VAT question and feeling a bit uneasy

[Baggywrinkle]

Resident. Citizenship doesn't matter for tax/VAT purposes. If you for whatever reason take up EU residency, you become liable to VAT immediately when bringing the boat to EU waters.

I am a UK citizen, but resident in the EU, not in the UK. I also have German citizenship but that is not necessarily relevant here.

If I understand your statement correctly, you are implying that I could do a temporary import of a non-VAT paid boat into the UK as an EU resident? ... I would be very wary of turning up at a port of entry in the UK and attempting a temporary import while waving a UK passport, regardless of residency status. Are you sure this will work? While resident in Germany I kept a non-VAT paid boat in Croatia for around 2 years before they joined the EU. I was told I would have to pay VAT if I became a Croatian resident or citizen.

I think that it is either/or .... citizenship or residency in the VAT jurisdiction where the boat is kept and you become liable for VAT.

I would love to be proved wrong however as this opens up all sorts of possibilities for avoiding VAT in my home country. If it only goes on residency, then as a UK citizen, can I claim VAT refunds at the airport when leaving the UK?

 

[GTom]

If the custums officer understand the concept of tax domicile, it won't work. Temporary importation is only available to non-residents. Keep the EU VAT status by moving to boat before the end of the transition period and also get a T2L if Salford still issues them...

And yes, as German resident, regardless your uk passport you'll be entitled to VAT reclaim on uk purchases, but this also depends on the vendor if they bother processing your claim. Afaik, no way to reclaim vat directly from HMRC.

 

[Irish Rover]

I am a UK citizen, but resident in the EU, not in the UK. I also have German citizenship but that is not necessarily relevant here.

If I understand your statement correctly, you are implying that I could do a temporary import of a non-VAT paid boat into the UK as an EU resident? ... I would be very wary of turning up at a port of entry in the UK and attempting a temporary import while waving a UK passport, regardless of residency status. Are you sure this will work? While resident in Germany I kept a non-VAT paid boat in Croatia for around 2 years before they joined the EU. I was told I would have to pay VAT if I became a Croatian resident or citizen.

I think that it is either/or .... citizenship or residency in the VAT jurisdiction where the boat is kept and you become liable for VAT.

I would love to be proved wrong however as this opens up all sorts of possibilities for avoiding VAT in my home country. If it only goes on residency, then as a UK citizen, can I claim VAT refunds at the airport when leaving the UK?

Obviously none of us know what's going to happen between the UK and the EU and we're in the realms of speculation here. However assuming the UK adopts rules similar to the current rules applicable in the EU then your situation wouldn't be much different to mine. I'm an irish EU citizen resident outside the EU. I regularly take my boat to Greece on TI and once I satisfy Customs in relation to my residence outside the EU there's no issue.
I regularly buy stuff in Ireland and avail of the Tax Back scheme. Instead of claiming at the airport I generally favour large stores who process the refund in store. They charge a hefty enough fee for this but it's nice a simple and still leaves you with a sweet discount.

 

[Baggywrinkle]

Obviously none of us know what's going to happen between the UK and the EU and we're in the realms of speculation here. However assuming the UK adopts rules similar to the current rules applicable in the EU then your situation wouldn't be much different to mine. I'm an irish EU citizen resident outside the EU. I regularly take my boat to Greece on TI and once I satisfy Customs in relation to my residence outside the EU there's no issue.
I regularly buy stuff in Ireland and avail of the Tax Back scheme. Instead of claiming at the airport I generally favour large stores who process the refund in store. They charge a hefty enough fee for this but it's nice a simple and still leaves you with a sweet discount.

Well you live and learn, looking forward to future VAT free shopping on visits to the UK. ? ?

 

[Beneteau381]

You say the boat is owned by a trust. Is this a large organisation, likely to have bought the boat from new? If so, then there is a vague possibility that the trust was VAT registered and might have been able to reclaim the VAT. However, if that were the case then there would be a paper trail in existence showing this. From what you describe, it seems the trust is a second or subsequent owner, so the VAT status when she was bought by them is the equivalent of a personal sale, as is the subsequent sale to you.
Given the circumstances you outline, this is a complete none issue. Old boat, relatively small value = no interest in UK from HMRC. Outside UK little chance of interest between now and 31 Jan 21, none at all thereafter.

Unfortunately your advice isnt quite right, no paper trail for individual items on vat returns. Mine were always done on gross figures for goods bought and gross figures on goods sold. So basically my turnover against gross goods bought for resale.

 

[Beneteau381]

Well you live and learn, looking forward to future VAT free shopping on visits to the UK. ? ?

Turkey isnt in the EU, Germany is, no vat discount for you good sir!

 

[lexa777]

Reading some of the comments on here I feel less bad for being confused over VAT ? It's fairly simple on the surface, but wait until you start digging in ?

 

[Irish Rover]

Turkey isnt in the EU, Germany is, no vat discount for you good sir!

I think you misunderstood. Bw is looking forward to the day when the UK won't be in the EU - all depends of course if the "new" UK will have a tax back scheme.

 

[GTom]

Reading some of the comments on here I feel less bad for being confused over VAT ? It's fairly simple on the surface, but wait until you start digging in ?

Without brexsh@t it is quite straightforward, with brexsh@t no one knows what exactly is coming in 2021 - even if 31.12.2010 is the end of the transition period or not. I started to plan moving to boat to EU VAT territory, but it seems the additional costs in the RoI will outweigh the possible import costs of my old Westerly/France is too far for me ATM. The future status of Northern Ireland is a complete unknown, they might actually stay in the EU VAT territory and Scotland might go independent.