Here's something that might surprise you… buying a boat in Europe after Brexit could mean paying 20% VAT twice.
If you're thinking about purchasing a vessel abroad, you'll want to understand what changed when the Brexit transition period ended on 31 December 2020. The reality is that British boat buyers now face some genuine challenges – you're limited to just 90 days in any 180-day period in EU waters, and the VAT implications can be quite complex.
That said, buying a boat in France after Brexit or elsewhere in Europe is absolutely still possible. You just need to plan properly.
What you really need to know…
The VAT situation has become a big issue. With both the UK and EU charging 20%, there's a real risk of paying tax twice if you don't understand the regulations. But here's the thing – options do exist to avoid this. Temporary Importation, for instance, allows EU boats to stay in UK waters for up to 18 months without triggering additional VAT.
We've put together this guide to help you understand exactly what's changed and how to make your European boat purchase as straightforward as possible. While the rules have certainly got more complicated, your dream of owning a boat shouldn't have to end there.
Understanding post-Brexit boat buying rules
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Where your boat was on 31 December 2020 matters more than you might think…
The end of the Brexit transition period created a dividing line that still affects boat ownership today. If your vessel was in UK waters on that date, it has certain rights and obligations. If it were in EU waters, it would have different ones entirely.
How Brexit changed boat ownership in the EU
Before Brexit, things were straightforward. Once you'd paid VAT anywhere in the EU, your boat could move freely throughout European waters with "Union goods" status. That system no longer exists.
Now we have two separate VAT territories, and boats located in the UK at the end of the transition period lost their EU VAT-paid status. Similarly, vessels in EU waters lost their UK VAT-paid status.
Here's how it works now:
- UK VAT-paid status (if they were in UK waters on 31 December 2020)
- EU VAT-paid status (if they were in EU waters on that date)
- Neither (requiring VAT payment in whichever territory they enter)
There's another consideration for UK-flagged boats – they can lose their VAT-paid status if kept outside UK waters for three years. This means many British owners need to think carefully about where their vessels are registered and where they're kept.
New rules for UK citizens buying in France, Spain, or Italy
Each country handles things slightly differently, which can work to your advantage if you understand the options.
France offers some flexibility. Mechanisms exist for zero-rated exports and Temporary Admission (TA) without physically leaving French waters. This can simplify the process considerably.
Italy takes a stricter approach. Italian authorities generally require boats to make landfall in a third country before returning under TA. It's more bureaucratic, but still manageable.
Spain provides interesting opportunities for non-EU residents. British buyers may avoid both VAT and Mat tax provided they don't keep the vessel in Spanish waters for more than 6 months annually. Of course, UK VAT would still apply if you bring the vessel to British waters later.
Here's something worth knowing… UK citizens can purchase and use boats in EU waters without paying VAT through Temporary Admission. This allows you to keep vessels in EU waters for up to 18 months without VAT payment. When this period expires, taking the boat outside EU waters for just 24 hours resets the clock.
Why VAT status matters more than ever
The days of "dual" VAT status are over. With both territories charging 20%, you're looking at potential double taxation. Imagine purchasing an EU VAT-paid boat and bringing it to the UK – you'd face UK VAT on arrival, essentially paying tax twice.
Documentation has become essential. You must carry evidence of your vessel's VAT status and its location on 31 December 2020 whenever you're sailing. For boats built before 1985, proving VAT status gets more complex, though vessels in circulation before 31 December 1992 may have special provisions.
Returned Goods Relief (RGR) can help…
This offers a route to avoid double taxation in certain circumstances. HMRC updated their guidance in January 2022, and boats returning to the UK can now qualify for RGR regardless of how long they've been away, provided they were previously in the UK under the same ownership.
Our advice? Think carefully about where you'll actually use your boat before you buy. If it's primarily for UK waters, buy in the UK with UK VAT paid. If you're planning to cruise mainly in European waters, EU VAT paid status or Temporary Admission arrangements might work better for you.
Taxes, VAT & Customs – What you need to know
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The tax side of boat purchases has got considerably more complicated since we left the European Union. If you're a British buyer looking at vessels in Europe, understanding your VAT obligations isn't optional anymore – it's essential.
What is Returned Goods Relief (RGR)?
Returned Goods Relief is potentially your best friend when it comes to avoiding double taxation. This mechanism lets boat owners reimport their vessels to the UK without paying additional Customs Duty and VAT. But there are conditions: the boat must have been in the UK previously under your current ownership, and you're bringing it back for personal use. The vessel can't have had more than "running repairs" while abroad that increased its value.
Here's the good news: HMRC made a significant change on 1 January 2022 when they scrapped the three-year condition for RGR on recreational boats. This means if your boat was previously based in the UK under your ownership, you won't be charged UK VAT again when it returns. However, if you bought and kept a boat in the EU that's never been in the UK under your ownership, you'll still face UK VAT.
