VAT and my summer holidays

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arripay

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We're buying a new Swedish boat with a delivery date in May. We had hoped to spend a few months sailing the Baltic before returning to UK waters in August/Sept. However as far as I can tell we have to be back home within 2 months of taking delivery in order to pay UK VAT otherwise we end up paying VAT in Sweden (25%!).

Do we have to curtail our summer cruising plans or is there another way?
 
Investigate whether you can pay the VAT in any EU country, or are restricted to just Sweden or the UK. You might be able to pay in Germany, Poland etc, and even find a cheaper rate. Would it matter to you if you had to register the boat in one of the Baltic countries rather than the UK, in order to pay the VAT there? (You might need to be a local resident, or get the help of one, in order to do it)
 
My last but one boat was built in UK, bought by a Dutchman through the Channel Islands, British registered, kept in France and VAT paid in Spain (16%). It had never visited Spain.

Perhaps you can pay VAT in the country of your choice?
 
I'm open to learn from your experience but my understanding is that once the 2 month period of grace is over, you pay VAT in the first EU country you make landfall, unless 'in transit'. I thought to be considered 'in transit' you would have to heading for your EU country of residence.
From RYA:
NEW BOATS:
Boats bought new and within the EU pay VAT at the country of
destination not the country of purchase, provided that the boat is to
be moved to another EU state within 2 months of supply.
 
[ QUOTE ]
NEW BOATS:
Boats bought new and within the EU pay VAT at the country of destination not the country of purchase, provided that the boat is to be moved to another EU state within 2 months of supply.

[/ QUOTE ]
That sounds ambiguous. Does it have to leave within 2 months or arrive within 2 months?

I can only cite the one example I know. VAT was paid in Spain on an assessed value when it was 11 months old. It was bought through a Channel Islands company, kept in France and had never been to Spain. All legal and above board. Maybe the difference was that it was first purchased outside the EU.
 
Thanks for all the tips!

I thought about paying in Germany but I understand their rate will go upto 19% from January. Which leaves the UK with the third lowest rate (Spain 16%, Luxemburg 15%).
 
Try sailing it to Luxemburg in time /forums/images/graemlins/smirk.gif
 
[ QUOTE ]
Which leaves the UK with the third lowest rate (Spain 16%, Luxemburg 15%).

[/ QUOTE ]
Just give Gordon Brown a bit longer, he won't like coming third.
 
If you do pay the VAT in another EU country, there are limits as to when the boat can be brought back into the UK. Have a read of V17.

Rick
 
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