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
|
✓ EU VAT Paid Status The boat retained EU VPS standing. |
|
Scenario 2
|
✓ RGR & EU VAT Paid Status
Boat is eligible to RGR on return to the EU27 and can |
|
Scenario 3
|
✓ EU VAT Paid Status
The boat retains its Union standing and it’s due to this fact in |
|
Scenario 4
|
✓ EU VAT Paid Status
According to the knowledge supplied, the boat has |
|
Scenario 5
|
✓ Temporary admission
An individual is established within the customs territory of |
|
Scenario 6
|
EU VAT Paid Status Lost
Article 203 UCC requires proof of a earlier export |
|
Scenario 7
|
? Documentation required
It is for the Member State to |
|
Scenario 8
|
? Documentation required
It is for the Member State to determine whether or not the |
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].
