Vat Issues bring boat back from Spain.

[Momac]

Yep I am in the same boat, if I wanted to bring my P45 back to UK I will need to pay the VAT. It was a UK/EU VAT paid boat before 31 Dec 2020 and was in Spain at that date, I did not export it so I get hit - no sale on which VAT can be calculated but VAT/import charged nevertheless - criminal!

Yep and to do so he will be hit by what is in IMHO a totally unjust penalty....! The VAT for my boat was paid to HMRC just seems wrong!

Nevertheless it is the law . And the law does not need to pass any test of reasonableness.
It could be worse - you might be faced with a Spanish VAT bill right now.

 

[st599]

Surely a fairer system would have been for boats purchased and VAT paid in the UK, if returned to the UK, should not be liable to pay VAT again as there has in effect not been any sale.

I do understand someone in the chain could have reclaimed VAT, but if you can prove that is not the case, then why should VAT be paid twice - I am an engineer, perhaps those more educated in tax laws can explain, if they can be bothered....!

VAT is charged on sales and imports, otherwise a UK seller would be at a disadvantage against an importer.

 

[Mr Googler]

VAT is charged on sales and imports, otherwise a UK seller would be at a disadvantage against an importer.

Don’t really understand that in this context.

We are talking boat sales/purchases between private individuals so a non vatable event anyway. It makes no sense that just because the current owner didn’t move the boat abroad….they now can’t bring it back even though they owned it prior to Brexit. The extension to June 22 was supposed to help but the “exporter” bit screws it really.

 

[John100156]

VAT is charged on sales and imports, otherwise a UK seller would be at a disadvantage against an importer.

Yes - but if I bring my own boat back to the UK, there is no sale.....!

 

[John100156]

Nevertheless it is the law . And the law does not need to pass any test of reasonableness.
It could be worse - you might be faced with a Spanish VAT bill right now.

No that's not the case - If the boat can prove it was UK/EU VAT paid before 30 December 2020, as long as it stays in the EU, it remains EU VAT paid....! Its HMRC that benefits from double VAT tax receipts in my case, even if I just want to sail her back myself and wish to keep her in the UK as a UK resident.....!

 

[st599]

Yes - but if I bring my own boat back to the UK, there is no sale.....!

But there is an import.

 

[st599]

Don’t really understand that in this context.

We are talking boat sales/purchases between private individuals so a non vatable event anyway. It makes no sense that just because the current owner didn’t move the boat abroad….they now can’t bring it back even though they owned it prior to Brexit. The extension to June 22 was supposed to help but the “exporter” bit screws it really.

The RYA went in to this in detail on their Brexit Webinars last year. If they're still online they go in to it in detail.

 

[John100156]

Yeah dialled-in and followed RYA - don't think they did a particularly good job to be honest, CA also challenging, but the longer it goes on,and people pay VAT, less likely a U-Turn, as they would need to refund - anyway as I say, not a great deal for me, just doesn't seem right.

 

[westernman]

Yes - but if I bring my own boat back to the UK, there is no sale.....!

But there is an importation. Just as if you had brought it back from the USA.

 

[westernman]

Yeah dialled-in and followed RYA - don't think they did a particularly good job to be honest, CA also challenging, but the longer it goes on,and people pay VAT, less likely a U-Turn, as they would need to refund - anyway as I say, not a great deal for me, just doesn't seem right.

It is right. It is not fair, but it is right.

 

[DavidJ]

I can understand that a new boat imported for a UK individual must pay VAT to level the playing field for a UK boat manufacturer. But an individual to individual importation of a secondhand boat does not disadvantage anyone in the UK tax wise. Does seem unfair for HMRC to gain.

 

[John100156]

It is right. It is not fair, but it is right.

Many things are right, until they are proved to be wrong....!

 

[Bigplumbs]

Yep and to do so he will be hit by what is in IMHO a totally unjust penalty....! The VAT for my boat was paid to HMRC just seems wrong!

It does indeed seem very harsh and unfair

 

[Bigplumbs]

If you take a small trailer boat over on the Ferry from UK to say France to have a little fun on for say 2 weeks on holiday. Are there VAT implications

 

[Nosealegsyet]

Where you the owner before 31/12/2020?

yes I was I purchased it on the 14th December 2020.

 

[Nosealegsyet]

Not that it matters much - UK VAT paid boats are selling in Spain, which is where I will sell her if I wish, it took a friend just a few weeks to sell his F43, at full asking price, berthed in our marina just last week....!

My boat was a UK Vat paid boat, and I bought it in Spain, I don't understand why it has to be paid again?

 

[Tranona]

Because that is the law. The change following Brexit was well publicised at the time and subsequently.

 

[Nosealegsyet]

Because that is the law. The change following Brexit was well publicised at the time and subsequently.

ok, so where would you pay it ? How do you go about it? Would it be better for me to sell the boat and buy again in the uk or not?

 

[Bigplumbs]

My boat was a UK Vat paid boat, and I bought it in Spain, I don't understand why it has to be paid again?

It sounds incredibly Harsh. If it is a lot of money you are talking about is might be worth employing a tax specialist

 

[Bigplumbs]

ok, so where would you pay it ? How do you go about it? Would it be better for me to sell the boat and buy again in the uk or not?

I think people would need to know a lot more about your boat and it value etc to help in that regard. Large boats are very scarce to buy in the UK at the moment