Sahula
New Member
Can anyone advise whether the Channel Islands and Norway provide a means to extend the 18 month period for VAT on a foreign yacht. If so what time is required to stay in the place and what procedures?
VAT Europe
- Thread starter Sahula
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Tranona
Well-Known Member
Neither Norway nor Channel Islands are in the EU, so your question is irrelevant. There are restrictions in Norway but the rules have just been changed so you need to ask the Norwegian authorities.
As far as I know there are no restrictions on leaving your boat in the Channel Islands - but delightful though they are, not somewhere that you would want to spend a lot of time.. The "18 months" applies to the EU and you can get temporary importation in any country. Extending is usually not a big issue - you can always leave the EU and re-enter with another exemption period.
As far as I know there are no restrictions on leaving your boat in the Channel Islands - but delightful though they are, not somewhere that you would want to spend a lot of time.. The "18 months" applies to the EU and you can get temporary importation in any country. Extending is usually not a big issue - you can always leave the EU and re-enter with another exemption period.
Ludd
Well-Known Member
Not sure if there is a specific length of time to be spent outside EU before a new "VAT exempt" period can begin. After 6 months (I think that's the normal limit of exemption) in EU waters ,you could apply for an extension,as Tranona says,but could be wise to plan a bolthole if refused.Norway would be fine ,and if you made it summertime,sheer magic.
truscott
Well-Known Member
Went on a Sunsail two countries flotilla a few years back. Some of the yachts in the flotilla were Channel Islands registered. Does their 18 month EU period get reset every time a charterer sails to Greece from Turkey, or has the clock been running since the first entry?
We have been under the impression that the period resets when you leave the EU and as our boat is based in Turkey, we felt that this would give us lots of leeway in cruising the Eastern Med.
Interested to see if this is the common perception or not.
Cheers, PT.
We have been under the impression that the period resets when you leave the EU and as our boat is based in Turkey, we felt that this would give us lots of leeway in cruising the Eastern Med.
Interested to see if this is the common perception or not.
Cheers, PT.
Magnum
RIP
Yes they do. All that is required is to leave EU waters before the 18 month Temporary Importation (TI) limit is reached. Both the CI and Norway are outside the EU and there is no minimum period you must remain outside the EU. Just proof that you have done so - overnight mooring fee andvfuel receipts - is sufficient.
jimbaerselman
Well-Known Member
I am unsure about using Norway as a non-EU haven. Norway is a member of the Schengen area, and therefore has open borders with much of the EU, even though it is not a member. I would recommend asking HMRC views on this beforehand. They are very helpful.
Start by looking up this document:
http://customs.hmrc.gov.uk/channels...id=HMCE_CL_000289&propertyType=document#P7_90
Start by looking up this document:
http://customs.hmrc.gov.uk/channels...id=HMCE_CL_000289&propertyType=document#P7_90
Magnum
RIP
Switzerland has joined Schengen but is most definitely not part of the EU. Schengen is about the free movement of people, not taxation. Norway will be fine.
Tranona
Well-Known Member
There have been a number of threads here about the difficulties of leaving a boat in Norway over winter as the rules have changed. There is a procedure for effectively storing a boat in bond over winter to avoid paying their VAT.
I misunderstood the OPs question which I now assume to mean is it possible to visit CI and Norway and re-enter EU as a way of extending TI to which the answer is yes as Magnum says.
I misunderstood the OPs question which I now assume to mean is it possible to visit CI and Norway and re-enter EU as a way of extending TI to which the answer is yes as Magnum says.
Sahula
New Member
Vat Foreign yachts
Thanks all for help.
The short answer is, that a foreign yacht by visiting Norway or Channel Islands before end of 18 month VAT free period and can gain another Vat free period of 18 months on producing evidence of stay (fuel or mooring receipts). There is no minimum period for stay.
6months in EU is required before another vat free period is available.
Norway puts boat in bond if seeking vat free stopover ie leaving boat there over winter.
It is best to check with HMRC on Norways, CI's VAT free status.
Sahula
Thanks all for help.
