Selling a UK yacht to a Swedish resident. VAT

[Neil_Y]

I've probably answered this myself from limited research but wondered if anyone had come across the situiation.

In the past before #Brexit we could sell a yacht to anyone in any other EU country and as long as VAT paid status was proved or assumed there would be not VAT to pay by the new owner in this case in Sweden, but now that UK yachts EU VAT status is kind of void since we are outside EU (like Norway) any yacht moved from UK to Sweden will have to pay Swedish VAT at 25%. It looks like the value of yachts from UK will be reduced. Is that what other think? Thanks Neil

 

[westernman]

I've probably answered this myself from limited research but wondered if anyone had come across the situiation.

In the past before #Brexit we could sell a yacht to anyone in any other EU country and as long as VAT paid status was proved or assumed there would be not VAT to pay by the new owner in this case in Sweden, but now that UK yachts EU VAT status is kind of void since we are outside EU (like Norway) any yacht moved from UK to Sweden will have to pay Swedish VAT at 25%. It looks like the value of yachts from UK will be reduced. Is that what other think? Thanks Neil

We are not like Norway. Norway is in the EEA. i.e. for VAT Norway is effectively in the EU.

 

[Frogmogman]

I've probably answered this myself from limited research but wondered if anyone had come across the situiation.

In the past before #Brexit we could sell a yacht to anyone in any other EU country and as long as VAT paid status was proved or assumed there would be not VAT to pay by the new owner in this case in Sweden, but now that UK yachts EU VAT status is kind of void since we are outside EU (like Norway) any yacht moved from UK to Sweden will have to pay Swedish VAT at 25%. It looks like the value of yachts from UK will be reduced. Is that what other think? Thanks Neil

Up to a point.

The VAT status depends on the location of the boat in question at the moment the UK exited the EU.

Thus, a UK flagged and UK VAT paid yacht that was in the EU at that point would be deemed to be EU VAT paid, so could be sold to a buyer in Sweden without any VAT liability. If it was in the UK at that moment, then VAT would be due in the case of such a sale.

The subject has already been gone into at some depth on his forum, if you’d care to have a trawl about.

 

[westernman]

We are not like Norway. Norway is in the EEA. i.e. for VAT Norway is effectively in the EU.

Except for boats it seems!

 

[roblpm]

We are not like Norway. Norway is in the EEA. i.e. for VAT Norway is effectively in the EU.

I think this is wrong. Norway is in the EEA but not in the Customs Union? Being in the EEA has nothing to do with Vat. I think. Maybe. I think it is membership of the Customs Union that decides that. And that is a separate thing. I think. Maybe.

 

[dunedin]

I've probably answered this myself from limited research but wondered if anyone had come across the situiation.

In the past before #Brexit we could sell a yacht to anyone in any other EU country and as long as VAT paid status was proved or assumed there would be not VAT to pay by the new owner in this case in Sweden, but now that UK yachts EU VAT status is kind of void since we are outside EU (like Norway) any yacht moved from UK to Sweden will have to pay Swedish VAT at 25%. It looks like the value of yachts from UK will be reduced. Is that what other think? Thanks Neil

Broadly, correct yes. The gift that keeps on ….. causing problems.

 

[Neil_Y]

Thanks for the input, I've searched on here but the search function seems worse than google at coming up with unrelated content.

Sadly I missed out on a nice yacht that was in Norway, but I would have been liable for 25% VAT bringing that into EU...so now searching for boats that are in EU. And now it seems Sweden don't recognise commercial yachtmaster as a qualification to skipper Swedish registered small sailing vessels for reward, but I don't think that had anything to do with Brexit.

 

[Frogmogman]

I don’t know that I necessarily agree with your conclusion on the effect this will have on the value of boats in the UK market.

Yes, it will make UK brokerage boats less attractive to buyers from the EU, but the opposite also applies, and as the EU market is rather larger than the UK (particularly for AWB’s, I’d imagine), UK based buyers will have less choice in what’s available, which may tend to push prices up.

Certainly, the surge in the prices UK buyers seemed prepared to pay for second hand boats last year did not seem to be as marked on the Continent.

 

[westernman]

I think this is wrong. Norway is in the EEA but not in the Customs Union? Being in the EEA has nothing to do with Vat. I think. Maybe. I think it is membership of the Customs Union that decides that. And that is a separate thing. I think. Maybe.

I think I was wrong too.
But the UK is not like Norway anyway!

 

[lustyd]

Also worth noting that UK to EU requires RCD recertification. EU to UK does not currently need RCR certification if the boat has RCD.

 

[BabaYaga]

I've probably answered this myself from limited research but wondered if anyone had come across the situiation.

In the past before #Brexit we could sell a yacht to anyone in any other EU country and as long as VAT paid status was proved or assumed there would be not VAT to pay by the new owner in this case in Sweden, but now that UK yachts EU VAT status is kind of void since we are outside EU (like Norway) any yacht moved from UK to Sweden will have to pay Swedish VAT at 25%. It looks like the value of yachts from UK will be reduced. Is that what other think? Thanks Neil

It looks like the determining factor for whether a Swedish importer (buyer) will have to pay VAT on a used boat is whether the boat is sold from a country/territory inside or outside EUs fiscal territory. This is from Swedish Customs web site:
Buying or selling boats across Sweden’s border

Northern Ireland might possibly be a loophole from UKs perspective, at least this list (from Finnish Customs) includes NI in EUs fiscal territory (concerning goods):
EU's customs and fiscal territory - Finnish Customs

 

[ashtead]

Does this mean that boats in Northern Ireland will still be attractive to Irish buyers and vice versa?

 

[roblpm]

Does this mean that boats in Northern Ireland will still be attractive to Irish buyers and vice versa?

I think I saw somewhere this might be a loophole if you are brave enough to try it. But a boat in the EU and park it in NI for a couple of years. Then move to the UK. I think nobody knows what will happen! ?

 

[oldgit]

Does this mean that boats in Northern Ireland will still be attractive to Irish buyers and vice versa?

Taking Back Control ?
Chum had actutally sold his UK based motor boat to buyer from Eire.
Sale later collapsed due to the fact that the buyer would have to pay an additional 20% import tax on top of the purchase price , imposed on all transactions of this type after BREXIT.
On the boat concerned this would have amounted to a whopping £15.000 pounds extra .

At the moment looking round for a 40ft UK motorboat to replace my existing boat.
Nothing on the UK market in the price range or size that am looking for.
Decent choice in EU locations but 20% tax to get the boat back to UK.

 

[ashtead]

Would a boat in Northern Ireland still be considered to be in the UK though ?

 

[oldgit]

Would a boat in Northern Ireland still be considered to be in the UK though ?

Apparently Yes.
Suggestions of shipping boat to NI somewhere close to the border and then nipping south one dark and stormy night or berthing the boat in a NI marina.
Lunacy ?