Vat Issues bring boat back from Spain.

Hurricane said:
As I understand it, and petem seems to agree, the registration of the boat is completely irrelevant.
It is the goods status of the boat that counts i.e. where it is in free circulation.
But I think you are trying to say that if you own a boat in the UK and that you are a UK resident, you can take your boat into the EU for a maximum of 18 months.
These are the TA rules and you are correct.
And I agree, all you have to do at the end of the 18 months is to take it out of the EU (even for as little as a day) and you can then go back into the EU for another 18 months.

Actually, I thought that John's CA chart was pretty good.
In fact, I have a lot of time for the CA - not so much time for the RYA though.
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I agree Mike.
 
petem said:
Thanks David, I stand corrected.

It's once a vessel (like yours and mine) is VAT paid in the EU, and stays in the EU, the registration becomes rather irrelevant for VAT purposes I believe.
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And it doesn't mean that the government website is actually correct.
My experience over the years that "experts" or "specialists" are often wrong in these matters.
I just wish JFM was here to correct us but I think the "oldies" on this forum (like you and I) have come to challenge this kind of information and as a result we often remain sceptical about statements like that.
 
Hurricane said:
No, thats the point of the TA regs.
Its all about goods and not specifically boats.
The idea of TA is that non-Europeans going on holiday with their (say) caravans) etc can do so freely.
The TA rules allow for 18 months in the EU so, technically, you can go on holiday for 18 months.
That said, you, yourself as a non-European, are limited in the EU to 90 days in any rolling 180 days.

Back to the OP's question.
I am afraid that if he brings his boat back to the EU, the boat will attract another VAT payment.
Think of it as importing the boat into the UK.
Probably best to get some tax advice as to how he could mitigate the tax (boat value etc) but I suspect that UK customs would be the place that he gets clobbered.
As said, there was a lot in the news about this at the time he bought his boat.

Also, as said, it is a shameful situation but, in fact, this issue has been, technically, in place long before Brexit.
For example, if you took your boat out of the EU for more than 3 years or bought a boat outside the EU, it would have attracted VAT on its return to the EU.
Now apply the same logic - just replace the EU with the UK in my sentence above and the same rules apply.
The only thing that has changed is that the UK is now not part of the EU.
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If 'she' brings her boat back to the Eu.lol........
 
julians said:
No, not correct. If you want to bring your boat back there is vat to be paid. Unless you want to try smuggling it back in....
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Julian it was only a joke, because there are so many different opinions, VAT is such a complex matter, I should of added I dont want to bring it back permanently, only for the summer, so then I would quality for the temporary admission by the looks of things,
 
Nosealegsyet said:
Julian it was only a joke, because there are so many different opinions, VAT is such a complex matter, I should of added I dont want to bring it back permanently, only for the summer, so then I would quality for the temporary admission by the looks of things,
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Nope, VAT is due - temporary admission to the UK doesn't apply if you live in the UK.
 
John100156 said:
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.....!
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Yes I know all that
What I am saying is the government could just as easily have decided to set a different rule.

None of this is new. You did have the choice about VAT status depending where you decided to locate the boat on that certain date.
 
MartynG said:
Yes I know all that
What I am saying is the government could just as easily have decided to set a different rule.

None of this is new. You did have the choice about VAT status depending where you decided to locate the boat on that certain date.
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Don't get me wrong, I really don't have a problem. I knew precisely what was going to happen myself, and moaned about it prior to the deadline, I decided however I wanted to keep my boat out in the EU, and would sell her there if required later, no intention of bringing her back to the UK then or now.

Hurricane and I arranged for a number of UK boats in our marina to have pictures taken on the night of 31 Dec 20, and a marina letter to follow confirming location. We sort of knew what we were doing.

A different rule/arrangement may have changed my thinking on all this, but the current double VAT charge I just cannot accept is just and reasonable. I honestly think it is scandalous. I suppose for me its the principle, although I accept and respect different views of others...! I really feel for those that have fallen foul of all this.
 
John100156 said:
A different rule/arrangement may have changed my thinking on all this, but the current double VAT charge I just cannot accept is just and reasonable. I honestly think it is scandalous. I suppose for me its the principle, although I accept and respect different views of others...! I really feel for those that have fallen foul of all this.
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Indeed, but it was inevitable as soon as the UK Govt decided to exit the Customs Union without a Swiss/Norway style agreement in place. Once the border was there, they had to apply the same rules for VAT as for the rest of the World - unless they wanted an immediate claim made at the WTO of treating the EU more favourably.
 
st599 said:
Indeed, but it was inevitable as soon as the UK Govt decided to exit the Customs Union without a Swiss/Norway style agreement in place. Once the border was there, they had to apply the same rules for VAT as for the rest of the World - unless they wanted an immediate claim made at the WTO of treating the EU more favourably.
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Lets face it. Reasonably well off yachties, such as the people on this forum, are not the UK Govts priority.

The really stinking rich ones are. But they are all right as they don't pay VAT anywhere and their boats are owed via Caymen Island companies.
 
Nosealegsyet said:
So what are the implications if I just bring it back for the months of July and August, as Spain is too hot then, and then tow it back to Spain , is this ok?
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As soon as it re-enters the UK, you owe VAT unless you're eligible for Temporary Admission or Returned Goods Relief. From what you've said, you're not eligible for either.

To have retained UK VAT, you had to have the boat in the UK on New Year's Eve last year.
 
No. Temporary importation (or more correctly, temporary admission) relief is only available to non-residents. Therefore UK VAT would be due on importation of the boat in July. Upon returning to the EU, you could claim TA and therefore you would be entitled to leave the boat in the EU for 18 months (following which the clock could be reset by simply leaving the EU and re-entering again).

Edit: Beaten by westernman! Further edit: And st599! :ROFLMAO:
 
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