The short answer is, that a foreign yacht by visiting Norway or Channel Islands before end of 18 month VAT free period and can gain another Vat free period of 18 months on producing evidence of stay (fuel or mooring receipts). There is no minimum period for stay.
6months in EU is required before another vat free period is available.
Norway puts boat in bond if seeking vat free stopover ie leaving boat there over winter.
It is best to check with HMRC on Norways, CI's VAT free status.
Sahula
Magnum
RIP
Don't understand your 6 month comment. All that is required is to leave the EU (for no minimum period, but must be provable) before another 18 months of TI is available.
No need to check with HMRC. Norway and CI are outside the EU. That's a fact.
jimbaerselman
Well-Known Member
Agree with Magnum. No minimum period - just proof you've been outside the EU.
I agree that both Norway and CI are not EU, so the theory is that they should both be suitable havens.
I've had one report from a non EU flag yacht which wintered in Jersey and re-entered the EU gaining a new 6 month temporary import permission, subsequently extended to 18 months total. I have no similar Norway reports, so I'm cautious advising without confirming with HMRC first.
Magnum, to set my mind at rest, do you know of anyone who has tested re-entry from Norway?
On the matter of foreign regulations, at the coming Boat Show I will be talking in the Knowledge Box about "Going Foreign" on behalf of The Cruising Association (CA) Monday to Wednesday.
I'll also be answering "Going Foreign" questions from anyone visiting the CA stand (A36) from Saturday 8th afternoon to Friday 14th. Answers given to all comers (if we're got them!). No membership needed. I'd also welcome feedback and views about any regulatory problems anyone has met in foreign waters. Tells us what to research next . . .
I agree that both Norway and CI are not EU, so the theory is that they should both be suitable havens.
I've had one report from a non EU flag yacht which wintered in Jersey and re-entered the EU gaining a new 6 month temporary import permission, subsequently extended to 18 months total. I have no similar Norway reports, so I'm cautious advising without confirming with HMRC first.
Magnum, to set my mind at rest, do you know of anyone who has tested re-entry from Norway?
On the matter of foreign regulations, at the coming Boat Show I will be talking in the Knowledge Box about "Going Foreign" on behalf of The Cruising Association (CA) Monday to Wednesday.
I'll also be answering "Going Foreign" questions from anyone visiting the CA stand (A36) from Saturday 8th afternoon to Friday 14th. Answers given to all comers (if we're got them!). No membership needed. I'd also welcome feedback and views about any regulatory problems anyone has met in foreign waters. Tells us what to research next . . .
Magnum
RIP
I think we need to make sure we are not confusing two separate issues here.
The first one is Temporary Importation (TI) of a non-EU flagged vessel owned by a non-EU resident into EU waters. As stated previously you have 18 months of TI before VAT is due. Remove the vessel from EU waters before 18 months and you can then re-import under a new period of TI VAT free.
However, countries outside the EU may impose restrictions or levy VAT on those who choose to keep boats within their country for extended periods. Norway may do this. I don't know. But I'm sure liability would only be incurred after an extended period, therefore Norway is a suitable destination to take a vessel briefly before the expiry of the 18 month TI period. Re-entry from Norway into the EU satisfies the requirements for TI.
The first one is Temporary Importation (TI) of a non-EU flagged vessel owned by a non-EU resident into EU waters. As stated previously you have 18 months of TI before VAT is due. Remove the vessel from EU waters before 18 months and you can then re-import under a new period of TI VAT free.
However, countries outside the EU may impose restrictions or levy VAT on those who choose to keep boats within their country for extended periods. Norway may do this. I don't know. But I'm sure liability would only be incurred after an extended period, therefore Norway is a suitable destination to take a vessel briefly before the expiry of the 18 month TI period. Re-entry from Norway into the EU satisfies the requirements for TI.
Tranona
Well-Known Member
Yes, there have been a couple of threads recently on the Norwegian rules about keeping a boat there. At one time you had to pay a bond equivalent to the VAT, but seems now it is possible to leave a boat instore over a winter in designated locations.
As always the target is citizens buying a boat outside Norway and keeping it in the country rather than discouraging visitors - although the effect is not dissimilar.
