Brexit: VAT on boats outside the UK – Urgent Update by CA

My CAHeadlines by Cruising Association:

'Boats in EU may have to pay UK VAT on return

The CA understands that HMRC may be considering changing the interpretation of VAT rules so that, after the Brexit transition period, all boat owners established in the UK whose boats have been in the EU for the last three years or longer will pay VAT for a second time if they want to bring their boats back to the UK.'

'The RYA and British Marine issued a joint statement on 1st October 2020 setting out some important changes by HM Revenue and Customs (HMRC) in their approach to the VAT status of British-owned yachts that are located outside UK waters at the end of the Brexit transition period on 31 December 2020. An informal clarification has subsequently been made by HMRC on 14 October.'

'The RYA and British Marine understand that yachts located outside UK waters on 31 December 2020 and which subsequently return to the UK will be subject to Returned Goods Relief (RGR) requirements, and that this will only be available for goods returning to the UK provided that RGR conditions are met, including the requirement that the goods must have been exported from the UK and return within three years of export.'
 

Full article on the Cruising Association website: www.theca.org.uk

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