UK boats could lose EU VAT paid status

[Dockhead]

Originally Posted by De.windhoos

Good news for UK boats

That's actually BAD news . It means that my boat will definitely lose her tax paid status in the UK if I have her in France on Brexit day , something I was hoping wouldn't happen. As a non-UK resident, I am not eligible for the RGR regime. Damn.

But I have no choice - I can't lose her EU status, so I will have to sail next weekend unless some miracle happens this week.

[Montanan]

Originally Posted by Dockhead

That's actually BAD news . It means that my boat will definitely lose her tax paid status in the UK if I have her in France on Brexit day , something I was hoping wouldn't happen. As a non-UK resident, I am not eligible for the RGR regime. Damn.

But I have no choice - I can't lose her EU status, so I will have to sail next weekend unless some miracle happens this week.

Any reason to go sailing sounds like good news to me. And to do such so as to retain EU tax paid status and thus avoid a future tax liability, well heck, that is two good things wrapped as a gift in what otherwise is a bureaucratic SNAFU. Life being a glass more than half full.

Now does the plentiful stock of Scotch and Irish whiskey and French wines onboard the yacht also retain VAT paid status when crossing the border, or does one need to drink up so as to avoid import and VAT anew, that is the additional noteworthy question regarding BREXIT.

I hear worries about a hard exit potentially making for supply chain difficulties and delays, so I'll be headed to the town's liquor store to stock up on UK goods.

Why didn't they schedule BREXIT for April 1st, given that is Fool's Day?

[Dockhead]

Originally Posted by Montanan

Any reason to go sailing sounds like good news to me. And to do such so as to retain EU tax paid status and thus avoid a future tax liability, well heck, that is two good things wrapped as a gift in what otherwise is a bureaucratic SNAFU. Life being a glass more than half full.

Now does the plentiful stock of Scotch and Irish whiskey and French wines onboard the yacht also retain VAT paid status when crossing the border, or does one need to drink up so as to avoid import and VAT anew, that is the additional noteworthy question regarding BREXIT.

I hear worries about a hard exit potentially making for supply chain difficulties and delays, so I'll be headed to the town's liquor store to stock up on UK goods.

Why didn't they schedule BREXIT for April 1st, given that is Fool's Day?

Ha, ha. Yes, of course -- having to do an impromptu cross-channel, and to FRANCE, is kind of a throw-me-in-that-briar-patch situation. I love Cherbourg, have sailed there scores if not hundreds of times, and have many fond memories.



However, I will be sailing almost constantly starting 1 April and I hate to lose my chance to get work done on the boat.


We shall see!

[TwoHooter]

What are the road haulage companies, light aircraft owners, airlines, ferry companies, cruise ship lines etc. doing? Anybody know?

[Kenomac]

Originally Posted by Dockhead

Ha, ha. Yes, of course -- having to do an impromptu cross-channel, and to FRANCE, is kind of a throw-me-in-that-briar-patch situation. I love Cherbourg, have sailed there scores if not hundreds of times, and have many fond memories.



However, I will be sailing almost constantly starting 1 April and I hate to lose my chance to get work done on the boat.


We shall see!

Just be glad you don’t have to sail 800 miles on a last minute surprise VAT savings excursion like we did last September, how far is your trip? 30 miles?

[Dockhead]

Originally Posted by Kenomac

Just be glad you don’t have to sail 800 miles on a last minute surprise VAT savings excursion like we did last September, how far is your trip? 30 miles?

Cowes to C-bourg is about 75 miles each way, out the Solent then almost due South from the Needles, a nice day sail in good weather.


800 miles? From where to where?

[Kenomac]

Originally Posted by Dockhead

Cowes to C-bourg is about 75 miles each way, out the Solent then almost due South from the Needles, a nice day sail in good weather.


800 miles? From where to where?

San Giorgio Di Nogaro Italy to Montenegro then back to San Giorgio Di Nogaro.

[CatNewBee]

Originally Posted by TwoHooter

What are the road haulage companies, light aircraft owners, airlines, ferry companies, cruise ship lines etc. doing? Anybody know?

They are crazy about Brexit, they sail all day long back and forth to retain tax status on both sides. Quite busy in the channel, also the trains in the tunnel below, going all day in between.



Either way, stock up on Scotch and Irish Whisky for the Brexit party, regardless of the outcome.

Someone will celebrate with you, that is the great thing in a divided nation, there will be a party on one of the sides and the other side will need alcohol too.

[Dockhead]

Originally Posted by Kenomac

San Giorgio Di Nogaro Italy to Montenegro then back to San Giorgio Di Nogaro.

Ah, that was not "VAT preservation", that was resetting the 18 month TI clock. Right. Must have been a fun trip.


Why was that a "surprise"? You knew about the 18 months, didn't you?

