VAT on boats

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JB

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Hi,
Despite searching high and low, I just cannot get the answer to this question.
My boat is in France. When purchased originally, UK VAT was paid. I bought it this year and re registered it in Jersey. We are based within the EU.
The question is, what will happen if I bring the boat back to the UK for the winter or if I bring it to another EU country?
Is there a situation where I will be liable for more VAT on the boat?
thanks
 
brennanjed said:
Hi,
Despite searching high and low, I just cannot get the answer to this question.
My boat is in France. When purchased originally, UK VAT was paid. I bought it this year and re registered it in Jersey. We are based within the EU.
The question is, what will happen if I bring the boat back to the UK for the winter or if I bring it to another EU country?
Is there a situation where I will be liable for more VAT on the boat?
thanks
Click to expand...
Where was it on 31/12/20? If it was in the EU you are fully covered by VAT to stay in the EU forever, but if you want it to resume UK VAT paid status only you need to get it back to the UK in 2021.
If it was in the UK on 31/12/20 then you still have UK VAT paid status but have lost EU paid status. However you can keep taking it to the EU for 18 months at a time as long as you take it to a country outside the EU for a day to reset the 18 month clock back to zero.

The registry of boat is irrelevant.
 
The boat was in France on 31/12/20. Thank you for your reply. If I bring it back to the UK in 2021, i will retain UK vat paid status , but will I retain Eu vat paid status?
 
Ok, so does that mean that if the boat comes to the UK it loses EU VAT paid status and gets UK VAT paid status? Can I visit the UK for a few months and leave again while retaining EU vat status
 
brennanjed said:
Ok, so does that mean that if the boat comes to the UK it loses EU VAT paid status and gets UK VAT paid status? Can I visit the UK for a few months and leave again while retaining EU vat status
Click to expand...
There is the 18 month rule as Rupert pointed out but not to be confused by the one year concession from the HMRC to bring back your boat after Brexit (because of COVID) The concession is not reciprocated by the EU.
Once it’s back in the UK (for more than 18 months) all opportunity to have EU VAT is lost, unless you pay of course.
 
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DavidJ said:
No you can’t have both UK VAT and EU VAT status
Click to expand...

But you can.

If you own a UK VAT paid boat that was in the EU on 31/12/20 and had her in the UK during the 3 years leading up to the 31/12/20 before taking her to the EU, you can bring the boat back to the UK until 31/12/21 and UK VAT will not be due on import. EU VAT is not lost at this point, so the boat will be both EU and UK VAT paid.

If you return the boat to the EU every 3 years from leaving, the EU VAT paid status will remain.

This is assuming the owner is a UK resident for tax purposes.
 
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We all learn a little bit more each time we go around this one

I would like a double check (with respect) on j25jam’s second paragraph
If you return the boat to the EU every 3 years from leaving, the EU VAT paid status will remain.
 
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Not sure if the helps the OP 100% but this is what I was advised by HMRC Southampton on Friday, for wider consumption.

Princess V42 French VAT paid, was located in South of France since 2010 (brand new). Trucked back to UK dealer in 2016, where we bought her in a PX deal. When she was bought back to UK, dealer registered her in Guernsey. We sea trialled her in the UK and trucked her back to the Med in 2017. She was in Spain 31.12.2020

Question to HMRC - what taxes would I incur If I decided to re-locate to UK.

Response - if you can prove that she has been used in UK waters, provided she is trucked back to the UK before December 2021, I can claim returned goods relief, and trucker just needs to show customs a form C88 at port of entry.

2nd Question to HMRC - what would happen if I sold the V42 to a mate in Spain before December this year and he wanted to bring her back to UK.

Response - the RGR applied to me NOT the boat. In such case, he would be liable for UK VAT when it returns to UK, as that status is lost when I sell the boat.

So if I decide to sell, I could sell to a Med or UK based buyer. If a UK based buyer, to save him VAT, I would need to (re)import back to the UK before the sale concludes.
 
DavidJ said:
I would like a double check (with respect) on j25jam’s second paragraph
If you return the boat to the EU every 3 years from leaving, the EU VAT paid status will remain.
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I do believe I am correct, but given I'm not HMRC I may not be!

This sentence is based on the boat being UK VAT paid prior to 31/12/20 (and therefore also EU VAT paid at that date).

