Brexit: Possible VAT issue

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Richard Readings
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Joined: Wed Aug 14, 2019 1:15 pm
Boat Name: Flapjack
Southerly Model: Southerly 32
Location: Poole

Brexit: Possible VAT issue

Post by Richard Readings »

A fellow club member has forwarded the attached article from the Hallberg-Rassy Owners Club. Have any Southerly owners come across this issue?

One new document we already know about is proof of where your boat was at the time of the end
of the Brexit transition period: 2300 on 31 December 2020. The RYA has already said that it is
essential to have this on board as it will affect the Customs and VAT status of your boat. Without it,
there is a distinct possibility of being charged VAT again! Many marinas and clubs are now
producing certificates, but do be sure that it includes at least the following information:
Boat name
Boat length
Make and model
Hull Identification number (HID) Registration details (eg, SSR number)
And get it stamped and signed by the issuing authority.
Note: the owner's name should not be included as the certificate will last the life of the boat,
regardless of change of ownership.


Do we need to follow this up?

Richard
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ncampling
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Boat Name: Dutch Courage of Cowes.
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Re: Brexit: Possible VAT issue

Post by ncampling »

Richard

Thanks for posting this.

There is certainly a "Brexit VAT issue" brewing. There is much on the CA & RYA websites about this, and many of have made representations to our MPs regarding the problems of bringing VAT paid boats back from an EU27 country after 31 December 2021.

That rules around that problem (Returned Goods relief) may be amended, and I (or others) will of course post anything as soon as I/we hear about it.

For boats in the UK at 31 December 2020, I would definately obtain some proof of location at that date, and keep it with the VAT papers onboard.
Nigel Campling
Chairman, SOA
Richard Readings
Posts: 128
Joined: Wed Aug 14, 2019 1:15 pm
Boat Name: Flapjack
Southerly Model: Southerly 32
Location: Poole

Re: Brexit: Possible VAT issue

Post by Richard Readings »

There is an interesting, and relevant, article in March issue of Yachting Monthly: "Post-Brexit bureaucracy for boat owners sailing to an from the UK"
Richard
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ncampling
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Re: Post Brexit VAT issues for boating

Post by ncampling »

The following has been issued by the RYA in connection with the ongoing post Brexit VAT position of HMRC. There is a budget this week, I will be checking the paperwork that it is issued with it vary carefully :

RYA and British Marine challenge HMRC's post-Brexit plans for private pleasure craft
February 25, 2021

Ongoing lack of clarity from HMRC threatens a disastrous ripple effect across the pleasure boating sector and the marine industry, warns RYA and British Marine.
Since well before the Withdrawal Agreement was ratified at the beginning of 2020, the RYA and British Marine (BM) have been working to establish what the future holds for recreational boaters now that the transition period has ended and to clarify what measures the Government intends to put in place for VAT, import duty, Returned Good Relief (RGR) and Temporary Admission (TA).

RYA and BM have over many months endeavoured to engage with various HMRC policy teams to provide sector knowledge and experience to address the issues of concern and develop workable guidance. They have this week written to the Chief Executive of HMRC calling for a holistic approach from the Department and reconsideration of fundamental issues that are increasingly presenting adverse impact for private pleasure boaters, the second-hand boat market, and the UK marine industry as a whole. The letter outlines the key principal issues and offers workable solutions.

The letter seeks reconsideration of the one-year period of grace granted in October 2020 by HM Treasury in respect of the three-year condition for RGR, which fails to understand the many factors that affect the repatriation of vessels, including, global pandemic travel restrictions, the Schengen area immigration restrictions, insurance restrictions and the length of sailing season. RYA and BM believe an extension to 3-years is needed to recognise this and the restrictions of the ongoing Covid-19 pandemic.

Incorrect advice was provided by HMRC on VAT relief in April 2019 and again on 3 November 2020; this was only corrected on 17 December 2020; this has resulted in boat owners having insufficient warning that they would be liable for VAT on import from 1 January 2021 if they had never owned their boats in the UK. The RYA and BM believe that it is unreasonable for the Government to take its citizens and residents out of the EU and not let them repatriate their boats to the UK as part of the ‘withdrawal package’. This penalises UK citizens and residents unnecessarily due the ‘one size fits all’ approach that has been taken to replicating EU returned goods relief in UK law and does not recognise the freedoms we had as EU citizens.

The letter also calls for HMRC to make clear what the status is of boats that were lying in Northern Ireland at the end of the transition period and what the reporting requirements are for boaters to satisfy the protocol on Ireland/Northern Ireland.

Howard Pridding, RYA Director of External Affairs, said: “Following months of dialogue with officials and exchanges with ministers at HMRC, we are now appealing directly to the Chief Executive of HMRC to bring coordination to urgently address the outstanding issues and deliver clear and unambiguous guidance that we can share with our members.

“Up until 31 December 2020, UK nationals have used their boats in Europe, travelling around EU27 countries, exercising their right to freedom of movement and complying with Union goods and VAT requirements. Boat owners do not see their boats as goods that have been exported and imported. They are personal possessions that they have used as a means of transport to travel in a private capacity.”

Lesley Robinson, CEO at British Marine, commented: “The fact that UK citizens will not want to bring their vessels back to the UK to sell them due to the risk of having to pay VAT, thus creating a situation where all second-hand boats coming from the EU will be 20% more expensive, will have a dramatic impact not only on boat sales in the UK, but more importantly on jobs. Our latest letter sets out a reasonable and sensible solution to the situation and, alongside the RYA, British Marine will continue to represent the best interests of our members and the marine industry.”
Nigel Campling
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ncampling
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Boat Name: Dutch Courage of Cowes.
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Re: Brexit: Possible VAT issue

Post by ncampling »

RYA and British Marine welcome extension to Returned Goods Relief grace period

https://www.rya.org.uk/newsevents/news/ ... dium=email


This will help those in the EU whose boats are "local" to the UK, but maybe not enough for those in the Eastern Mediterranean. Doubt will still remain over whether the old "exceptional" circuamstances can be claimed, and whether our boats were, in fact, "exported" when we left. Nonetheless the extension is good news as it takes the short term pressure off, and allows more time for the doubts and queries to be resolved.
Nigel Campling
Chairman, SOA
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