There's one crucial catch – if ownership changed while the boat was abroad, RGR becomes unavailable since it must return under the same ownership.
How to prove UK VAT-paid status
Proper documentation isn't just helpful anymore – it's mandatory. UK residents using pleasure craft in UK waters must be ready to show evidence of their vessel's age, location and VAT status. This applies whether you're the owner, operator, or just authorised to sail the vessel.
What counts as acceptable proof:
- Original invoices or receipts showing VAT payment
- Evidence that VAT was paid at importation
- Invoices for materials used in home-built vessels
A word of warning – your registration document alone won't prove VAT status. There's no connection in the UK between the vessel registry and VAT payment. Many yacht owners have been casual about keeping VAT receipts over the years, which has now become a serious problem.
For older boats manufactured before 1985 and present in the EU on 31 December 1992, proving their location has become particularly tricky. Many ports simply don't keep records from that era anymore.
When you might face double VAT
Double taxation is a real concern now. If you're a UK resident with an EU VAT-paid pleasure craft that was in EU waters on 31 December 2020, bringing it into UK waters triggers VAT and import duty on the vessel's current value.
It gets worse if you sell a boat while it's abroad – the new owner faces import VAT if they bring it to UK waters. The Cruising Association has challenged these regulations with HMRC and HM Treasury, calling them "manifestly unfair".
The picture for pre-owned EU VAT-paid boats has become significantly more restrictive. UK buyers of EU boats may face VAT on importation to the UK. Sometimes it's possible to structure the purchase so the current owner 'imports' the boat into the UK, claims RGR, then completes the sale.
Temporary Importation explained simply
Temporary Admission (TA) offers UK citizens a genuine opportunity to buy and use boats in EU waters without paying VAT. The rules are straightforward:
- Your vessel can't stay in the EU for more than 18 months
- Private use only – no commercial activities like chartering
- You must be a non-EU resident
Here's a useful trick: you can reset that 18-month "clock" by taking your vessel outside EU waters for just 24 hours, provided you keep documentary evidence like marina receipts. This creates a practical solution for long-term European cruising without VAT liability.
The TA regime kicks in simply by entering EU territorial waters. For extended stays, an "oral declaration" through a local Customs agent is recommended. You can then show this documentation throughout the EU during your travels.
Registration and compliance for UK buyers
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Registration and legal compliance have become far more important for British boat buyers since Brexit. Get these right from the start and you'll save yourself time, money, and potential headaches down the line.
UK Part I registration and what it covers
Part I registration with the UK Ship Register acts as your vessel's official identity document – think of it as a passport for your boat. The cost is £153 for a five-year period, with renewals at £72.
A Part I registration gives you some significant advantages:
- You can get a marine mortgage against your vessel
- You're allowed to spend more than six months outside the UK
- You'll receive consular assistance and diplomatic protection
- You can fly the prestigious Red Ensign
There's another important benefit many people don't realise. Part I registration provides legal proof of ownership, unlike the Small Ships Registry (Part III), which doesn't. When you're buying a second-hand boat and need to establish clear ownership, this distinction becomes particularly valuable.
CE vs. UKCA marks: what to check
Initially, the UK planned to require UKCA (UK Conformity Assessed) marking for all boats after Brexit. Fortunately, the government announced in August 2023 that it would indefinitely accept CE marks as proof of conformity for recreational craft. This prevents duplicate certification costs for manufacturers and buyers alike.
The technical requirements for both marks are virtually identical, but you'll need to understand the differences when:
- Buying a CE-marked boat in Europe for UK use
- Purchasing a vessel manufactured after January 2023
- Dealing with boats that have undergone modifications
Worth noting: for marine equipment (like safety gear) manufactured after January 2023, the Red Ensign mark became mandatory for use on UK vessels.
Do you need a Post Construction Assessment?
A Post Construction Assessment (PCA) becomes necessary in several scenarios, primarily when:
- Buying a non-CE marked boat for use in UK waters
- Purchasing a vessel without a proper manufacturing conformity assessment
- Importing a boat that needs UKCA certification
The PCA process means appointing an authorised RCR Inspector or Notified Body to examine your vessel, review technical documentation, and verify compliance with safety and environmental requirements. This isn't just bureaucracy – it ensures your vessel meets essential safety standards for fuel systems, electrical installations, and structural integrity.
Understanding these registration and compliance requirements will make your boat buying experience much smoother, whether you're purchasing in the UK or abroad.
Practical tips for buying abroad
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Once you've got your head around the regulations, the real work begins – finding the right boat and getting it home safely. Success really comes down to working with the right people and knowing what to look for.
