Onderwerp: VAT on Boat Bought from England

Hello,
I am hoping that since this is a local Dutch site that someone here will know.
I have an opportunity to buy a boat from England but was warned that there will be VAT tax even though the boat was built before 1984 and has always been in England. The reason stated is that the pre-1984 VAT exemption no longer applies since England is no longer in the EU.

Is this true?

I didn't think so because Canada was for example never in the EU, but if I'm not mistaken Canadian boats built before 1984 are still exempt from VAT.
Thanks in Advance

Are you planning to bring to boat to the EU?

I think you can best ask (Dutch) customs about this. It would be quite costly to rely on an answer from someone from Zeilersforum that might be wrong…

As Reinier suggests, go to the source: BelastingTelefoon Douane: 0800 - 0143
It is a toll free nummer, if dialed within the Netherlands.
Good Luck.
JB

It would be helpful if you could prove the age of the boat. Do you still have documentation, like old invoices etc?
Anyway, it is perhaps easier to mail them. I've sent you their address by PM

Gepost met de officiële Zeilersforum-app

If you buy the boat in the UK want to permanently import into the EU as an EU citizen you will have to pay VAT no matter how old the boat is , VAT is calculated on a the amount stated on the bill of sale

Since you mention Canada I am assuming you are Canadian ?

As a Canadian you can buy a non-vat paid boat in the UK (you’re not a UK resident) and get 18 months in the EU without having to pay VAT , if you are a Brit you pay vat in the UK and get the same 18 months in the EU

If you are an EU resident you can buy vat free in the UK and you will have to pay vat when entering the EU vat zone

But to answer the question in more detail we need to know 1) residency 2) sail area 3) passport country

The 18 month period can be reset by taking the boat out of the EU vat zone for a day and return (keep proof that shows you were elsewhere , marina bill etc)

Winston Smith schreef :
That’s a misconception: It doesn’t matter where the boat was build. It matters that the boat was imported into the EU at some time and probably import tax was payed and when sold to the first owner the owner payed VAT. If that moment was before 1985 and the boat wasn’t exported to outside of the EU then no proof of that the VAT was payed is needed.

However the boat in the UK is at the moment probably imported in the UK, so went outside of the EU VAT region (automatically due brexit). So the build date doesn’t matter, you always need to pay VAT when importing her to the EU.

Orange Sunset schreef :
Well thanks for all the replies.
But I'm still a little confused.
Because the UK used to be in the EU!

The boat in question is a Westerly. Build in England, always lived in England.
Was an 'EU boat' before 1984.
Was an 'EU boat' until last year.

So what now? I can't bring her to The Netherlands without paying tax again?

I would very much like to buy an English boat because they are such fantastic value.
Especially compared to Dutch boats.
Now many Dutch boats are very nice.
But they are extremely overpriced compared to boats from well... anywhere else!

Take any boat from say 1979.
It's repowered with a modern Yanmar or Volvo freshwater cooled engine.
It's had new standing rigging 6 years ago.
It has a new Genoa sail from last year.
New refrigeration compressor this year.
Cockpit enclosure.
Arch with solar panels, inverter, multiple new batteries etc etc.
It's 25,000 Euros.

The exact same make and model of boat sold in The Netherlands:
Original engine with unknown hours.
Original standing rigging.
15 year old sails.
'Coolbox' because compressor broke a decade ago and was never replaced.
No dodger, no cockpit enclosure.
No arch, no solar, no inverter. 10 year old batteries.
It's 25,000 Euros.

OUCH!
Buying a boat in The Netherlands is extremely expensive.

I'm just looking for a reasonable work around. Because this local market is straight up silly.

Winston Smith schreef :
No. The boat was in Britain on 31 January At 11 p.m. GMT (Brexit), therefore the boat is no longer an EU boat.

If what you describe is true (difference between Dutch and UK offerings for 25k euros), it might be worth it to but a UK boat and simply pay the VAT and be done with it.

Winston,you are barking agains the wrong tree, call Johnson.
The EU had worned the british extensivly.

JB

Evaluationcopy schreef :
Yeah, you may be right!

JB-NL schreef :
That bastard Johnson I can never get him on the line! He always ghosts my calls...
Haha- yeah, I guess it all remains to be seen how this whole messy Brexit affair affects both sides of the channel. Hopefully both sides are better off, but unfortunately things rarely work out that neatly.

Menno schreef :
Well Mr. 666 has been so kind as to provide me with the email address to the Belastingdienst, and to whom I have sent a message. I'm hoping they have made some sort of allowance for this situation, but I'm not holding my breath. I guess we'll have to wait and find out.

Winston Smith schreef :
100% chance that you will need to pay the VAT, your scenario is explicitly documented The boat was automatically exported from EU to the UK on 31 January At 11 p.m. GMT (Brexit) if it was in the UK at that time.

Only chance is that you can proof it wasn't in the UK at that time and it hasn't been imported into the UK after that date. But there should be some proof. But that also means the owner should have records of clearing in the boat in the UK.

Already both sides are not better off.....we 'd love to have you back, guys

Winston Smith schreef :
“ Because the UK used to be in the EU!”

And here you answered your own question

Right now GB is a ‘3rd’ country , like the US , Canada , Turkey whatever and anything bought there and imported into the EU is liable for VAT

AndreAzuree schreef :
Yeah that makes two of us!

Not the least right now

So it turns out folks here were universally correct.

The response from the Belastingdienst is as follows:
"Boat from England you pay 21% VAT over the value on the day of import.
Boat from Ireland you need a invoice which shows Irish VAT on it, no further costs."

So thanks again for all the responses. Now I know what 'premium' to factor into UK boats.