Vat Paid (Now We Have Left The Union, or Have We?)

[langstonelayabout]

As a Solent based yachtie I've just been told of a EU VAT paid boat for sale in Ireland. Nice boat, and I'm sorely tempted.

Does the fact that we British types are 'in transition' mean we can still buy a Union VAT paid boat and that it retains its UK VAT paid status (until 31/12/2020), or does it mean that no-one knows for sure?

Many thanks in advance

 

[Irish Rover]

If you buy it and bring it back to the UK before 31/12/2020 [or possibly a later date depending on the length of the Transition Period] it will have UK VAT paid status going forward.

 

[sailaboutvic]

you will find lots of info in the liveaboard forum but as it stand now what IR said is correct .
one option you have is if you buy it and bring it back to the UK before the leaving date more it back in the EU for a short time .

 

[Graham376]

Being Solent based, you can have the best of both worlds. Under the rules as we know them now, if you buy it and take it back to UK, it retains its UK VAT status as said above. If you then nip across the Channel and have it in the EU at the end of the transition period, it will then also have EU VAT paid status.

 

[Irish Rover]

Being Solent based, you can have the best of both worlds. Under the rules as we know them now, if you buy it and take it back to UK, it retains its UK VAT status as said above. If you then nip across the Channel and have it in the EU at the end of the transition period, it will then also have EU VAT paid status.

In relation to the part of your post I've highlighted this is one aspect I'm still unclear about. The B Day status of a boat is clear - if in the EU it has EU VAT paid status and if in the UK it has UK VAT paid status. I also understand that boats in the EU on B day can be brought back to the UK subsequently without paying VAT under the RGR arrangements and vice versa. But, surely, a boat cannot have both UK and EU |VAT paid status at the same time [unless you pay the VAT again either in the EU or the UK.

 

[sailaboutvic]

In relation to the part of your post I've highlighted this is one aspect I'm still unclear about. The B Day status of a boat is clear - if in the EU it has EU VAT paid status and if in the UK it has UK VAT paid status. I also understand that boats in the EU on B day can be brought back to the UK subsequently without paying VAT under the RGR arrangements and vice versa. But, surely, a boat cannot have both UK and EU |VAT paid status at the same time [unless you pay the VAT again either in the EU or the UK.

I think the key proint here is if the boats in the EU on B day youcan prove vat EU status, if you take it back to the UK at some point to sell , who's to say where the boat was on such date as in the U.K. there not looking for prove where's the boat was at any date .
If you get my point .

 

[Graham376]

But, surely, a boat cannot have both UK and EU |VAT paid status at the same time [unless you pay the VAT again either in the EU or the UK.

Lets say your boat is in Greece now and remains there until we leave the EU, it will retain its EU status. You can then bring it back to the UK and use Returned Goods Relief to avoid paying VAT again. From then on, you will have paperwork confirming it was in the EU at the critical time so should be free to return, as if it had remained there.

 

[sailaboutvic]

Sorry guys tried to edit last post to correct spelling but the bloody thing just keep wiping every thing out .

 

[Irish Rover]

Lets say your boat is in Greece now and remains there until we leave the EU, it will retain its EU status. You can then bring it back to the UK and use Returned Goods Relief to avoid paying VAT again. From then on, you will have paperwork confirming it was in the EU at the critical time so should be free to return, as if it had remained there.

This just doesn't seem right to me and I don't think it will be as loose as that. I think availing of RGR will automatically invalidate the EU VAT paid status and vice versa for boats going the other direction.

 

[Graham376]

This just doesn't seem right to me and I don't think it will be as loose as that. I think availing of RGR will automatically invalidate the EU VAT paid status and vice versa for boats going the other direction.

Need to check up on it but, I think RGR is also enshrined in EU law. Anyway, who's going to be daft enough to tell them it's been out of the territory?

 

[Irish Rover]

Need to check up on it but, I think RGR is also enshrined in EU law. Anyway, who's going to be daft enough to tell them it's been out of the territory?

RGR is also valid in EU. If you are leaving the EU you are required to sign out - see Customs notice 8 in UK.
Of course you can chance coming and going without obeying Customs formalities but if the purpose is VAT evasion then on your head be it.

 

[Graham376]

RGR is also valid in EU. If you are leaving the EU you are required to sign out - see Customs notice 8 in UK.
Of course you can chance coming and going without obeying Customs formalities but if the purpose is VAT evasion then on your head be it.

There is no VAT evasion on a UK VAT paid boat, returning to the UK, before or after Brexit. Keeping its status in the EU by being there on 31st December, does not alter its UK status, as long as it returns under the same ownership as when it left, it's still VAT paid.

 

[Irish Rover]

There is no VAT evasion on a UK VAT paid boat, returning to the UK, before or after Brexit. Keeping its status in the EU by being there on 31st December, does not alter its UK status, as long as it returns under the same ownership as when it left, it's still VAT paid.

I think we've agreed a long time ago that a boat can return under the RGR arrangements but, once it does so, it is my belief it will not be able to return to the EU again as an EU VAT paid boat unless it pays the VAT again. It will have exactly the same status in the EU as a boat which remained in the UK on B day. Don't ask me for a link because I haven't got one but, as I said earlier, I can't see any way a boat can have both EU and UK VAT paid status at the same time without paying the VAT again.