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Since Brexit, the lack of a proper trade agreement means I will have to pay import VAT on my little sailboat when I take her to France.

I asked on a UK boating forum for some recommendations for a tax advisor to assist with the process. The overwhelming answer was, “just do tax evasion. You probably won’t get caught”.

This may provide an insight into the mindset of British exceptionalism.

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in reply to Sarah Brown

Sarah Brown
Sarah Brown
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Still haven’t found a tax advisor. I’m just going to email the customs office at Cherbourg and be like, “help! How do I give you money?” but with more Google translate into French.
in reply to Sarah Brown

Sarah Brown
Sarah Brown
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Like, I got an A in GCSE French but that was 3 decades ago and learning Portuguese has pushed it out.

Chupacabra 78704 reshared this.

in reply to Sarah Brown

: j@fabrica:~/src; :t_blink:
: j@fabrica:~/src; :t_blink:
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This is what everyone (US) says we should do to pay our child minder. People are terrible.
in reply to Sarah Brown

David Gorton
David Gorton
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it may be that the lack of a process derived from a belief in France that no one will actually do this - not just British exceptionalism but human cynicism?
in reply to Sarah Brown

wrack
wrack
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If you're a non-EU resident, your boat can usually remain in EU waters untaxed for 18 months (even if you, as a 'third country' national have only 90 days in every 180). And this period restarts at 0 when you leave European waters and return. Or are you becoming an EU resident? In which case, look at re-registering under a Polish flag before you arrive in EU waters — easy and not expensive.
in reply to Sarah Brown

wrack
wrack
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Then perhaps look into re-flagging the boat as Polish. Or you can set up a cheap, non-trading, shell company in the UK and register it as the yacht's owner on Part 1 of the full ships registry. The company can then give you a letter noting that you are its skipper and responsible for its management and payment of any debts.
in reply to wrack

Sarah Brown
Sarah Brown
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@wrack According to the customs official I have been speaking to, VAT is payable in Portugal, where I’m resident, regardless of the flag of the vessel.
@wrack
in reply to Sarah Brown

wrack
wrack
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Thus the suggestion to register its British owner as a shell company — cheap in the UK. Or re-flag Polish, where for the time being, the VAT status of the vessel is not required to be specified.
in reply to wrack

Sarah Brown
Sarah Brown
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@wrack So your suggestion is to do tax evasion because I probably won’t get caught?
@wrack
in reply to Sarah Brown

wrack
wrack
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Avoidance and legal, in the case of using a British company to register a vessel. I did note, the use of the Polish flag (what they call a grey registry) is a question mark but commonplace in Spain and Portugal for both tax and licensing reasons.
in reply to Sarah Brown

wrack
wrack
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And, for precision, I'm suggesting them as avenues to explore (as I did when I re-registered my own boat as British, Part I, as a not-resident-anywhere Australian).
in reply to wrack

Sarah Brown
Sarah Brown
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@wrack AIUI, where the vessel is flagged is irrelevant for VAT paid status. I’m resident in Portugal. I can’t claim temporary import. The boat is not VAT paid in Portugal. They will want their money.
@wrack
in reply to Sarah Brown

wrack
wrack
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I'm not being clear. If the boat is registered to a British shell company, it is not *your* boat but belongs to a British-based entity. Your status as a resident has no bearing. So the company can claim it
a temporary import. I'm sorry if I'm being annoying. I shall stop here.
in reply to wrack

Sarah Brown
Sarah Brown
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@wrack Difficult to be a temporary import when it lives in a marina in the Algarve.

You’re doing the thing. You’re suggesting tax evasion. I don’t want to do tax evasion.

@wrack
in reply to Sarah Brown

wrack
wrack
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[sigh] I am suggesting avoidance, which is absolutely legal.
in reply to wrack

Sarah Brown
Sarah Brown
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@wrack Except a few months ago there was a story in the local press where they impounded and boat and fined the owner for exactly this sort of pissing about with shell companies.

Please, I’m begging you, read the room.

@wrack
in reply to Sarah Brown

wrack
wrack
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The latter solution is, unarguably, 'grey' — however, you will see numerous Spanish and Portuguese boats with Polish flags (this also avoids the requirement for skippers of registered Portuguese, Spanish and Italian yachts to hold certifications of competence — effectively, licenses — issued by those countries).
Unknown parent

Sarah Brown
Sarah Brown
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The boat is already UK VAT paid.

Portugal does charge more VAT, but they will value the boat less, so swings and roundabouts.

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