Collaboration between leading leisure marine representative bodies yields positive confirmation on post-Brexit VAT interpretation | News | News & Events | RYA

Following the UK’s withdrawal from the EU, there have been many questions which have brought about confusion and uncertainty for the leisure marine sector each within the UK and within the EU27. Arguably, the largest has been across the VAT standing of leisure craft on the finish of the transition interval.  

In an unprecedented declaration of unity, the International Council of Marine Industry Associations (ICOMIA), European Boating Industry (EBI), European Boating Association (EBA), British Marine (BM) and the Royal Yachting Association (RYA) joined forces to supply clarification on VAT and customs for leisure boating firms and customers. Showing the worth of cooperation and membership organisations, the 5 organisations have taken the distinctive choice to launch this steerage to members and non-members.

The group put ahead the important thing situations affecting boaters and are happy to verify that the Commission has now responded, validating the interpretation of the steerage and the way VAT ought to be utilized below the assorted examples. This follows a push led by the EBI with the European Commission to supply this vital clarification. For the unique doc, please contact the collaborating organisations.

The positive confirmation of the situations ought to now even be recognised by every EU nation of their dealings below this matter. Failure to take action might end in formal complaints being made to the Commission. Further clarification might be sought from the European Commission on the documentation required and interpretation of firm of “individual established within the customs territory of the Union.”

Commenting on the collaboration, Philip Easthill, Secretary General of the EBI, says; “We are delighted to have obtained the responses from the Commission that firms and boaters urgently want. Given the influence of Brexit on companies and provide chains, readability on VAT for second-hand boats is extremely vital. The cooperation of EBI with our companions has been key and we are going to proceed to advocate for readability on VAT points by means of our channels at EU degree.”

Lesley Robinson, CEO of British Marine, mentioned; “Collaboratively working along with different leisure marine trade bodies is a extremely profitable means of collectively garnering outcomes, and this current readability obtained on VAT points post-Brexit will significantly profit British Marine members and the UK leisure marine trade. The solutions to those situations might be welcomed particularly by UK boat retailers and brokers to help in sustaining a wholesome commerce of second-hand boats throughout the UK and EU.” 

Udo
Kleinitz, Secretary General of ICOMIA, added; “The trade
is affected by the modifications in VAT regime by means of lack of boaters expenditure in
marinas and tourism. Our members have requested us for assist on this matter which
is why the collaboration with EBI, BM and the consumer organisations helps in
elevating the profile and relevance of the subject with the relevant companies.”

VAT points post-Brexit: FAQS

The following acronyms are used: 

TPE = The time at which the transition interval ended – 31 December 2020, 23:00 UTC 

VPS = VAT Paid Status: i.e. in free circulation

EU28 = EU earlier than TPE, i.e. together with UK

EU27 = EU after TPE, i.e. excluding UK

GB = England / Scotland / Wales excluding Northern Ireland

TA = Temporary Admission

RGR = Returned Goods Relief

UCC = Union Customs Code  

The Union Customs Code referred to inside this doc could be discovered here.

 Scenario  Impact on VAT Paid Status (VPS)

 Scenario 1

  • GB
    owned/registered pleasure craft
  • In
    free circulation (VPS) inside EU28 pre-TPE and has supporting documentary
    proof)
  • Within EU27 as at TPE

 ✓ EU VAT Paid Status

The boat retained EU VPS standing.

 Scenario 2

  • GB
    owned/pleasure craft
  • In
    free circulation (VPS) in EU28 pre-TPE (and has documentary proof)
  • Within
    an EU27 as at TPE
    Boat leaves EU27 (for GB or elsewhere) after which
    returns to the EU27

 ✓ RGR & EU VAT Paid Status

Boat is eligible to RGR on return to the EU27 and can
have EU VPS, supplied that every one the situations established in Article 203 UCC
are fulfilled and, for VAT, that the boat is imported by the identical one who
exported it.

 Scenario 3

  • EU27
    owned/registered pleasure craft
  • EU28
    VPS pre-TPE (and has documentary proof)
  • In
    EU27 as at TPE
  • VAT
    paid on authentic new buy in GB a lot of years in the past
    Subsequent possession and placement inside the EU27

 ✓ EU VAT Paid Status

The boat retains its Union standing and it’s due to this fact in
free circulation with EU VPS.

 Scenario 4

  • GB
    owned/registered pleasure craft
  • Business
    owned
  • EU
    VPS earlier than TPE
  • In
    EU27 as at TPE
  • Kept
    and used inside the EU27
  • Long-term
    lease to particular person for personal use
    GB VAT accounted for on annual lease cost

 ✓ EU VAT Paid Status

According to the knowledge supplied, the boat has
Union standing and retains it except the boat is taken exterior the customs
territory of the Union.

 Scenario 5

  • GB
    owned/registered pleasure craft
  • Owner
    is ordinarily resident in GB
  • Using
    boat inside EU27 on TA
    Owner has an EU27 vacation property the place they preserve the
    boat moored (of their title)

 ✓ Temporary admission

An individual is established within the customs territory of
the Union if he/she fulfils the situations established in Article 5(31) UCC. If
the individual shouldn’t be established within the customs territory of the Union, then
he/she will declare the boat for short-term admission if it has non-Union customs
standing.

 Scenario 6

  • GB
    or EU27 owned/pleasure craft
  • In
    free circulation inside EU28 pre-TPE (and has documentary proof)
  • No
    proof of getting been within the EU27 beforehand; or Ownership
    has modified because it was final within the EU27
    In GB as at TPE

 EU VAT Paid Status Lost

Article 203 UCC requires proof of a earlier export
to the UK. The Commission steerage signifies that, within the absence of an export
declaration, proof of the earlier motion of the boat to the UK is
required. If the boat has by no means been in EU27 it’s unimaginable to supply
proof of motion to the UK.

 Scenario 7

  • EU27
    owned/pleasure craft
  • In
    free circulation inside EU28 pre-TPE (and has documentary proof)
  • Had
    beforehand been evidenced as being inside the EU27 inside the final three years
  • In
    GB as at TPE
    Same proprietor who introduced it out of EU27, returned to the
    EU27 inside three years of departure

 ? Documentation required

It is for the Member State to
determine whether or not the situations for RGR is feasible (Article 203 UCC) are met.
Article 203 UCC requires proof of a earlier export
to the UK. The Commission steerage signifies that, within the absence of an export
declaration, proof of the earlier motion of the boat to the UK is required. Member State
authorities should due to this fact assess whether or not that passable proof could be
supplied on this situation.

 Scenario 8

  • GB
    owned/pleasure craft
  • In
    free circulation inside EU28 pre-TPE (and has documentary proof)
  • Had
    beforehand been evidenced as being inside the EU27 inside the final three years
  • In
    GB as at TPE
    Same proprietor who introduced it out of EU27, returned to the
    EU27 inside three years of departure

 ? Documentation required

It is for the Member State to determine whether or not the
situations for RGR (Article 203 UCC) are met. Article 203 UCC requires proof
of a earlier export to the UK. The Commission steerage signifies that, within the
absence of an export declaration, proof of the earlier motion of the boat
to the UK is required. Member State authorities
should due to this fact assess whether or not that passable proof could be supplied in
this situation.

If you’re a RYA member and have any questions relating to this or some other present affair points, please go to the Current Affairs page on the RYA web site or e mail: [email protected]

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