Vat Issues bring boat back from Spain.

[Nosealegsyet]

Hi everyone, i bought an English registered boat in Spain, she had one previous owner. That owner purchased it from new in the UK, so obviously paid VAT on the initial purchase. Ive bought it from him in Spain, No VAT paid obviously, but i want to bring it back to the UK. Im not liable for VAT am I ?thanks guys

 

[Mr Googler]

Hi everyone, i bought an English registered boat in Spain, she had one previous owner. That owner purchased it from new in the UK, so obviously paid VAT on the initial purchase. Ive bought it from him in Spain, No VAT paid obviously, but i want to bring it back to the UK. Im not liable for VAT am I ?thanks guys

Where you the owner before 31/12/2020?

 

[DavidJ]

Where you the owner before 31/12/2020?

That’s the all important question
If not you are doomed I’m afraid as far as bringing back VAT free to the UK. You can keep it in the EU, it is EU VAT paid.
Actually even if you were the owner before that date I think the “bring back before June 2022” is only if you were the exporter from the UK.
Read
Update to HMRC Brexit Rules | CA

 

[julians]

That’s the all important question
If not you are doomed I’m afraid.
Actually even if you were the owner before that date I think the “bring back before June 2022” is only if you were the exporter from the UK.
Read
Update to HMRC Brexit Rules | CA

I read the rules the same way, ie to qualify for returned good relief you need to be the original exporter. But others seems to think you only need to be the owner before the end of last year.

Would be good to get absolute clarity

 

[st599]

Where you the owner before 31/12/2020?

Does that matter? I thought only the original exporter can claim returned goods relief.

The OP should probably ask HMRC prior to importing to be 100% sure. He also needs to read up on the UKCA RCR that replaces EU RCD - the UK have decided not to accept previous RCD compliance as proof of RCR compliance.

 

[Tranona]

Deleted

 

[John100156]

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!

 

[John100156]

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....!

 

[DavidJ]

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....!

I would intend to sell my boat in Spain as well come the day. The problem for the OP is that he wants to bring it back to the UK.

 

[John100156]

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!

 

[julians]

I guess the op could temporarily import the boat into the UK? Just like people are talking about doing for boats going the other way.

 

[John100156]

Deleted

Come on Tranona out with it.....

 

[st599]

I guess the op could temporarily import the boat into the UK? Just like people are talking about doing for boats going the other way.

Depends on where he is resident. Temporary import is only available to non-residents (so a UK resident can TI in to EU, or an EU resident can TI in to UK)

 

[John100156]

I guess the op could temporarily import the boat into the UK? Just like people are talking about doing for boats going the other way.

Yep I believe you can temporarily pop out of EU water for a short period and return and retain EU VAT paid status.... Others will be along shortly I reckon to confirm this....?

 

[DavidJ]

Depends on where he is resident. Temporary import is only available to non-residents (so a UK resident can TI in to EU, or an EU resident can TI in to UK)

…….and the boat has to be registered outside the UK

 

[Mr Googler]

I guess the op could temporarily import the boat into the UK? Just like people are talking about doing for boats going the other way.

Only if you’re resident in the “other” country

I didn’t realise you had to be the original “exporter” too. Do you have to “prove” that on the RGR form? How would you do that? Ferry / transport invoice?

 

[John100156]

Not easy, the chap I bought my P45 from brought it around to SCM from France, I have no idea if he, or the previous owner (original owner) took it to France...!

 

[John100156]

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....!

 

[DavidJ]

Totally agree John, I’m an engineer too.
I think the problem is that you can’t have VAT paid in two territories when you have only paid once.

 

[John100156]

Yes but in my case, VAT if I returned the boat to UK would be paid twice to HMRC.....! I pay them enough!

Its not a big issue for me, as I would definitely sell her in the EU, it is just detrimental to me as it reduces the market in which I can sell my boat.

So, in the works of the famous Bard of TV Catherine Tait - Am I bothered, not that much.....