vat from guernsey

[apcpuk]

we were hoping to buy a boat from guernsey, but are not sure if we have to pay vat on our return to portsmouth. we have been told that vat is not payable on boats over a certain age the boat is 1973, also if we do have to pay vat where and who do we pay it to? do you have to pay on the day that you enter port or is there a time limit?
thanks in advance for any help that anyone might be able to give
lew

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[jamesjermain]

This, taken from the RYA website, should help, though it is not very encouraging.

I am buying a boat outside of the EU, eg Turkey, USA, Channel Islands, what is the VAT position?

'ANY yacht purchased outside the EU will be liable for VAT, regardless of age or previous tax history. There may also be Import Duty unless the boat is more than 12 metres length overall, or built in the EC. Charges become due at the first port of call.' (source: HM Customs & Excise)


One of the most common VAT pitfalls seems to be a misunderstanding about VAT status and the fact that it can change throughout a boat's life. For example, if a boat has been bought in the UK VAT-paid and is then taken outside the EU to Turkey or the USA where it is eventually sold, it has LOST its original VAT-paid status. This means that VAT will again be payable on the boat if it is brought back by the new owner, who is an EU citizen, into the EU. VAT must be paid in the first port of call within the EU.


This also means that if a boat is owned by an EU citizen in a non-EU country and is VAT-unpaid, it may not be used to visit the EU even for a day unless VAT is paid on it immediately on entry to the EU.


Countries that are currently outside of the EU or the EU VAT area include: Turkey, Croatia, Channel Islands, Gibraltar, USA, South Africa, New Zealand, Australia. Please note that the list is not exhaustive.


Please note that this FAQ is intended a guide only.


Further information can be found at:


National Advice Service Tel: 0845 010 9000


HMCE Notice 8 "Sailing your pleasure craft to and from the United Kingdom". Click here to visit the HMCE website and view a copy of Notice 8.


HMCE Information Sheet "UK Guide for Yachts". Click here to visit the HMCE website and view the information sheet "UK Guide for Yachts".


http://www.hmce.gov.uk



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[steve_cronin]

How it works is:-
A boat in the UK BEFORE the implementation of VAT is considered "Tax Exempt" which is itself one of the VAT statuses, the others including (but I just locked my tax guide away to go home and I'm not getting it out again until monday so this is not a complete list!) "Zero Rated" " Standard Rated" etc. If a boat of any age (or any other item for that matter unlesss it's exempt) is imported from outside the EU into the EU then VAT is payable at the standard rate in the country to which it is first imported.

So I suppose, get it to Cyprus (& pay their import tax at 4%) before 4th May, then you can move it anywhere once the Cypriot authorities declare it's tax status. Maybe this is already being done?

Steve Cronin



<hr width=100% size=1>The above is, like any other post here, only a personal opinion

 

[TonyD]

Does this mean that if I buy a VAT paid boat from an EU citizen whilst the boat is located in Turkey, that it will be liable for VAT again, whereas if he moves it to Greece it will not? Or is it the domicile of the vendor rather than the location of the vessel that counts?

TonyD

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[whisper]

"Charges become due at the first port of call" - they probably do become due but you have a few weeks to actually pay the cash over. I have a feeling it may be 30 days but can't remember exactly what we did a couple of years ago.

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[steve_cronin]

Location of the transaction

Steve Cronin

<hr width=100% size=1>The above is, like any other post here, only a personal opinion