Rules for EU-VAT boats after brexit?

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GTom

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I know it is still mostly guesswork as we still don't know if brexit is actually happening or not: got to wait until 32 January or even longer...

Many topics are discussing how to keep the EU VAT paid status (spend B-Day/Night in a French/Irish marina), that part is more or less clear. However, what happens afterwards? How long can you keep an EU VAT paid boat in the UK? What if you move your residency to the EU in the meantime?
 
Wake up, Brexit is happening.

Good question though about afterwards, something I've not seen asked before. No idea how long a boat can remain in the UK as far as EU are concerned, to retain status there after it's returned to UK after Brexit. Maybe, they have the same Returned Goods limit that we have, is it EU Customs law? OTOH, how do they know where it is? I doubt whether residency has any bearing, unless it's Spain where the boat has to be declared.
 
I saw a report about harmonising such things licensing, registration, taxation and qualifications across the EU boating sector, so Brexit aside, I would not expect the current situation in euroland to be set in stone.
 
Baggywrinkle said:
The EU has returning goods relief too, so an EU VAT paid boat can visit the UK and as long as it is returned to the EU within 3 years, in the same ownership and unmodified other than servicing and repairs.

Goods re-imported into the European Union (EU)
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That part is clear, question is how long before the British ask for a VAT payment? 18months as the EU does? I guess one can't exploit both returning goods relief options at the same time:)).
 
GTom said:
That part is clear, question is how long before the British ask for a VAT payment? 18months as the EU does? I guess one can't exploit both returning goods relief options at the same time:)).
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Depends if you are a UK citizen. If you are, then temporary import is not available to you in the UK and moving an EU VAT paid yacht into the UK will immediately attract VAT or have to go through the RGR process if the conditions are met.

I guess it might be possible to claim VAT paid in both territories using RGR. Brexit is a unique situation in that the common customs area is being split up, so goods are moving from being duty paid in both areas to duty paid in only one. Up to 3 years after Brexit it is possible to claim RGR and move between territories without paying again ... if this can be done multiple times back and forwards, who knows .... it would be pretty impractical to claim RGR for every trip across the channel though.

I used to have my boat under temporary import in Croatia to avoid paying VAT. I was unable to visit any EU country at the time because VAT and import duty would have become due as I am an EU citizen. Croatia was outside the EU at the time. Temporary import is much simpler than RGR and taking a day out every 18 months to reset the clock is not that demanding.
 
The seriously unfair part of this is that governments will remove VAT paid status without refunding the VAT!
 
There do seem many possible barriers as a result of brexit. Whether their management at modest cost is possible perhaps the main point of interest.

I don't think any EU country will want to deter people travelling and spending time and money.
90 day rules can be overcome by a visa and the charges for a visa could be small or zero. UK citizens living (or taking an extended holiday) in France and Spain , for example, are not going to be thrown out of the country as they are surely a welcome part of the economy.

As far as paying vat is concerned and the three year rule it seems necessary only for the boat to leave the country and return again for a new three year period to start . Or am I missing something?
 
maby said:
The seriously unfair part of this is that governments will remove VAT paid status without refunding the VAT!
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+1
I agree.
My boat is VAT paid in France. When I paid that VAT it was on the understanding it gave me vat paid status in all the 28 countries. OK the 28 becomes 27 so there are changes to the laws and rules. Why should those changes be retrospective. When the civil or criminal law is amended in any country, they don't go back in time and prosecute according to the new laws. When tax laws are changed, they don't go back to previous years and recalculate tax owed.
Why are we accepting that they can do it to vat status.
 
GTom said:
I know it is still mostly guesswork as we still don't know if brexit is actually happening or not: got to wait until 32 January or even longer...

Many topics are discussing how to keep the EU VAT paid status (spend B-Day/Night in a French/Irish marina), that part is more or less clear. However, what happens afterwards? How long can you keep an EU VAT paid boat in the UK? What if you move your residency to the EU in the meantime?
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Why not write to your MP they might be able to get an answer for you in about five years time.
 
MartynG said:
There do seem many possible barriers as a result of brexit. Whether their management at modest cost is possible perhaps the main point of interest.

I don't think any EU country will want to deter people travelling and spending time and money.
90 day rules can be overcome by a visa and the charges for a visa could be small or zero. UK citizens living (or taking an extended holiday) in France and Spain , for example, are not going to be thrown out of the country as they are surely a welcome part of the economy.

As far as paying vat is concerned and the three year rule it seems necessary only for the boat to leave the country and return again for a new three year period to start . Or am I missing something?
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France offers a long-term visitor visa for a period of up to one year. The application process takes up to one month. According to the French Embassy, “The ‘visitor’ visa (or visa ‘D’) allows you to enter France and stay for more than three months. Long-stay visa holders will be allowed to reside in France for up to 12 months according to the validity of their visa and purpose of stay.”

To get this visa, you must set up an appointment at the French consulate near you. You can’t walk in — you must make an appointment.

At this appointment, bring the following documents:
  • One application form filled out completely and signed
  • One ID picture glued onto the application form
  • Your original passport, which must have been issued less than 10 years ago, be valid for three months after your return, and have at least two blank pages left
  • A letter certified by a notary public that promises you won’t engage in work
  • A letter of employment stating current occupation and earnings
  • Proof of income (you’ll need bank statements or copies of your investment portfolio)
  • Proof of medical insurance that includes evacuation insurance
  • Proof of accommodation in France. (The French consulate never returned my emails, so I was unsure how you could have this before you even get to France. One could use a friend’s address or, lacking that, “rent” a place (one where you can get a refund) for the purposes of the interview. It’s a little fuzzy.)
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Your Guide to (Legally) Staying in Europe for More Than 90 Days

So basically, there are EU countries, like France, that will allow stays longer than the schengen 90 day limit. They are not that easy to come by, and they are only valid for that one EU country - but you do get a multiple entry schengen visa as a consequence which allows 90 days in other EU countries.

As the Brexiteers kept telling everyone "people used to travel and work in foreign countries before the EU" ... and they were right, but they glossed over the rules and regulations governing that travel and work. Rules which disappeared with EU free movement. This is simply a consequence of Brexit dictated by the governments red lines on free movement, we'll just have to learn to live with these restrictions again.

France attracts almost 200M tourists a year, 13M come from the UK - I can't imagine why, instead of simply switching the UK to RoW rules, they would spend time negotiating special terms for UK tourists, let alone UK tourists who come to France in their own yachts.

PS: If you read the link above, there is some interesting information about US citizens and a pre-schengen "special arrangement" allowing US citizens longer than a 90 day stay in France. The blogger chased the legal implications of trying to use this agreement to stay in France, but discovered it would be very unlikely to work in practice. We can hope that France might offer the UK such a deal, but don't hold your breath.
 
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