UK: VAT and Customs Clarification for Recreational Boaters Post Brexit
Following the UK’s withdrawal from the EU, one of the biggest issues for the leisure marine sector has been the VAT status of recreational craft at the end of the transition period.
Published 4 years ago
Key Scenarios
The Royal Yacht Association (RYA) has reported that the group put forward key scenarios affecting boaters and received a response from the European Commission which validated the interpretation of the guidance and how VAT should be applied under the various examples.
The RYA said the five organisations had together agreed to release the guidance to members and non-members.
The positive confirmation of the scenarios should now also be recognised by each EU country in their dealings under this matter. Failure to do so could result in formal complaints being made to the Commission. Further clarification will be sought from the European Commission on the documentation required and interpretation of establishment of “person established in the customs territory of the Union.”
Commenting on the collaboration, Philip Easthill, Secretary General of the EBI, says; “We are delighted to have received the responses from the Commission that companies and boaters urgently need. Given the impact of Brexit on businesses and supply chains, clarity on VAT for second-hand boats is highly important.
Lesley Robinson, CEO of British Marine, said; ” The answers to these scenarios will be welcomed in particular by UK boat retailers and brokers to assist in maintaining a healthy trade of second-hand boats across the UK and EU.”
To read the details of the Scenarios on Post-Brexit VAT interpretation released by the group, go to the RYA website.
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Related Links:
Related News:
- Brexit: What are the exceptional circumstances to avoid paying boat VAT again? (Yachting Monthly with the CA – May 2021)
- UK: Boat Owners to Benefit from Extension to Returned Goods Relief Grace Period (March 2021)
- UK Boat Owners Left Stranded in Europe due to Government Inaction (October 2020)
- Brexit: VAT on boats outside the UK – Urgent Update (CA 5 October 2020)
- Keeping your Yacht in Greece after Brexit: A Simplified View (June 2020)
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The opinions expressed in this article are the author’s own and do not reflect the view of Noonsite.com or World Cruising Club.
Related to the following Cruising Resources: European Union