VAT on boats

  • Thread starter Thread starter JB
  • Start date Start date
My explanation of j24jam’s 3 years..

OK Just forget about the HMRC’s one year return concession for the moment.
If you had your boat in the EU up to 3 years before Brexit you could bring it home. If like me, your boat has been in the EU for more than 3 years then tough. I can of course visit the UK up to 18 months at a time.
I think it’s incorrect to extrapolate the 3 years to any other situation.
 
j24jam said:
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?
Click to expand...
This issue has been discussed on numerous threads over the last year. I'm with Tranona on this one as, logically, I can't see how a boat can retain both EU and UK VAT paid status at the same time. Try as I may, though, I couldn't find any official pronouncement on this.
 
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, 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.
Click to expand...
I've always respected your views on these subjects.
You have been posting on here for years and, AFAIK, always been correct in what you say.

But in this case, I would like to ask you this question.
Take Brexit out of the question.
In the past, we have owned boats that were located in the EU.
I thought that if we took our boats out of the EU for 3 years or more, we would have to re-import them on their return - thus triggering a VAT charge.
There fore, I can't see what difference there is now - a boat in the EU can leave for up to 3 years.
If it returns within 3 years, there will be no extra VAT to pay.
So, taking a EU free movement goods status boat into the UK for up to 3 years should work.
And if you move it this year, you will effectively have UK and EU paid status - ask Chris Robb on this.
 
Wow, a very confusing topic that most people seem to be confused about ?
Will rephrase the question
2011 boat. Bought in 2020. Boat was in Hamble at time of purchase and VAT was paid in 2011 when boat was built. In July, boat went by sea to France. On 31/12/20, boat in France. I now believe I am correct in saying that the boat retains the status EU VAT paid. If I decide to bring the boat back to the UK (NOT for tax purposes, to use it there), can I retain my EU VAT paid status and not be caught for VAT when I enter the UK? Can I enter the UK as a visitor ?
 
brennanjed said:
Wow, a very confusing topic that most people seem to be confused about ?
Will rephrase the question
2011 boat. Bought in 2020. Boat was in Hamble at time of purchase and VAT was paid in 2011 when boat was built. In July, boat went by sea to France. On 31/12/20, boat in France. I now believe I am correct in saying that the boat retains the status EU VAT paid. If I decide to bring the boat back to the UK (NOT for tax purposes, to use it there), can I retain my EU VAT paid status and not be caught for VAT when I enter the UK? Can I enter the UK as a visitor ?
Click to expand...

We need to know where you pay tax...
 
brennanjed said:
In theEU
Click to expand...

You will keep the EU VAT paid status as the boat was located in EU on 31/12/20.

So basically you can bring it back to the UK under a temporary admission (for 18 month periods) if you meet the following criteria:

The vessel must be:
  • registered outside the UK in the name of a person established outside the UK. If it is not registered it must belong to someone who has their normal place of residence outside the UK
  • be used by a non-UK resident
The vessel must also be clearly identifiable, for example by registration number/ certificate, name of the vessel or hull identification number.
 
j24jam said:
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.
Click to expand...
There's nothing I would like more than for these statements to be correct, but RGR means "returning goods relief" - it's used when a UK citizen returns home from living abroad and brings their chattels back with them.

I suspect that claiming RGR is to declare that you are exporting the boat from the UK to the EU, and therefore VAT would be payable should it be exported back from the UK to the EU again in the future.

Surely there is nothing special about boats that changes the way their VAT status works? If was living in Paris and returned to live in the UK, I would be able to bring my antique sideboard back with me - under RGR I would pay no tax or import duties. If I sold that antique sideboard to a neighbour he would pay no tax or import duty because it's secondhand goods, but if I (based in the UK) sold it to a frenchman and he wished to take it home to Marseilles with him, then he would have to pay import duty.
 
DavidJ said:
My explanation of j24jam’s 3 years..

OK Just forget about the HMRC’s one year return concession for the moment.
If you had your boat in the EU up to 3 years before Brexit you could bring it home. If like me, your boat has been in the EU for more than 3 years then tough. I can of course visit the UK up to 18 months at a time.
I think it’s incorrect to extrapolate the 3 years to any other situation.
Click to expand...

You can't use temporary admission in the customs area you're resident in.
 
j24jam said:
You will keep the EU VAT paid status as the boat was located in EU on 31/12/20.

So basically you can bring it back to the UK under a temporary admission (for 18 month periods) if you meet the following criteria:

The vessel must be:
  • registered outside the UK in the name of a person established outside the UK. If it is not registered it must belong to someone who has their normal place of residence outside the UK
  • be used by a non-UK resident
The vessel must also be clearly identifiable, for example by registration number/ certificate, name of the vessel or hull identification number.
Click to expand...
Registwrwd in jersey.. will this suffice
 
@brennanjed from your most recent information it seems to me
Your boat is definitely deemed EU VAT PAID
Qualifies for RGR if you decide to take it back to the UK, and
Assuming you are resident outside the UK would qualify for temporary admission to the UK for 18 months at a time.
 
What exactly is Returned goods relief ? Does it mean I don’t have to pay vat when arriving in the uk
 
DavidJ said:
My explanation of j24jam’s 3 years..

OK Just forget about the HMRC’s one year return concession for the moment.
If you had your boat in the EU up to 3 years before Brexit you could bring it home. If like me, your boat has been in the EU for more than 3 years then tough. I can of course visit the UK up to 18 months at a time.
I think it’s incorrect to extrapolate the 3 years to any other situation.
Click to expand...

DavidJ - Where are you resident? AFAIK the 18 month temporary importation into the UK will not be available to UK residents (just like TI into the EU is not available to EU residents).

I may be wrong, but worth checking before hit with a large VAT bill.
 
brennanjed said:
What exactly is Returned goods relief ? Does it mean I don’t have to pay vat when arriving in the uk
Click to expand...

I believe so IF eligible, but need to check eligibility. Believe can only be done if boat is returned to the UK by the same owner who had the boat in the UK previously (and not been materially changed / upgraded).
Again, just what I have read and may be wrong
 
You must log in or register to reply here.

Other threads that may be of interest

steved
Original boat paperwork
2
Replies
30
Views
910
steved
steved

Share this page

Top