty is interesting but I've decided that there is no easy way of getting the sail out of the UK as accompanied luggage VAT free without lying to Customs at the airport. Apparently as an EU citizen I can only reclaim VAT if I'm going to spend more than 12 months outside the EU, which I'm not. I'll just accept that I have to pay the VAT (like almost everyone else)

I think that's right, affinite. The only 'easy' way it can be supplied to you VAT-free is if shipped from supplier direct to Turkey, which brings its own hassles and costs at the other end. From my experience it's only really worth the bother if the VAT payable would be, say, €1000 or more.

 

[duncan99210]

I've no idea if the Turkish customs are any different now but it was difficult dealing with them in the mid 1990s when I was stationed there for three years. I recall one time when a UK supplier thought he was being helpful and sent some spare parts for the car to me via courier as opposed to via the BFPO address (which came via the FCO bag). I wound up taking our agent with me to the customs office along with the dead headlight remains, which were then solemnly exchanged for the new lights from UK after about ten days of collecting forms, getting them signed and stamped and so on and so forth.

 

[jimbaerselman]

A bigger 'however', comes from a well-known and highly-regarded boating website, re Turkey:
Yacht Spares. Spares for yachts in transit . . .

Source: http://www.jimbsail.info/turkey

Nice one MacD! Looks like I'd better go back and review this one. I was hoping you had a definitive answer!
Back to HMRC . . .

 

[macd]

Nice one MacD! Looks like I'd better go back and review this one. I was hoping you had a definitive answer!
Back to HMRC . . .

Jim, the information on your website tallies entirely with our experience in shipping an engine from the EU to Turkey two years ago. Indeed it was precisely that information (backed up by confirmations elsewhere) which caused us to embark on the importation. I don't believe it needs any revisions and am bloody glad I read it

My point was that the comments I lifted from your website are at odds with your assumptions (cf post #6) about the preferential trade agreement between EU and Turkey. My belief is that the trade agreement has no bearing on personal imports/exports, and definitely no bearing on end-buyer VAT, which is what this thread is about.

 

[MikeCC]

The couple of times we've sent spares to Turkey it's been a problem. This included refusal to release the goods unless customer went in person to airport and paid a customs agent to clear them. Oddly enough, sending to a Turkish national at a non-marina address went without a hitch.

If boat is located as per your profile, get it sent to Greece. Shipping cost will probably be less as well.

 

[chrisb]

Can't comment on Turkey but if exporting outside of EU with in 3 months of purchase Then get the retailer to complete the VAT p3ersonal export form and agree to refund the Vat to your card/account . Vat must be paid initially . The form must be stamped by a customs officer at the point of depature and posted back to the retailer for refund to be made .
Not all customs officers even at heathrow will be aware of this and you do have to stand your ground on occasions . It is perfectly legal to do this . On arrival the packages need to be labell3ed yacht in transit and declared . Ships pape3rs need to be carried . Rember than you can usually import goods up to a certain value without declaring them

 

[chrisb]

It is worth knowing that cactus/mes ltd will export VAT free outside the EU using DHL at a very reasonable and fixed rate

 

[Birdseye]

The registration of the boat is irrelevant. VAT is a tax on transactions so whether it is liable to VAT depends on the nature of the transaction. Technical term is "chargeable event". It is the sale of goods to a customer outside the EU that potentially makes it not subject to VAT.

Are you sure? The sale is to a british guy on a british boat. Sure he happens to be in Turkey but arguably the sail isnt leaving the UK but staying in UK territory ie on a UK flagged vessel.

 

[macd]

Are you sure? The sale is to a british guy on a british boat. Sure he happens to be in Turkey but arguably the sail isnt leaving the UK but staying in UK territory ie on a UK flagged vessel.

Tranona's reply was not in response to the OP's question, but to this one (post #7): "If you have a non-EU registered boat in Turkey, can you claim VAT exempt for items added? I'm having a Passerelle installed which is quite expensive and wonder if it is VAT exempt."

So "a sale to a british guy on a british boat" is irrelevant. But anyway, the flag of the vessel is irrelevant: a British yacht in Turkey is not part of the EU VAT area. And yachts don't buy things: people do. (And companies, if that's relevant.)

Anyway, as said, if the boat is in Turkey, the goods in question can be sent from EU to Turkey VAT exempt, but thereafter Turkish tax rules apply. If they are ships spares, special arrangements exist for not paying import duties and the Turkish equivalent of VAT. However, it's going to cost heaps to avail yourself of this arrangement, which would make it non-viable for goods of a value of less than £4K (in very round figures). Been there, done it.

 

[Birdseye]

So "a sale to a british guy on a british boat" is irrelevant. But anyway, the flag of the vessel is irrelevant: a British yacht in Turkey is not part of the EU VAT area. And yachts don't buy things: people do. (And companies, if that's relevant.).

This is the issue I was wondering about. On the high seas, a patrol boat from say the USA has to get the permission of the british government to board a british flagged vessel (which the UK govt being a client state automatically gives). But this situation arises because the legal jurisdiction belongs to the flag state of the vessel. You murder your wife on board your boat and its the UK criminal court you end up in eventually. To my mind it follows from this that the sails are being delivered via Turkey to a small floating piece of the UK, your boat. They arent being exported as they would be if they were being supplied from the UK to a Turkish vessel.


Might be different with VAT - there is no requirement for the law to be consistent