Peters & May urge boat owners to think Brexit and VAT
Marine transport and logistics provider, Peters & May, is reminding UK boat owners with vessels outside the UK that, as the Brexit transition period comes to an end, the rules determining boats’ VAT status will be subject to change.
The latest information available from HMRC is that, from 1st January 2021, the rule that yachts must return to the UK within three years of having last left the UK/EU in order to be entitled to Returned Goods Relief (RGR) on duty and VAT will be strictly enforced.
“Whether RGR is applicable will be dependent on it not having undergone any repairs whilst outside the EU that increased its value when it last left the UK/EU and the amount of time it has been overseas, the date of its reimport into the UK and whether the place from where is it returning is inside the Customs Territory of the EU,” says Adam Towgood, sea freight and customs manager. “In order to claim the VAT relief element of RGR, it must also have not changed ownership since it last departed. Where a boat does not meet RGR criteria, duty and VAT will be payable to HMRC upon reimport.”
HMRC has recently announced the grant of a 12-month extension exclusively for boats that are currently within the EU, having departed the UK before 31st December 2017. These now have until 31st December 2021 to be reimported to the UK and claim RGR.
“To ensure that there is no VAT payable to HMRC on the reimportation of their boats we are urging UK boat owners to take early action. Owners need to be aware of the dates of their boats’ movements and time away from the UK and act accordingly to claim Returned Goods Relief,” says Towgood.
Peters & May says it has availability on sailing schedules from the Med which will arrive in the UK before the end of December 2020. The company says an integral part of its yacht transportation service is the completion of complicated paperwork on behalf of the owner.