The 18 Month Rule

[Ian_Rob]

Another query:

I understand that that if ones boat is taken out of commission and the fact advised to the custom authorities, then the 18 month clock stops running.

What constitutes ‘out of commission’?

In the UK, any boat ashore is regarded as being ‘out of commission’ for insurance purposes. Would it be so for VAT purposes if ashore in the EU with (or without) its mast down?

 

[Irish Rover]

Another query:

I understand that that if ones boat is taken out of commission and the fact advised to the custom authorities, then the 18 month clock stops running.

What constitutes ‘out of commission’?

In the UK, any boat ashore is regarded as being ‘out of commission’ for insurance purposes. Would it be so for VAT purposes if ashore in the EU with (or without) its mast down?

My experience from a few years ago was that the boat had to be on the hard in a recognised marina or boatyard and the boat papers along with a certificate from the boatyard had to be lodged with customs. However I don't know if that was actually specified in the regulations or was just the local [Preveza] customs office interpretation of the regulations.

 

[Deleted member 36384]

As an aside and for no other reason than trying to understand all this better, isn’t it the case that boats brought into the EU under the 18th month rule aren’t actually allowed to be chartered??

Indeed, you are correct, according to Noonsite.

From Noonsite European Union | Noonsite

Yachts may be temporarily imported for private use only. Under temporary importation, a yacht may not be hired, sold or lent to a resident of the EU. Immediate relatives of the owner may use the boat if they are resident outside of the EU. The boat may be used occasionally by an EU resident, when acting on behalf of the owner and when the owner is himself/herself in the EU.

And extension beyond 18 months: -

Can the 18 months be extended if the yacht is not used? You may want to go home for Christmas!

Yes, as noted above, the eighteen month period may be extended for the time during which the yacht is not used. The EU Customs Code allows for this. However, the maximum overall period during which the yacht can remain in the EU is 24 months.

 

[Ian_Rob]

From Noonsite European Union | Noonsite

…… a very informative link. Thank you.

 

[st599]

I think that the EU will eventually realise that it is actually to their financial advantage to extend both the 18th month rule and the 90/180 day rule.

The EU offered to extend the 90/180 rule to 6 months if the UK reciprocated for all EU citizens - the UK turned them down (It was mentioned in a Commons committee by, I think, Letwin).

Although we do offer 6 months for the richer EU states, the ball is in UK's court on this one.

If not individual states breaking ranks ?

They've all signed up to the centralised Schengen Information System database which automates the process from next year. Flagging illegal immigrants such as those overstaying a visa waiver will be part of that.

 

[Ian_Rob]

The EU offered to extend the 90/180 rule to 6 months if the UK reciprocated for all EU citizens - the UK turned them down (It was mentioned in a Commons committee by, I think, Letwin).

Although we do offer 6 months for the richer EU states, the ball is in UK's court on this one.

That’s all interesting. I seem to recall that 6 months was on the table but I hadn’t realised that it was the UK governments refusal to enter into a reciprocal agreement that was the sticking point. I can’t see the current government relenting so perhaps it won’t happen any time soon.

 

[coopec]

Has this article got anything to do with avoiding VAT?

Brexit: As an EU sailor, what do I need to do if cruising to the UK? - Yachting Monthly

 

[Tranona]

Only picks little bits of the new arrangements which cover not only the rules on boats and VAT but movement of people and entry procedures going in and out of the EU or UK from the perspective of both EU and UK residents or citizens.

Lots to digest, some of it still unclear or procedures either not fully in place, plus the usual problem with EU legislation how each state (or even officials within a state) will actually enforce it. With the people part new systems are being implemented to monitor entry and exit to Schengen countries centrally, but boat movement will still be monitored at state level, hence the discussion here looking for experience of how it has worked in the past. before UK became a third country.

 

[IamDiscoDad]

I beleive now we are in 2024 there might be some people that have taken advance of this?
Seem like going to Gibraltar for 24 hours, and getting arrival / departing documentation would restart the 18m clock. Seems like fun, and a reasonable saving (for someone who is in the process of buying a boat, looking to cruise the med).

 

[Graham376]

I beleive now we are in 2024 there might be some people that have taken advance of this?
Seem like going to Gibraltar for 24 hours, and getting arrival / departing documentation would restart the 18m clock. Seems like fun, and a reasonable saving (for someone who is in the process of buying a boat, looking to cruise the med).

Gib is likely joining the Schengen area so no use then as a bolthole but Smir, not far away, would work. Don't forget the crew are subject to 90 days in 180 in Schengen which will become more of a problem with EES, due to be launched in November.

 

[Sea Change]

Gib is likely joining the Schengen area so no use then as a bolthole but Smir, not far away, would work. Don't forget the crew are subject to 90 days in 180 in Schengen which will become more of a problem with EES, due to be launched in November.

When are Gib due to join? It's been in the works for years now.

 

[Openelectron]

This thread resurfacing is perfect timing for me.
Looking at taking my UK based boat to Sweden next summer. Does anyone know if a visit to Norway would be sufficient to reset the 18 month clock?

 

[Graham376]

When are Gib due to join? It's been in the works for years now.

Your guess is as good as mine, control of the airport seems to be the sticky point.

 

[Graham376]

This thread resurfacing is perfect timing for me.
Looking at taking my UK based boat to Sweden next summer. Does anyone know if a visit to Norway would be sufficient to reset the 18 month clock?

I can't see why not, although a member of the EEA, Norway isn't in the EU Customs Union.

 

[IamDiscoDad]

I was in Gib 2 weeks ago, and word on the street (from like 1 or 2 people) was that Schengen related to making the border crossing easier, and that tax rules wouldn't change...
Although it would potentially count as part of the 90/180 for travel.

 

[Tranona]

This thread resurfacing is perfect timing for me.
Looking at taking my UK based boat to Sweden next summer. Does anyone know if a visit to Norway would be sufficient to reset the 18 month clock?

The management of TA is at state , and often local level. The directive does not say anything specific about what constitutes leaving the EU. So best to check with customs at the points of entry and departure.

 

[Refueler]

Ships have been doing it for years to break customs seals on Bonded Stores .... as long as there is a track recorded on plotter and a Log Book entry showing crossing into International Waters or non EU - this was always sufficient for Customs and Excise ....

We did it so often when on seismic .. we even had charts marked for it to do it as economically as possible.

Of course if you visit a marina or harbour and have a receipt etc - then great. But technically International waters will break the chain. If you can show Force Majeure or other emergency reason for return into EU / national before 24hrs ... then its usually accepted.

 

[dunedin]

Gib is likely joining the Schengen area so no use then as a bolthole but Smir, not far away, would work. Don't forget the crew are subject to 90 days in 180 in Schengen which will become more of a problem with EES, due to be launched in November.

Shengen applies to people not boats, so irrelevant for questions about 18 month VAT rule.