VAT on import of a secondhand yacht

[BrendanChandler]

I know the general rule that vat has to be paid on secondhand craft imported to EU.

I have heard it said that the vat man waives tax on boats owned by an individual if he retains ownership for a year following import.

I have heard it said that if the yacht is imported to Azores, vat is only paid at 5%

Where can I get good information?

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http://hometown.aol.co.uk/brendanchandler/index.html

 

[bedouin]

I find the idea of the VAT man waiving tax unbelievable so I'll discount that bit.

Watch out for the RCD which can also cause headaches.

I know that there are exceptions to the VAT when you are repatriating your chatals (i.e. you have been living abroad) - I suspect that is where the retaining ownership comes from

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[TwoStroke]

Possibly similar to the Forces where they can purchase a vehicle free of VAT abroad, retain ownership for a year and bring it back VAT free.

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[Sybarite]

My understanding is that VAT is waived only if YOU are repatriating and then retain your asset for at least one year. The old rules were that you also had to have owned it for at least 6 months before repatriating.

Some European VAT (standard) rates :

Belgium 21%
Cyprus 15%
Czech Republic 19%
Denmark 25%
Finland 22%
France 19.6% (Capital lease payments for category A boats : 9.8% - on assumption that half time outside territorial waters)
Germany 16%
Greece 18%
Hungary 25%
Ireland 21%
Italy20%
Latvia 18%
Lithuania 18%
Luxemburg 15%
Malta 18%
Monaco 19.6%
Netherlands 17.5%
Norway 23%
Poland 22%
Portugal 18% (Azores 13%)
Slovakia 23%
Spain 16%
U.K. 17.5%

John


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[Redmond]

Log onto the Customs and excise web site - they have a booklet on yachts and VAT coverts everything from how much booz to bring in to rules for importation. Basically if you have lived outside the UK for a certain amout of time your probably right

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[PeteMcK]

HMC&E's helpline person was a bit confused on this when I enquired about six months ago - so confused, in fact, that the steer they gave me was totally bum. An e-mail to their Glasgow info address elicited a convincing statement: basically, unless you are domiciled outside the EU for more than 12 months, you owe tax on any boat you bring in, payable at the port of entry to the EU and on their assessed "value" of the boat (so there's a big unknown in the equation straight away).
I was interested in bringing a Moody 333, in what seemed to be very good nick, from Florida, asking price/offers $28k, seller increasingly keen as months went by, might have got it for $25k, i.e., £14k; adverts here typically £35-40k. So which figure could you be sure the value would be assessed on? The Glasgow office stated that the value would be that which appeared on the US export documents you'd have but that sounds to easy get round. It would be a pity to arrive home and be hit for 17.5% + 1.5% (import duty) of £40k. Note, this boat had been Vat payed when new and UK owned in the Caribbean for many years prior to being US owned and registered, but it makes no difference.
I came to the conclusion that, in exchange for a helluva lot of uncertainty and hassle and time, I might save, realistically, only about 5 grand. At that rate, it didn't add up, unfortunately.
Search the forum for "USA and VAT"

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[JoeQ]

They (HMCE) told me that no VAT was payable on a vessel of over 15 tons. I've requested clarification.

Joe

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[PeteMcK]

They told me no vat was payable on any boat built pre-1985: clarification (by another bit of "them") proved the contrary to be the case. The 15 ton threshold is not one I've come across. I'd be suspicious.

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[AndrewB]

"Domiciled outside EU"

I think this advice is correct. However it means more than simply claiming to have swanned around somewhere distant for a year. One has to be granted non-resident status by <A target="_blank" HREF=http://www.inlandrevenue.gov.uk/pdfs/ir20.htm>Inland Revenue</A>. This has several tax advantages, but also some significant disadvantages.

 

[bedouin]

Re: \"Domiciled outside EU\"

From what I understand of the recent changes - many of the advantages have disappeared. I don't think you can pull the trick anymore of just being "non resident" for a single tax year to re-patriate a lot of assets tax free as was the case until a few years ago.

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