The general rule in the UK is that if the yacht has increased in value since the date of purchase by the seller VAT will be due on the amount by which the value has increased even if VAT was previously paid on the purchase of the yacht and has not been reclaimed.

Uk yacht vat. Naturally boats owned by UK residents which are VAT paid and sitting within UK waters as at 23h00 hours on Thursday 31 st December 2020 will be accepted as VAT paid in the UK. VAT when buying a used boat The Association of Brokers and Yacht Agents recommends that its members should obtain the relevant paperwork from the vendor before listing a yacht as being VAT paid. The buyer will be liable to pay any VAT due.

Ad Bare boats or crewed yachts Bavaria Lagoon Beneteau Jeanneau Fountaine Pajot. Owners who bought their vessels in the EU that have not been located in the UK during their current ownership will have to pay UK VAT on their boat if they want to bring it back to the UK even if they have paid EU VAT. British boats thrown lifeline over double VAT after Brexit The amount of VAT yacht owners could face runs into thousands of pounds depending on the market value of the vessel when it returned to.

UK VAT paid yachts in the EU Yachts that are UK VAT paid will no longer be able to circulate freely in the EU from 1 January 2021. TA Temporary admission granted to visiting boats from third countries for up to 18 months. 400 yachts available for sailing in 26 bases around the world.

Ad Bare boats or crewed yachts Bavaria Lagoon Beneteau Jeanneau Fountaine Pajot. We strongly advise that you get in touch with your marina or harbourmaster and get written confirmation that your boat was on her berth in the UK at this time. RATS has asked the EU Commission for clarification of this issue and is waiting for their response.

The latest from UK HMRC states that a UK-flagged boat which left the UK must return before 30 June 2023 if the owner wishes to claim Returned Goods Relief RGR and retain the UK VAT paid status of the boat. VAT must be paid at 20 on all new vessels purchased in the UK by UK residents where the vessel is to be kept in the UK. The EU Commission has said that yachts located in the UK at the end of the transition period on which VAT was originally paid in an EU27 country may be entitled to an exemption to VAT payment if they enter the EU post-Brexit as returned goods.

In theory UK VAT is payable upon arrival in the UK unless the vessel qualifies for operation under the UK rules for Temporary Admission or if the vessel qualifies for a customs relief such as Return Goods Relief Inward Processing Relief or Transfer of Residence Relief. However the general understanding is that UK VAT paid yachts that are located in the EU at this date will keep their Union status and will continue to be regarded as being VAT paid in the EU. 400 yachts available for sailing in 26 bases around the world.