VAT Question

[Sandy Guest]

My son in law,an eu citizen, wants to bring his EU Vat paid boat to the uk for as long as possible (I believe its either 18th months or 2 years). That is not the question..

The question is : As a UK citizen,is it ok for me to use that boat whilst it is in the Uk or is it only him,as a EU citizen allowed to use it the boat or be on the boat whilst I am using it.

Please would you kindly post an answer only if you are sure.

Thank you very much indeed folks

 

[Irish Rover]

Citizenship irrelevant. Where does he reside?

 

[ylop]

As Irish says its your (and his) tax residency rather than citizenship that matters but if you mean - he is an EU Resident and you are a UK Resident then the rules you want are here:

Sailing a pleasure craft into the UK temporarily for private use

 

[westernman]

What does it mean by "registered outside the UK"?
Does that mean it cannot be a Part I UK ship registered to the foreign address of the non-UK resident???

 

[Irish Rover]

What does it mean by "registered outside the UK"?
Does that mean it cannot be a Part I UK ship registered to the foreign address of the non-UK resident???

Yes.

 

[Buck Turgidson]

What does it mean by "registered outside the UK"?
Does that mean it cannot be a Part I UK ship registered to the foreign address of the non-UK resident???

I was looking at this recently as I am a UK Citizen, resident in Switzerland (outside EU but inside Schengen) with a UK Part 1 boat that was in the UK and EU when I bought her but in the EU on B day. Oh and it's old enough to pre-date VAT everywhere.

 

[Tranona]

Oh and it's old enough to pre-date VAT everywhere.

That is irrelevant. VAT paid "status" can be acquired in different ways, not just by having VAT paid at the point of purchase. In the case of your boat it gained EU VAT paid status under the terms of the Lisbon treaty. If it was in the EU on 31/12/2020 it maintained that status but if in the UK it gained UK status and potentially lost EU status.

 

[Buck Turgidson]

That is irrelevant. VAT paid "status" can be acquired in different ways, not just by having VAT paid at the point of purchase. In the case of your boat it gained EU VAT paid status under the terms of the Lisbon treaty. If it was in the EU on 31/12/2020 it maintained that status but if in the UK it gained UK status and potentially lost EU status.

All that is clear. Now tell me about using it temporarily in the UK?

 

[Irish Rover]

All that is clear. Now tell me about using it temporarily in the UK?

Not possible with a UK flag under TA rules. There is a complicated procedure for bringing it in temporarily for repairs or upgrades but I guess that's not what you're after.

 

[dunedin]

All that is clear. Now tell me about using it temporarily in the UK?

In your case complicated? As Irish Rover says using Temporary Admission might be fine for a non UK resident - except for the fact the boat is UK registered (reflagging to Switzerland might resolve that).

On the other hand if you owned it in the UK originally, as same owner you may be able to bring back without needing to pay VAT using Returned Goods Relief, now that the three year limit has been removed.
But no idea if your non UK residence precludes this.

 

[Tranona]

All that is clear. Now tell me about using it temporarily in the UK?

You did not ask that - you just made a statement. However the official guidance is clear - link in post#3. However as dunedin says if you bought it in the UK you may use RGR. Your citizenship, residence, registration are all irrelevant in this case. It is only the boat and ownership that matters. In this case the boat may well have "dual" status and it can come and go as much as it likes provided you stick to the EU rules for return within 3 years.

 

[Buck Turgidson]

You did not ask that - you just made a statement. However the official guidance is clear - link in post#3. However as dunedin says if you bought it in the UK you may use RGR. Your citizenship, residence, registration are all irrelevant in this case. It is only the boat and ownership that matters. In this case the boat may well have "dual" status and it can come and go as much as it likes provided you stick to the EU rules for return within 3 years.

The official guidance quoted does no apply to UK flagged vessels.
I've just fired off an email to His Majesty's finest so we will soon find out!

 

[westernman]

The official guidance quoted does no apply to UK flagged vessels.

It depends on what "registered outside the UK" is supposed to mean.

Does it mean that the owners address on the registration document is outside the UK or that the registration document itself issued by an organization outside the UK (i.e. a foreign flag)?

Not clear to me.

 

[Irish Rover]

The official guidance quoted does no apply to UK flagged vessels.

I guess you could argue that since UK flagged vessels are not entitled to TA. It doesn't change the reality however.

 

[Buck Turgidson]

It depends on what "registered outside the UK" is supposed to mean.

Does it mean that the owners address on the registration document is outside the UK or that the registration document itself issued by an organization outside the UK (i.e. a foreign flag)?

Not clear to me.

Then we both wait with bated breath...sp.

 

[Irish Rover]

Then we both wait with baited breath....

My boat is register UK Part 1. I'm an Irish citizen, resident in Türkiye. My boat has never been in the UK. The registration process was done entirely online from Türkiye. I certainly wouldn't be arguing my boat is registered outside the UK.

 

[Tranona]

The official guidance quoted does no apply to UK flagged vessels.
I've just fired off an email to His Majesty's finest so we will soon find out!

No, because they are not allowed TA according to the official guidance, although if the craft is unregistered proof that the owner is resident outside the UK seems to be acceptable.

The basic TA rule is cut and paste from the original EU where your situation would not have been such an issue. However, looking at the guidance there is more detailed rules on how the boat can be used and when the clock will stop, somewhat mirrroring how it operates in Greece. That is TA is intended for non residents to actually use the boat while it is in the UK, not just park it up. I suspect not much thought was given to the wording at the level that would cover your situation. It will be interesting to see what sort of response you get.

BTW is your breath using lugworm or ragworm?