02 Dec Yacht Deliveries Increase as Brexit VAT Date Looms
Posted at 11:34h
In an ideal world, any yachts that currently qualify for free movement with the UK part of the EU will be grand-fathered in once the transition period ends on 31st December 2020. With a no-deal now looking to be the most likely outcome, this looks highly unlikely.
The main impacts perceived rely heavily on where the yacht is located at the end of this year.
UK yachts in the EU
For UK yachts outside of the UK and in the EU with VAT-paid status; it is generally understood that these yachts will maintain their EU VAT-paid status should they be in the EU and able to prove that on the crossover date.
UK yachts in the UK
For UK yachts remaining in the UK with VAT paid status; they will retain their UK VAT paid status in the UK but will not be able to circulate freely in the EU without either being imported or gaining temporary admission (TA) to the EU in the future.
UK yachts outside of the UK + 3 years
For UK yachts having UK VAT paid status but not been in the UK for the last 3 years; they may stand to lose their UK VAT paid status. If these yachts then return to the UK after the transition date then they may stand to pay VAT again. The HMRC has reportedly said that there is an additional 12-month period (up to 31st December 2021) for these yachts to return to the UK to avoid the second VAT payment, however an official position has not been made.
Similar respective rules stand for EU yachts both in and out of the UK when the transition period ends.
Ports such as Cherbourg have made arrangements for an influx of a British flotilla coming over to spend the transition dates certified in the EU, with formal certification being made available.
Many other coastal French ports are also expecting a much higher number of visitors over the New Year Period.
Yacht delivery packages available now
Halcyon Yachts are available to offer packages to deliver your yacht to the relevant port and gain official documentation as required. With no official position likely to be given before we reach the end of this month, we encourage owners to read into the situation affecting themselves as best you can and make arrangements accordingly.
For further information please see the following sources: RYA: RYA Brexit – What Happens Next
Cruising Association: Brexit Briefing VAT
Financial Times (Subscription required): VAT After Brexit
To discuss the movement of your yacht and available packages please contact us below:
Phil Wood – Sales Manager – +44 (0) 7585 667686
Halcyon Yachts Ltd is a dedicated international yacht delivery and management specialist with highly experienced skippers and qualified crew.