[Kenomac]

Originally Posted by Dockhead

Ah, that was not "VAT preservation", that was resetting the 18 month TI clock. Right. Must have been a fun trip.


Why was that a "surprise"? You knew about the 18 months, didn't you?

No, more like Brexit. Italy changed the rules regarding customs bonding, so instead of allowing 3.5 years with a customs bond scheme, with only a few weeks notice, we had to move the boat instead of having it placed in a customs bond. Had I not called to have the boat placed in bond, the time limit would have expired in the middle of winter. It was a surprise even the Italian shipyard didn't know about.

[Dockhead]

Originally Posted by Kenomac

No, more like Brexit. Italy changed the rules regarding customs bonding, so instead of allowing 3.5 years with a customs bond scheme, with only a few weeks notice, we had to move the boat instead of having it placed in a customs bond. Had I not called to have the boat placed in bond, the time limit would have expired in the middle of winter. It was a surprise even the Italian shipyard didn't know about.

Oh, I see! Sounds like a PITA.

[Chantal]

Can anyone shed any light on the Brexit impact on a a UK British boat currently in Turkey. Is the position effectively the same as if she were in UK waters at the time of Brexit, ie she will be reclassed as non-union and so liable to either a second payment of VAT on entering EU waters or the 18 month rule?

Any advice would be gratefully received.

Thank you

[De.windhoos]

Originally Posted by Chantal

Can anyone shed any light on the Brexit impact on a a UK British boat currently in Turkey. Is the position effectively the same as if she were in UK waters at the time of Brexit, ie she will be reclassed as non-union and so liable to either a second payment of VAT on entering EU waters or the 18 month rule?

Any advice would be gratefully received.

Thank you

My advise would be to hop over to Greece for a couple of days and officially check in.

[Dockhead]

Originally Posted by Chantal

Can anyone shed any light on the Brexit impact on a a UK British boat currently in Turkey. Is the position effectively the same as if she were in UK waters at the time of Brexit, ie she will be reclassed as non-union and so liable to either a second payment of VAT on entering EU waters or the 18 month rule?

Any advice would be gratefully received.

Thank you

I have no idea.


However, I have just heard that EU boats owned by EU residents will ALSO lose their Union goods status, if they are in UK waters on Brexit day.


Scary stuff!


And now, four days before the date, we STILL don't know whether it's going to happen or not.


I did not sail to France over the weekend, feeling certain optimism that there would be an extension, but now I'm wondering whether I made the right decision. I have to fly out tomorrow on business and it will be hella difficult for me to get back to get the boat out of here in time, in case this extension doesn't materialize

[Chantal]

Full Response received today from the EDCC...

In summary, ALL UK registered boats NOT in EU waters (ie in UK, Turkey, Caribbean etc) on Brexit date will lose their Union Status and will thereafter if owned by non EU residents, be subject to the Temporary Importation Rules restricting the time the boat is allowed to stay in the EU to 8 months , and 0 months is the owner is also EU resident, eg British Nationals who now have tax residency in Spain/France etc.

I cannot comment on Union boats in the UK as I didn't ask that question specifically, but it is my understanding that if a EU boat is in the U on Brexit they too lose their Union Status.

Hope this helps! Here's hoping Friday is extended!!!

"Thank you for contacting the Europe Direct Contact Centre.

Where the recreational boat has been released for free circulation at import in the EU or has been manufactured in the EU, it has obtained the customs status of Union goods.

After the UK's withdrawal from the EU, any goods in the customs territory of the UK will lose their Union status and will become UK goods. The customs status of a UK boat will depend on its location at that point in time: if the boat is located in an EU port or sails in EU territorial waters, it will keep its Union status; if the boat is located in the UK (or elsewhere), its status will be that of a third-country boat when arriving in the territorial waters of the Union, i.e. it will be treated as non-Union goods. Customs controls for such UK boats will be the same as for boats coming from a third country. This was also mentioned in a Brexit preparedness note from the Commission, published on 30 January 2018: https://ec.europa.eu/info/sites/info...axation_en.pdf.

In relation to how a proof of Union Status of goods can be provided, the legal basis is in Article 199 of the Commission Implementing Regulation (EU) 2015/2447. In general, the following means of proof appear most suitable for leisure boats prior to the deployment of the Proof of Union Status system: a paper T2L or an invoice or transport document for goods with a value above EUR 15,000. For more details, please refer to the e-learning module available at the Commission's website on taxation and customs: https://ec.europa.eu/taxation_custom...common/elearni ng/07-ucc_customs_status_of_goods_en.pdf."

Following the Brexit preparedness notice mentioned above, a specific notice on VAT was published on 11 September 2018: https://ec.europa.eu/info/sites/info...ddedtax_en.pdf