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Advice on buying selling yachts for ocean cruiser

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John Franklin
Posts: 132


4/29/2013
John Franklin
Posts: 132
That is essentially my understanding of the situation having consulted the RYA Legal Team and major UK brokers. Just one addition to the "three year" condition - the vessel must not have been chartered or used commercially.

My own UK VAT-paid boat has been out of the UK and EU for 11 years, but in my ownership since leaving. I 'll be bringing her back this summer and consequently testing the waiving of the 3 year rule! Fingers crossed.
John

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John Franklin
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archive
Posts: 0


4/29/2013
archive
Posts: 0
A VAT PAID YACHT RETURNS TO THE EU UNDER DIFFERENT OWNERSHIP- VAT LIABILITY?

I am attempting to determine the EU VAT status of a yacht presently in the Far East prior to putting in an offer to purchase it. A yacht broker friend operating in the UK has stated that there will be a fresh VAT liability on this vessel when it returns to Europe. Being forwarned I investigated further. The RYA site didn 't really cover my predicament and the HMRC site was mind-blowing and so I contacted the RYA Legal team who sent the following:

If a vessel has been outside the EU and returns with three years VAT will not be imposed on re-entry provided the following is met:
- The boat has remained in private possession

- The same person returning to the EU exported it outside the EU

- No major alterations have been made to the vessel outside the EU, beyond maintenance and repair.

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In fact HMRC are on record as waiving the three-year limit, if the above points can be established.

The fact that the boat was bought by a person outside the EU, may well have triggered a VAT liability upon re-entry into the EU. If the sale had occurred between two private owners within the EU there would have been no VAT due and the EU VAT paid earlier would still hold good.

One option, if returning to live permanently in the EU having lived outside for a minimum period of 12 months, and provided the boat has been in the new owner’s private use for 6 moths prior to returning, you can claim VAT relief on the asset under a transfer of residence scheme.

If the above does not apply VAT will be payable on entry into the EU.

END

So OK, what about the paper and financial TRANSACTION being entirely within the UK, without a sniff of the Far East? I am awaiting a reply to this question.
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John Franklin
Posts: 132


6/11/2012
John Franklin
Posts: 132
Have you looked at the RYA website; they have done a lot of work on various aspects of VAT on boats and if you can 't find what you want in their published infromation, you can always email them a direct query.

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John Franklin
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RobbieW
Posts: 24


4/18/2012
RobbieW
Posts: 24
I 'm in the same position but I do have a letter from the owner in 1992 saying she was in the UK and Part 1 registry since build. The most consistent advice I 've seen on YBW forums is to carry your bill of sale - assuming that shows a private UK purchase, it demonstrates to other EC countries that this is a UK VAT matter.

What happens if the EC falls apart over the next few years is anyones guess
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chriswallace
Posts: 1


4/17/2012
chriswallace
Posts: 1
Our boat is an aged Westerly Conway which we bought in 2008.
She is now in Seville and we plan to take her into the Med this summer. We want to take her in and out of the EC – for example in and out of Tunisia, Croatia, etc. However, we are concerned that we have no proof of VAT status. This has not been a problem up until now, but we assume that in the Mediterranean with non-EC countries around, it may become one.
We understand we need to prove that the boat was built before 1985 and also where she was on 31 December 1992. We can do the first, as we have the old style registration document showing the chain of ownership. However, we have no way of proving where she was on 31.12.92. – although we believe she was in the UK.
At the time we bought the boat we investigated the position - HM Customs were unable to offer any assistance at all. Obviously we should not have got ourselves into this situation in the first place, but wonder whether there might have been any change in the regulations, or if anyone can offer any ideas?
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