VAT on imported boat

[ghilliedhu]

Hi,
I wonder if anyone can help.
I am considering buying a British built yacht lying in The Netherlands
She was built in 2001 and is described as tax paid.
Will I be liable for VAT if I bring her back to the U.K.?
The boat has documents making it clear that she has had VAT has been paid.
Thanks for any help you can offer.
David

 

[Graham376]

If the person who exported the boat after UK VAT paid takes it back then it's still VAT paid. If you buy it and take it there then 20% due on import.

 

[Tranona]

Yes, you will have to pay VAT if you import it into the UK, and from June next year it will need to be recertified, probably just a paper exercise, but still costly. You do not say who currently owns the boat, but if the owner is the same person who exported it to the Netherlands he and the boat may qualify for returned goods relief which avoids paying VAT. This concession also runs to June 2022, but the current owner will need to clear it into the UK and then transfer ownership to you.

 

[ghilliedhu]

Thanks both for succinct replies.
the seller will accommodate the vat hit so next step is to find a good fibreglass surveyor near Haarlem or Amsterdam area.
This would be a private sale so extra care needed!
cheers,
david

 

[Tranona]

Suggest you contact here hiswa.nl/en who will have a list of approved surveyors as well as advice on the buying process in Holland

 

[KompetentKrew]

next step is to find a good fibreglass surveyor near Haarlem or Amsterdam area.

I had surveys done on two boats, as I couldn't agree post-survey price adjustments with the seller of the first boat.
(This probably did me a favour, as I feel the boat I ended up with is very suitable.)

Duursma & Versluijs are legendary - you won't go far wrong with them, but I think I had some niggling dissatisfaction with them that led me to choose someone else for the second one.

Not only was I happy with Theo van Rijswijk, but the previous owner was also complementary - "he found some thing that even I did not know about!"

EDIT: I see Theo's website is all in Dutch, but all three speak excellent English.

 

[pandos]

If the person who exported the boat after UK VAT paid takes it back then it's still VAT paid. If you buy it and take it there then 20% due on import.

You should check this out...if it was an EU boat exported, there is 3 or 4 years for returned goods exemption with an extra year for the original exporter.

 

[Tranona]

You should check this out...if it was an EU boat exported, there is 3 or 4 years for returned goods exemption with an extra year for the original exporter.

There is not enough information to say whether RGR applies and which way. The OP only says that VAT was paid - not where, nor by whom. The only thing "British" is that the boat was built in the UK. RGR into UK would only apply if the seller had taken the boat from the UK to Netherlands, notionally within the last 3 years (or earlier if he can take advantage of the extension) and returned it to the UK. Then the sale took place in the UK.

 

[pandos]

There is not enough information to say whether RGR applies and which way. The OP only says that VAT was paid - not where, nor by whom. The only thing "British" is that the boat was built in the UK. RGR into UK would only apply if the seller had taken the boat from the UK to Netherlands, notionally within the last 3 years (or earlier if he can take advantage of the extension) and returned it to the UK. Then the sale took place in the UK.

I know of at lease one English guy who lives in Ireland who took his boat to England this summer having decided that he can retain his UK vat paid status, whilst also have EU vat paid status...simply by visiting the UK.

Surely returning goods status must be in the context of a change of domiscile or residence of the owner..?

 

[Tranona]

I know of at lease one English guy who lives in Ireland who took his boat to England this summer having decided that he can retain his UK vat paid status, whilst also have EU vat paid status...simply by visiting the UK.

Surely returning goods status must be in the context of a change of domiscile or residence of the owner..?

Yes, that seems to be possible and no doubt many people will take advantage of it if easy to move in and out of the EU and their boat was in the EU on 31/12/20. However that is nothing really to do with the OPs question - except that if he buys the boat and pays UK VAT he too will be able to maintain EU VAT paid status by using RGR.

No domicile, residence or citizenship is irrelevant for RGR. Solely linked to the boat and not connected to flag state either. The only real constraint is that it is only the owner that can take advantage of it and once he sells the boat it is lost.