Bringing the boat back from the EU to the UK under RGR has no effect on its VAT status, so the EU VAT paid status is not lost. If a boat remains outside of its VAT region for over 3 years it can lose its VAT paid status. Therefore if you pop over to cherbourg once every 3 years, the boat will keep its EU and UK VAT paid status until the boat changes hands. At which point it will lose the VAT paid status of the region (EU or UK) it is not sold in. (i.e sale completes in France, EU VAT paid status kept, UK VAT paid status lost)
 
Andy Bav said:
So if I decide to sell, I could sell to a Med or UK based buyer. If a UK based buyer, to save him VAT, I would need to (re)import back to the UK before the sale concludes.
Click to expand...

Yes thats correct as long as you reimport her to the UK before 31/12/21.. after that the RGR 1 year extension ends.
 
j24jam said:
Yes thats correct as long as you reimport her to the UK before 31/12/21.. after that the RGR 1 year extension ends.
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Are we sure the OP qualifies for RGR in the UK. My understanding [could be mistaken] is he only bought the boat recently in France. If that's so it wasn't he who "exported" the boat from the UK and as such may not qualify for RGR.
 
Irish Rover said:
Are we sure the OP qualifies for RGR in the UK. My understanding [could be mistaken] is he only bought the boat recently in France. If that's so it wasn't he who "exported" the boat from the UK and as such may not qualify for RGR.
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Sorry I was speaking in more general terms rather than OP's situation. The OP hasn't given enough information to answer his question..

You are correct in saying if the owner wasn't the exporter from the UK, then RGR is not applicable
 
That is completely wrong. Once the boat is returned to the UK it loses EU VAT status. There is no mechanism for a UK resident to keep an EU status boat in the UK. No idea where your "3 year" bit came from.

To the OP. The boat cannot have VAT paid status in EU AND UK. Once it is in the UK either under the concession, returning resident or the RGR rules if you qualify it becomes UK VAT status. You can then visit the EU at any time under the TA rules up to nominally 18 months, but once the boat exceeds that EU VAT becomes due and it gains EU VAT status and loses UK status.

It is not clear if you bought the boat in France. If you did the UK VAT payment is irrelevant and the boat is EU VAT paid, so if you bring it to the UK VAT is due on arrival as an import as it will not qualify for any of the reliefs except possibly for returning resident.
j24jam said:
But you can.

If you own a UK VAT paid boat that was in the EU on 31/12/20 and had her in the UK during the 3 years leading up to the 31/12/20 before taking her to the EU, you can bring the boat back to the UK until 31/12/21 and UK VAT will not be due on import. EU VAT is not lost at this point, so the boat will be both EU and UK VAT paid.

If you return the boat to the EU every 3 years from leaving, the EU VAT paid status will remain.

This is assuming the owner is a UK resident for tax purposes.
Click to expand...
 
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Tranona said:
That is completely wrong. Once the boat is returned to the UK it loses EU VAT status. There is no mechanism for a UK resident to keep an EU status boat in the UK. No idea where your "3 year" bit came from.

To the OP. The boat cannot have VAT paid status in EU AND UK. Once it is in the UK either under the concession or the RGR rules it becomes UK VAT status. You can then visit the EU at any time under the TA rules up to nominally 18 months, but once the boat exceeds that EU VAT becomes due and it gains EU VAT status and loses UK status.
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I've only noticed now that you're back posting. Welcome. Your input has been greatly missed.
 
Why? Quote me the rules that say you can do what you are suggesting. If it were true then all this discussion about the impact of Brexit has been a waste of time. Sorry but your original post is just nonsense.

The only thing that you have written that is correct is the first sentence of post#11
 
Does anyone know if there is a mechanism to buy a used boat in the UK and claim the VAT back? For example, if a broker has a 15 year old boat for sale, can they sell it VAT free?
Or is it only boats that didn’t have VAT paid originally that can be sold ex VAT
 
Tranona said:
Why? Quote me the rules that say you can do what you are suggesting. If it were true then all this discussion about the impact of Brexit has been a waste of time. Sorry but your original post is just nonsense.

The only thing that you have written that is correct is the first sentence of post#11
Click to expand...

The impact comes once the boat changes hands after the transition period ended.

Why don't you show me where it says what I suggest is incorrect?
 
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