Selling a yacht post Brexit - UK or within EU

[PaulReds]

Hi
We have a yacht which we plan to sell in 12-18 months. VAT was paid on her original purchase when new - 25+ years ago. She is currently in the Canaries and we plan to sail her back to mainland Europe and perhaps to the UK.

I know we don't yet know how Brexit will pan out but is it likely to better for her to be based within the EU or in the UK. This obviously depends on who purchases her, but the larger market is in the EU. So if back in the UK there could conceivably be duty if she was imported into the EU.

Any views? Please do not turn this into a Brexit discussion!

Thanks

 

[RupertW]

Hi
We have a yacht which we plan to sell in 12-18 months. VAT was paid on her original purchase when new - 25+ years ago. She is currently in the Canaries and we plan to sail her back to mainland Europe and perhaps to the UK.

I know we don't yet know how Brexit will pan out but is it likely to better for her to be based within the EU or in the UK. This obviously depends on who purchases her, but the larger market is in the EU. So if back in the UK there could conceivably be duty if she was imported into the EU.

Any views? Please do not turn this into a Brexit discussion!

Thanks

The EU commission advice as interpreted by the Cruising Association says that in the event of a no deal every EU VAT paid boat will become UK only VAT on Brexit day if it is physically in the UK regardless of what flag it has, the nationality of owners or where the VAT was paid. If it’s in the EU it will be EU VAT but not UK paid.

If it’s in the Canaries (as ours is now) we are expecting it to be counted as EU VAT still.

 

[scotty123]

Hi
We have a yacht which we plan to sell in 12-18 months. VAT was paid on her original purchase when new - 25+ years ago. She is currently in the Canaries and we plan to sail her back to mainland Europe and perhaps to the UK.

I know we don't yet know how Brexit will pan out but is it likely to better for her to be based within the EU or in the UK. This obviously depends on who purchases her, but the larger market is in the EU. So if back in the UK there could conceivably be duty if she was imported into the EU.

Any views? Please do not turn this into a Brexit discussion!

Thanks

Where can you get the best price, is the only consideration when selling anything, a boat is no different

 

[dunedin]

What type of boat? For example, a U.K. built boat like Westerly or Moody etc likely to find most buyers in the U.K.
Many more specialist boats like an Amel, an Arcona or X Yacht, and any catamaran more likely in rest of Europe.
Lots of variants in between.

Location on Brexit day seems to be the key thing for VAT status. Sounds like unlikely to be in U.K. on B-day, so if still in EU will retain EU Goods status

 

[JumbleDuck]

The EU commission advice as interpreted by the Cruising Association says that in the event of a no deal every EU VAT paid boat will become UK only VAT on Brexit day if it is physically in the UK regardless of what flag it has, the nationality of owners or where the VAT was paid. If it’s in the EU it will be EU VAT but not UK paid.

Why would the EU Commission have any say over UK VAT paid status?

 

[Graham376]

The EU commission advice as interpreted by the Cruising Association says that in the event of a no deal every EU VAT paid boat will become UK only VAT on Brexit day if it is physically in the UK regardless of what flag it has, the nationality of owners or where the VAT was paid. If it’s in the EU it will be EU VAT but not UK paid.

If it’s in the Canaries (as ours is now) we are expecting it to be counted as EU VAT still.

If it returns to the UK after Brexit under the same ownership, it will retain its UK VAT status as well as EU status but, one or the other will cease, depending on where it's sold.

 

[sailaboutvic]

If it was me I would be looking at having the boat in the EU , if by any chance you found a buyer in the UK that wanted to keep the boat in the UK then do the deal in the UK .
In this way your covered both ways .
By what is being said it more the EU your going to have a problem with then the UK , who not that interested in VAT boats .
You could also keep it n the EU on B day , get the prove you need then take it to the UK ?

 

[sailaboutvic]

If it returns to the UK after Brexit under the same ownership, it will retain its UK VAT status as well as EU status but, one or the other will cease, depending on where it's sold.

This arguement been going about for some time , unless it's sold through a broker , who to say where the boat was sold ?

 

[PaulReds]

Good thoughts everyone.
She is a Hallberg Rassy 36 - so widely owned across Europe including the UK.
I think the VAT may sort itself out. I wonder if I should be more concerned about tariffs - for example if I am importing from the UK into Europe or vice versa. This if course depends on what deal if any is done.

 

[[70521]]

An EU national who had his boat in the same marina has moved his boat to the EU zone before B-Day, sounds a logical move now I read this.

 

[Graham376]

This arguement been going about for some time , unless it's sold through a broker , who to say where the boat was sold ?

I would suggest the boat will be sold wherever the paperwork says it is at the time

 

[sailaboutvic]

I would suggest the boat will be sold wherever the paperwork says it is at the time

What paper work ? Last boat I sold was in Greece , there was no paper trail to say it was sold in Greece , the bill of sale had nothing on it .
, I brought the boat I have now a year earlier in Croatia privately again nothing to say what country I brought it from ,
If you sell a boat through a broker then they may be a statement of account and that may give some idea what country it was sold in but only to the seller , even then I don't think the buyer would have any thing .
If one of the brokers here like to correct me please do , best to get the right info out .

 

[dunedin]

This arguement been going about for some time , unless it's sold through a broker , who to say where the boat was sold ?

I suspect many/most buyers would be more cautious / risk averse. If they are not confident that they will avoid future VAT issues they are likely to simply offer the OP 20% less for the boat, to mitigate their risk.
No incentive for the buyer to play games with fictional sale “location”.

 

[sailaboutvic]

I suspect many/most buyers would be more cautious / risk averse. If they are not confident that they will avoid future VAT issues they are likely to simply offer the OP 20% less for the boat, to mitigate their risk.
No incentive for the buyer to play games with fictional sale “location”.

I not suggestion playing any games , the point I making there is no record where a boat is sold , in other word I could buy your boat in France take it back to the UK and no one any wiser where I brought it from or would there be any record to show it was sold out of the Uk so UK vat would be valued .
Same apply if a boat say was in the EU on B day so prove of EU vat status is up held then for some reason it's taken back to the UK and at a later date it's sold and taken back into the EU there no record .
As for any precent held back from purchase price , my Guess is if someone try that the seller would just wait till he got a buyer that wanted to keep the boat in the country it's sold in .
Any way all these posting are a waste of time as no one knows what's going to happen until it happen then if the boat is is in wrong country , it be too late to do any thing .

Here a fact , forget what someone going to post after reading this comment , in all the years I cruised the EU and people we met ( each winter any thing for 50 to 150) I never met one person who said they been asked to show VAT prove ,
As for myself I only been ask for reg, insurance, passport , crew list and last year my Skipper license in Greece .
I don't think that's going to change .