VAT status and Northern Ireland, 2021 and later

[Red Panda]

Maybe find a marina in an EU country willing to hire you a berth for the two days over the 31st December/1st January.
As long as you have the receipt stating you had a berth, wouldn't that be enough?

After all, that's all the proof you'd have, in most cases, if you had actually moved your boat

This may well be the right answer!

 

[moretti]

I thought I would revive this thread as I am thinking of buying a boat in France and bringing it back to my home in Northern Ireland (Leader 10 far more of them in France).

Does the dual status arrangement mean no VAT is payable?

Does this mean when I'm ready to sell, it does not matter if the sale is to an Irish resident or a UK resident or even an EU resident for that matter, no VAT is payable?

 

[dgadee]

Email niru@hmrc.gov.uk

 

[moretti]

Thanks, Reply from NIRU was just to pass me on to the imports/exports helpline. I've been reading on Aflaot.i.e. that south of the border can buy a used boat from NI without VAT implications. I take it that means a boat from an NI owner complies with both EU and UK VAT paid status regardless of where the boat was purchased.

 

[dgadee]

Thanks, Reply from NIRU was just to pass me on to the imports/exports helpline. I've been reading on Aflaot.i.e. that south of the border can buy a used boat from NI without VAT implications. I take it that means a boat from an NI owner complies with both EU and UK VAT paid status regardless of where the boat was purchased.

I am travelling just now. I have emails confirming that I can bring my Greek based boat home to NI. I also have an email saying I can move the NI based one to Scotland (as I am doing now). All without VAT having to be paid.

I am moving home so these issues are relevant to me.

 

[moretti]

Thanks again, It looks like for NI boaters anyway there is at least some advantage to Brexit and living in NI. I'll be hoping to get this confirmation myself before I do a deal on a boat in the EU. Also I have to think about resale in 3-4 years as this boat is just a stepping stone to the boat I want. I do not want to find myself with a boat that cannot be sold within both Ireland and UK markets, as this is the natural selling ground. I hope all goes well with the move.

 

[dgadee]

HMRC may not like this VAT back door but I can't see how it can be closed. VAT does not have any residence attributes.

 

[TernVI]

I am travelling just now. I have emails confirming that I can bring my Greek based boat home to NI. I also have an email saying I can move the NI based one to Scotland (as I am doing now). All without VAT having to be paid.

I am moving home so these issues are relevant to me.

The fact that you would be relocating from NI to GB makes you a special case.
You could possibly bring your boat into the UK with you VAT free if you were relocating from e.g. the USA.

NI has been synonymous with VAT fraud and 'carousel trade' since long before the referendum. The EU VAT system is an evolving beast, loopholes closed, new loopholes created. If lots of people start costing the EU or UK too much money, loopholes will be closed. While the VAT lost is small relative to the political capital, loopholes will be tolerated.

 

[dgadee]

Not so sure the route is not open to all. Move it to NI for a season then GB.

 

[moretti]

You have to be an NI resident. Its not about boat location. NI is the only place with both EU and UK status simultaneously. I think NI is too small in the boating world to cost anyone any serious money. You would be hard pressed to find a decent boat for sale in NI. Also these are VAT paid boats we are talking about.

 

[dgadee]

You have to be an NI resident. Its not about boat location. NI is the only place with both EU and UK status simultaneously. I think NI is too small in the boating world to cost anyone any serious money. You would be hard pressed to find a decent boat for sale in NI. Also these are VAT paid boats we are talking about.

Show me where residence is specified. VAT is about the goods, not where who pays it is based.

 

[moretti]

direct quote from afloat.ie

"It's also understood that second-hand boats purchased from Northern Ireland are not subject to additional VAT if proof can be shown that the vessel has paid VAT and had been owned by an NI resident"

 

[dgadee]

direct quote from afloat.ie

"It's also understood that second-hand boats purchased from Northern Ireland are not subject to additional VAT if proof can be shown that the vessel has paid VAT and had been owned by an NI resident"

I would not take my legal or tax advice from afloat.ie. You are welcome to do so, of course.

 

[moretti]

No I will definitely be finding out from HMRC. But I think afloat are right in this regard. The only country in the EU and UK to have dual status is NI. How else are you bringing a boat home from Greece without paying VAT? If it was in Greece on the 31st Dec then VAT would be due on its return to the UK is my understanding!

 

[Graham376]

HMRC may not like this VAT back door but I can't see how it can be closed. VAT does not have any residence attributes.

VAT does have a residence attribute, depending on whether a resident is bringing goods in and under what circumstances or, a visitor who is allowed 18 months visit in the case of a boat.

Personal reliefs for permanently imported goods
VAT will be relieved on these movements of goods if your goods are permanently moved between Great Britain and Northern Ireland for any of the following reasons:

• change of residence
• marriage
• students studying
• honorary awards or decorations
• inheritance

How VAT will apply to goods moving between Great Britain and Northern Ireland - GOV.UK (www.gov.uk)

 

[dgadee]

Report back.

 

[dgadee]

VAT does have a residence attribute, depending on whether a resident is bringing goods in and under what circumstances or, a visitor who is allowed 18 months visit in the case of a boat.

Personal reliefs for permanently imported goods
VAT will be relieved on these movements of goods if your goods are permanently moved between Great Britain and Northern Ireland for any of the following reasons:

• change of residence
• marriage
• students studying
• honorary awards or decorations
• inheritance

How VAT will apply to goods moving between Great Britain and Northern Ireland - GOV.UK (www.gov.uk)

Yes, but are these the only reasons? And where in the legislation is this laid out. I would want to see how HMRC arrive here.

HMRC clearly don't want a backdoor, but Johnson set one up.

 

[Graham376]

Yes, but are these the only reasons? And where in the legislation is this laid out. I would want to see how HMRC arrive here.

HMRC clearly don't want a backdoor, but Johnson set one up.

I haven't a clue where the legislation is and can't be bothered searching. Any back door will be slammed pretty quickly anyway, HMRC have already stated that using Ireland as a stepping stone to avoid VAT wouldn't be allowed. Surprised they called it "avoidance" which is generally OK, whereas "evasion" isn't.

 

[dgadee]

I haven't a clue where the legislation is and can't be bothered searching. Any back door will be slammed pretty quickly anyway, HMRC have already stated that using Ireland as a stepping stone to avoid VAT wouldn't be allowed. Surprised they called it "avoidance" which is generally OK, whereas "evasion" isn't.

Ireland or Northern Ireland?

 

[Graham376]

EU South to North to UK mainland.