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Navigating and living on the waterways of Continental Europe and news of canal developments.
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TOPIC: VAT after Brexit

VAT after Brexit 20 Oct 2020 17:28 #119133

  • Helen Mitchell
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Thanks for the links Pat

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VAT after Brexit 20 Oct 2020 13:54 #119129

  • Pat Blanchard
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FWIW, as they say, in the last couple of weeks there has also been a huge amount of speculation and discussion on this VAT subject over on YBW.
Here's the link, but be warned it runs to 13 pages - so far. The current last posting (end of p.13), from someone who is something of an expert (maybe!) characterises the situation as a storm in a teacup.

First page - https://forums.ybw.com/index.php?threads/hmrc-u-turn-on-tax-on-returning-boats.550718/
Last page - https://forums.ybw.com/index.php?threads/hmrc-u-turn-on-tax-on-returning-boats.550718/page-13
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VAT after Brexit 18 Oct 2020 23:48 #119096

  • Peter Cawson
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I'm naively assuming that my UK registered boat that was built in NL with Dutch VAT paid on completion should be able to remain in the EU without fear of additional tax payments, irrespective of its country of registration or the nationality of its owner

If I was ever to bring it to the UK, I'd anticipate no "double taxation" but wouldn't rely on this. In any event, I anticipate it'll remain in the EU indefinitely.

Now if I apply for Irish citizenship , my boat (if brought to the UK) would be "visiting" and could presumable remain without tax liability, at least for a limited time. It may be need to be taken into international waters once a year.

Peter
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VAT after Brexit 18 Oct 2020 19:00 #119088

  • Chris Grant
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Helen, as Tam says no one really knows but if you consider several DBA member barges that have been in mainland EU for years and are owned and registered with non EU (US, NZ etc) flags, I'm not aware that they have ever been asked to pay taxes as third country owners. So why should UK next year be any different? Bringing a 'foreign' ship into EU next year is a different matter but most continental based member ships have been in EU for years, many built there and Vat paid or considered paid years ago due to grandfather status. Perhaps non EU based members could enlighten us as to whether they fear similar tax raids by COVID hungry tax collectors on the mainland next year.
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VAT after Brexit 18 Oct 2020 18:24 #119086

  • Tam Murrell
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As you say, this has been discussed here recently barges.org/discussion-forum/brexit/26060-brexit-and-vat-returning-boats but the answer is really that no-one knows. If you have no intention of ever bringing your ship to the UK then re-registering as French will obviously avoid the consequences should EU27 countries impose TVA on craft that are effectively imported there, even if they are presently accepted as having paid VAT within the EU. The best guess is that UK registered ships will be regarded as visitors for some period - possibly 6 months, possibly more - so it may not require an immediate decision. By that time things might be clearer.

There would obviously be cost involved in the re-registration process, and if it is <20m (i.e with no ES-TRIN) it might require works to make it conform to French boat safety standards.

Tam
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VAT after Brexit 18 Oct 2020 18:06 #119084

  • Helen Mitchell
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I know there ha s been discussion about VAT on UK registered boats in the EU after Brexit but I am trying to understand the implications of this from the FT today:

''Ms Corkin warned that leaving a vessel in EU waters after 31 December could also cause EU tax liabilities for British boat owners.
This is because the “VAT-paid” status currently enjoyed by British yachts in the EU only applies to EU-flagged craft. And after the UK leaves the EU and customs union, EU authorities may seek to charge VAT and duty on the value of the yacht.
“There may be a double whammy at the EU end if the yachts stay in EU waters,” she said. “With Covid, each of the member states is going to want to fill its tax gaps and will be hunting for areas that are a quick win. And there’s the feeling that people who have a lot of money should be taxed more.”

Is it worth re-registering my UK registered barge as French? I have evidence that VAT was paid when the boat was built (previous owners - they did in fact claim it back but I have the original VAT paid receipt)

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