customs warehouse

Selling Your EX-VAT Boat: what you need to know 

One of the benefits of Brexit for non-UK boaters has been the opportunity to utilise the EU’s Temporary Admission Relief to allow the use of a sail or motor yacht in European waters without the vessel needing to hold a VAT Paid Status (VPS). 

It's also worth noting the UK operates the same scheme for non-UK residents sailing their boat to the UK, which allows Channel Island and EU residents to visit our waters in a non-UK VAT Paid vessel. 

the temporary admissions rule

Both the UK and EU schemes have strict qualification criteria and rules that must be adhered to, but they are not overly onerous with the emphasis being on documentation of arrival and departure dates. 

Over the last 3 years we have delivered a number of boats down into the Mediterranean that are successfully utilising Temporary Admission, but now some owners are thinking about changing or upgrading and the restrictions that apply for a boat under Temporary Admission means this needs careful planning.

"Whilst an EU VAT Paid boat is appealing to EU residents, it is less so for UK Residents…  Maintaining the non-VAT Paid status for the listing gives maximum flexibility and will attract the broadest range of potential purchasers."

Under the rules of Temporary Admission (TA) you cannot berth and offer the boat for sale within the EU member states (and the same rule applies to Channel Island boats looking to sell within the UK) whilst that boat is under TA – the act of placing a boat on the market for sale requires a formal import of the boat and the payment of VAT at the applicable rate.

That has a number of drawbacks, the very obvious one being a cashflow impact to you as an owner of somewhere between 19-25% depending on the country of choice! 

Whilst an EU VAT Paid boat is appealing to EU residents, it is less so for UK Residents who may want to take the boat elsewhere, or even continue using TA under their ownership. Maintaining the non-VAT Paid status for the listing gives maximum flexibility and will attract the broadest range of potential purchasers.

There are opportunities to base yourself in one of the non-EU member states such as Gibraltar or Montenegro, but both come with their own problems of access out of peak season, with Montenegro especially difficult to fly to outside of the summer months.

we manage an ex-vat sale for you

Our experience so far is that many owners and EU brokers are not aware of these restrictions or choose to ignore them, but this comes at a risk. If the boat is discovered as being offered for sale within Europe and does not hold the relevant VAT Paid status, you could find yourself as the owner on the receiving end of a large fine and interest on unpaid VAT which will need to be settled in advance of any sale progressing.

With this in mind, Inspiration Marine have secured an approved HMRC Customs Warehouse facility in the UK that enables us to import boats to the UK and hold them for sale in a secure location, without the need for the boat to be either UK or EU VAT Paid.

Depending on the purchaser’s situation and requirements, once a sale is completed the boat can either be released as an ex VAT sale, delivered and imported into the EU where VAT can be formally accounted for by the purchaser, or released into the UK with the new owner paying UK VAT on the eventual sale price.

With our experienced team of Customs Agents, Tax Advisors and Yacht Delivery Specialists, we can help arrange the entire process for you and ensure all the required formalities have been completed and documented.

If you currently have a boat in the Mediterranean or Channel Islands and are thinking of selling, please do get in touch to see how we can help.

Please note that the above article does not constitute specific tax or customs advice and you should seek the services of a professional accountant or tax advisor if you are unsure as to your rights to utilise Temporary Admission or any other financial scheme or relief.


nobody goes further To Sell Your Boat

Our dedicated, friendly ABYA-qualified yacht brokers are waiting to help achieve the best possible market price for your boat. Whether sail or power, we will take the time to present her for sale at her best, get to know her, and ensure she is seen by as many active buyers as possible. For listings at our Hamble Point Yacht Brokers office, our 50m display walkway provides easy access for viewings and surveys all year round.


CALL YOUR NEAREST YACHT BROKERS OFFICE

Hamble
02380 455714


For selling your boat anywhere in England or Europe. 

KIP, Scotland
01475 529975


For selling your boat in Scotland.