Etoilebrilliant
New Member
Hi.
Long time lurker. First time poster.
Buying 4 year RIB in CI from sister. No VAT has been paid. I'm a Englishman living in Sweden where RIB will be registered.
Option A: transport RIB and trailer to UK South Coast, get HMRC transit document, ferry RIB and trailer to Sweden (via Denmark) where 25% VAT will be paid on purchase price/book value.
Option B: import RIB and trailer to UK pay 20% VAT to HMRC. Take RIB and trailer to to Sweden (via Denmark).
At first glance it would seem a no brainer in favour of option B based on the VAT arbitrage (5%) between Sweden and the UK. But here are some questions. Excuse my naivety on the subject.
1: Shipping agent suggests that it is much better to sail to UK by RIB and buy a trailer there. I'm on tricky ground here but, he suggests, when a trailered boat is imported, the total valie of the trailer and RIB attracts an additional duty of 15% as it is classified as a vehicle. Whilst I understand the principle, is the agent correct? Moreover, my investigations with the Swedish Tax Authorties suggest no such approach exists in Sweden!!!
2. If I go for Option A, I will need to post a 20% deposit with HMRC until prove is received that the RIB has been "duty paid" in Sweden. As I will be transiting through Denmark as well, will they require a further 25% until they receive confirmation of "duty paid"? How will the HMRC receive notification from the Swedish tax authorities that all is order and my cheque can be ripped up?
3. I speak from experience of importing cars from the US. If a vehicle is imported into a EEA member state, it can not be re-registered in another EEA member state until at least (i) 6 months and (ii) 10,000 km. This is to avoid VAT arbitrage between member states. Do similar rules apply for (a) boats and (b) are they applicable for 4 year old RIBS.
Many thanks in advance from what I know to be a very knowledgeable forum
Long time lurker. First time poster.
Buying 4 year RIB in CI from sister. No VAT has been paid. I'm a Englishman living in Sweden where RIB will be registered.
Option A: transport RIB and trailer to UK South Coast, get HMRC transit document, ferry RIB and trailer to Sweden (via Denmark) where 25% VAT will be paid on purchase price/book value.
Option B: import RIB and trailer to UK pay 20% VAT to HMRC. Take RIB and trailer to to Sweden (via Denmark).
At first glance it would seem a no brainer in favour of option B based on the VAT arbitrage (5%) between Sweden and the UK. But here are some questions. Excuse my naivety on the subject.
1: Shipping agent suggests that it is much better to sail to UK by RIB and buy a trailer there. I'm on tricky ground here but, he suggests, when a trailered boat is imported, the total valie of the trailer and RIB attracts an additional duty of 15% as it is classified as a vehicle. Whilst I understand the principle, is the agent correct? Moreover, my investigations with the Swedish Tax Authorties suggest no such approach exists in Sweden!!!
2. If I go for Option A, I will need to post a 20% deposit with HMRC until prove is received that the RIB has been "duty paid" in Sweden. As I will be transiting through Denmark as well, will they require a further 25% until they receive confirmation of "duty paid"? How will the HMRC receive notification from the Swedish tax authorities that all is order and my cheque can be ripped up?
3. I speak from experience of importing cars from the US. If a vehicle is imported into a EEA member state, it can not be re-registered in another EEA member state until at least (i) 6 months and (ii) 10,000 km. This is to avoid VAT arbitrage between member states. Do similar rules apply for (a) boats and (b) are they applicable for 4 year old RIBS.
Many thanks in advance from what I know to be a very knowledgeable forum