Graham376
Well-Known Member
OK then, hypothetically, what would be the position if you or I chartered a boat in say France and visited the UK in it? Surely, we wouldn't have a VAT liability on a boat not owned by us.
VAT a thorn in buying
- Thread starter Flyer295
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OK then, hypothetically, what would be the position if you or I chartered a boat in say France and visited the UK in it? Surely, we wouldn't have a VAT liability on a boat not owned by us.
WindyWindyWindy
Well-Known Member
Well yes, it would certainly look like an avoidance scheme because that's what it is.
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wonkywinch
Well-Known Member
Graham376
Well-Known Member
I think that HMRC might chicken out if you contested it
Don't count on it. We had an in-depth VAT inspection when in business and they don't mess around. They're more interested in collecting even a small amount of money than the cost of the investigation.
westernman
Well-Known Member
No problem. No issues. No VAT to pay.
However, if it is not a bonafide charter company, or you are the owner of the company or it is a company registered in a tax haven, then expect to get thoroughly grilled.
westernman
Well-Known Member
If they think there is any kind of avoidance going on they will follow through to the end. And they now have the catch all legislation to get you.I think that HMRC might chicken out if you contested it
Uricanejack
Well-Known Member
Tax avoidance legal
Tax evasion not legal you could get fined or even go to jail.
So if you find an acceptable avoidance scam why not?
HMCR didn’t have a problem with all the rich Russians until the recent unpleasantness in Ukrain
Tax evasion not legal you could get fined or even go to jail.
So if you find an acceptable avoidance scam why not?
HMCR didn’t have a problem with all the rich Russians until the recent unpleasantness in Ukrain
Uricanejack
Well-Known Member
Hypothetically
Joe Blow bus a typical uk boat in the Uk back in 80s or 90 s. Pays vat and sails round Solent ect for a few years.
Decided to explorer further and heads for med or Caribbean ect.
Joe gets old
Decides to sell boat where it is.
boat is Uk VAT paid or was.
if joe returns boat to Uk to sell is VAT paid.
surely it must be.
If joe sells while offshore why would VAT be now required. If already paid.
I realise the complicated bollocks round EU would change status of a boat which was EU VAT paid. Now not having this carried over even if this does seam to be a bit unfair for a pre existing boat at time of brexit.
Joe Blow bus a typical uk boat in the Uk back in 80s or 90 s. Pays vat and sails round Solent ect for a few years.
Decided to explorer further and heads for med or Caribbean ect.
Joe gets old
Decides to sell boat where it is.
boat is Uk VAT paid or was.
if joe returns boat to Uk to sell is VAT paid.
surely it must be.
If joe sells while offshore why would VAT be now required. If already paid.
I realise the complicated bollocks round EU would change status of a boat which was EU VAT paid. Now not having this carried over even if this does seam to be a bit unfair for a pre existing boat at time of brexit.
WindyWindyWindy
Well-Known Member
It'd be registered in the EU and only briefly in the UK. I don't see why it would attract much interest.
Lots of boats are owned by companies. There are also atypical charter arrangements, shared ownership or clubs could be organised that way.
westernman
Well-Known Member
Yes. Mostly for valid reasons. But if you try to do something purely for the purpose of avoidance of the VAT you will fall foul of the new tax avoidance rules which refer to the spirit of the law. I.e. just respecting the letter of the law is no longer sufficient.
Before trying to scam the VAT make sure you have read the documents here (I have, I was looking for a loop hole like you, but these new rules pretty much sew it up):-
Tax avoidance: general anti-abuse rule guidance - latest version
WindyWindyWindy
Well-Known Member
To be clear, I'm not looking for any loopholes, the op is.
Niall Reid
New Member
Good Afternoon,
I have been reading the various threads on VAT Status, and haven't yet found the answer, and hoping due to the nature of this thread someone can help.
I am about to purchase a yacht in Mallorca, it is non EU Vat Paid, and I don't intend to pay the VAT, and I will plan to take the boat out to a Non EU Country less than every 18 months to export, then re-import the yacht.
The broker advises me as the yacht is owned by a non EU resident, and its non VAT Paid we will have to complete the transaction 12 miles offshore. That's the easy part.
What I am then unclear on is can I sail back to Mallorca, or do I then have to sail straight to a non -EU Country get a stamp and then sail back. I guess my question is does the EU 18 Month Temporary Importation stay with the yacht or with the owner/yacht combination.
I am a UK Resident and fully aware of my limitations with the 90/180 rule.
Thanks in advance
I have been reading the various threads on VAT Status, and haven't yet found the answer, and hoping due to the nature of this thread someone can help.
I am about to purchase a yacht in Mallorca, it is non EU Vat Paid, and I don't intend to pay the VAT, and I will plan to take the boat out to a Non EU Country less than every 18 months to export, then re-import the yacht.
The broker advises me as the yacht is owned by a non EU resident, and its non VAT Paid we will have to complete the transaction 12 miles offshore. That's the easy part.
What I am then unclear on is can I sail back to Mallorca, or do I then have to sail straight to a non -EU Country get a stamp and then sail back. I guess my question is does the EU 18 Month Temporary Importation stay with the yacht or with the owner/yacht combination.
I am a UK Resident and fully aware of my limitations with the 90/180 rule.
Thanks in advance
Graham376
Well-Known Member
Generally, it's the goods which attract VAT if they're within the EU for >18 months for non-residents and presumably, you have checked the boat won't have exceeded this at the time of purchase? Bear in mind if you visit anywhere, the registration should be in your name and that can't be changed 12 miles offshore.
Tranona
Well-Known Member
Management of this process is at a state level - there are no EU wide "rules". So you (or the broker) need to clarify with the local customs what their requirements are. For example in Greece such transactions can take place with the boat on customs bond. in Italy as i understand it you notify customs that the boat changed hands outside territorial waters and it re-enters under the new ownership to start a new 18 months cycle.
WindyWindyWindy
Well-Known Member
To do it properly you'll have to have cleared out of the EU or the passport records will show that you were in the EU at the time of the transaction.
My boat is owned by my company, so in the company's name (legitimately and EU VAT paid) and I don't have any problems visiting places.
Graham376
Well-Known Member
That's a different situation. A mate bought a Spanish registered boat in February and the registration has still not been cancelled so he can't register it anywhere and insurance has been refused until it's registered somewhere in his name. As far as his paperwork is concerned, it's still registered to the seller.
dunedin
Well-Known Member
What is the company’s main line of business ?
I believe company ownership of a boat can open up a new set of can of worms -
- if the boat is (perceived as) running as a business then can be lots of extra rules over what can and cannot be done (eg charter), boat equipment and certification, skipper certification etc
- if the boat is not trading as a business, with realistic income and costs, it can be deemed an avoidance scheme
WindyWindyWindy
Well-Known Member
.