Query re buying second-hand boat from UK now that brexit is here

alfa beta

I wonder if someone here can help - I've googled a good bit and found some info but I'm still not clear on tax implications of buying second hand boat privately in UK and bringing it to ireland (ROI)


So scenario is as follows. I've spotted a boat i like on apolloduck. It's in Scotland and priced at £8k sterling. It says 'Tax Paid' in the ad. It's for sale privately, not through a boatyard. It's also on a trailer so if buying I'd trailer it home crossing to NI in ferry and driving down to where i live on the south coast.


So question is this: Are there tax implications on a second hand purchase from UK now that they've left EU? Is there VAT to be paid here (even if there is proof that tax was originally paid when the boat was new in UK) ... And if there is VAT to be paid do I have to add 21% to the advertised €8k price of the boat (that unfortunately would make its purchase unfeasible for me).



I hope someone can help with the practicalities of the situation. As I'd like to know the tax details before getting in touch with the owner.


Thanks for any help - appreciate it :-)

DOCARCH

I believe you have to pay 33% if buying at boat (even second hand) from the UK post Brexit. 23% VAT + 10% tariff.

That applies to Great Britain (England, Scotland and Wales) but not NI, thanks to the Irish Sea border!

alfa beta

wow - that totally rules that out then - that's a shame as the choice in Ire is very limited.


thanks for the reply

fryup

alfa beta wrote: »

that's a shame as the choice in Ire is very limited.

yep

leonardok

Yeah I have a similar question. I am ready to buy the boat since last year. I haven't yet because of travel restrictions.

Is there delivery happening from the UK right now? Do you have any idea when that is going to be allowed again? I've passed on so many boats that I could have closed the deal...

neris

Some marinas aren't allowing in boats from foreign ports including irish owned boats being brought back into the country

drunkmonkey

alfa beta wrote: »

wow - that totally rules that out then - that's a shame as the choice in Ire is very limited.


thanks for the reply

Use a northern delivery company, there appears to be no extra charges, I didn't pay any extra charges except for the delivery free. It came from the UK to North then down to me. I was advised against using an Irish service if it's coming directly to the republic.

alfa beta

drunkmonkey wrote: »

Use a northern delivery company, there appears to be no extra charges, I didn't pay any extra charges except for the delivery free. It came from the UK to North then down to me. I was advised against using an Irish service if it's coming directly to the republic.

That's interesting. Thanks for letting me know. So do you now own a boat here in ROI with proof of vat paid in the UK.



(That would be quite a good position to be in as selling your boat back into the UK would be easy if you ever needed to do that I imagine.)

moving_out

From shoosmiths.co.uk - "If you are a non-UK resident and are considering buying a pleasure craft in the UK but intend to permanently keep it in the EU, you may be eligible to purchase your vessel VAT-free using the Sailaway Boat Scheme. The scheme does not apply to vessels which are for business use or which are exported as cargo and vessels must be exported within 6 months of delivery from the manufacturer or supplier. Local VAT advice should be sought as to whether VAT will need to be paid in the EU export destination."

Does anyone have any more information on the Sailway Boat Scheme (UK)? Is it possible to get the boat VAT-free (both in the UK and Ireland) when using this scheme?

Tabnabs

It applies to boats being taken under their own power, outside the EU.

It applies to supplies made in Great Britain exported out of the UK and to supplies made in Northern Ireland exported out of the UK to non-EU destinations.

Not sure why that crowd are saying otherwise.

https://www.gov.uk/guidance/sailaway-boats-supplied-for-export-outside-the-eu-notice-7032

and full details here
https://www.gov.uk/hmrc-internal-manuals/vat-sailaway-boat-scheme

moving_out

My understanding of this is this - as NI is considered an EU territory for VAT purposes, I would read this quote as:
"It applies to supplies made in:
a) Great Britain exported out of the UK
b) Northern Ireland exported out of the UK to non-EU destinations"

Therefore, if I buy a boat in England and sail it to Ireland, there should be no VAT (in the UK, how about in EI?)

Tabnabs

VSWB provides information and guidelines on the VAT treatment of private pleasure craft supplied to private individuals to be sailed away to a destination outside the European Community (EC).

It should be read in conjunction with VAT Notice 703/2 - Sailaway boats supplied for export outside the EC. This notice specifies the conditions which must be met by suppliers before they can zero-rate the sale and by purchasers intending to personally export the boat from the EC.

https://www.gov.uk/hmrc-internal-manuals/vat-sailaway-boat-scheme/vswb1010

There is no VAT loophole.

drunkmonkey

moving_out wrote: »

My understanding of this is this - as NI is considered an EU territory for VAT purposes, I would read this quote as:
"It applies to supplies made in:
a) Great Britain exported out of the UK
b) Northern Ireland exported out of the UK to non-EU destinations"

Therefore, if I buy a boat in England and sail it to Ireland, there should be no VAT (in the UK, how about in EI?)

My reading of it is that's for export so if you sail into Ireland it's liable for EU VAT and Duty if exported out of the UK Zero vat rated.
I'm not sure it's a loophole but if you buy it as normal get it brought in through NI it's not liable for anything, it's at Irish ports the Duty is being added not NI.