Finding a broker you can trust
You'll want an English-speaking broker who understands both UK and EU regulations inside out. The best ones have networks throughout Europe and can clarify those local interpretations of rules that might catch you out. Look for professionals affiliated with recognised associations – they're worth their weight in gold when things get complicated.
A good broker will make sure your contract is in English and enforceable under English law. Trust us, if something goes wrong, you'll be grateful for that protection.
Why you absolutely need a marine surveyor
We can't stress this enough – never buy a boat overseas without a proper marine survey. A thorough pre-purchase survey covers everything from hull integrity and engine condition to all the onboard systems and safety kit.
It's not just about finding problems before you buy (though that's important). The survey often becomes your best negotiation tool. Many insurance companies and lenders actually insist on one before they'll cover or finance your vessel. Choose a UK surveyor from a recognised organisation like YBDSA who specialises in your type of boat.
Should you inspect remotely or travel to see the boat?
Remote inspections have come a long way since 2020. Using live-streaming technology, surveyors can witness inspections while the boat's crew carries out the necessary checks. This saves unnecessary travel and still gives you comprehensive data.
That said, there's still value in seeing a boat in person – you get a better feel for the vessel and can build rapport with the people involved. Often the best approach combines both methods.
Getting your boat home
If sailing the boat back to the UK isn't practical, specialist marine transport services can move your vessel safely by road, rail, sea or air. Before transport begins, arrange proper Goods in Transit and Marine Insurance. These policies cover damage during transportation plus any business interruption costs.
What happens once your boat reaches UK shores
This is where it comes into its own. With over 45 years in the business, we at Fox's Chandlery know exactly what boat owners need when they get their vessels home. Our 7,500 square foot store stocks over 10,000 products from the leading marine brands.
Whether you need maintenance products, deck hardware, foul weather gear or safety equipment, our experienced team provides the technical support and advice you'll need. We've become something of a destination for boat owners and cruisers, many of our customers have been with us for decades, and we pride ourselves on offering great value backed by genuine expertise.
Sorting out the paperwork – Common mistakes to avoid
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Paperwork can make or break your boat purchase in post-Brexit Europe. We've seen too many buyers get caught out by missing documents or incomplete records, so here's what you need to watch out for.
When VAT documents go missing
Many yacht owners have been pretty casual about keeping VAT receipts over the years, and that's become a real problem now. If your vessel doesn't have proper VAT documentation, don't panic – there are alternatives you can explore.
For boats manufactured before 1985 and in the EU before 31 December 1992, deemed VAT-paid status applies. The challenge is proving it, especially as many ports no longer keep records from that era. Some brokers will accept a statutory declaration witnessed by a solicitor stating legal ownership if you can't find the original VAT proof.
Just remember – a registration certificate alone won't prove VAT status. There's no link in the UK between vessel registry and VAT payment, so you'll need something more substantial.
Getting to the bottom of ownership history
Establishing clear ownership history takes some digging, particularly with European vessels. If the boat's registered in the Small Ships Register or Part One Registration, request a historical transcript.
Italian boats can be especially tricky due to their non-centralised registry system – you might need to contact over a hundred port authorities personally. And here's something we see quite often: wealthy owners sometimes register vessels to leasing companies, which complicates ownership verification even further. Always ask for proof that the seller is the legal owner with the right to sell.
Why do you need to keep those marina receipts
Marina receipts have become crucial evidence for determining where your boat was on key dates. If you're claiming EU VAT-paid status because your vessel was in EU waters on 31 December 2020, those receipts are essential proof.
Log books and receipts also show that a boat hasn't left EU waters, which helps maintain VAT-paid status. Under Temporary Admission, you'll want to maintain a proper log of arrival and departure dates with documentary evidence to prove you're staying within the 18-month limit.
Getting through customs without the headaches
A bit of preparation goes a long way here. Double-check all your documentation for accuracy – even small mistakes can cause significant delays. Keep an organised system for your paperwork with a dedicated folder containing all current documentation that's easily accessible.
We'd recommend being proactive with customs about any unusual circumstances or special requirements. It's much better to address potential issues before they become problems – officials appreciate transparency. And stay informed about changing regulations through government advisories and cruising guides.
The bottom line…
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Brexit has certainly made boat buying more complicated, but it hasn't made it impossible.
What we've covered in this guide shows that while the rules have changed significantly since 31 December 2020, there are still plenty of opportunities for British boat buyers who know what they're doing. The key is understanding the new reality and planning accordingly.
The VAT situation is probably the biggest headache you'll face. But once you grasp the basics - where your boat needs to be, what documentation you need, and how things like Temporary Admission and Returned Goods Relief work - it becomes much more manageable.
Our advice? Don't go it alone.
Working with professionals who understand the cross-border complexities will save you time, money, and potentially serious headaches down the line. A good broker who knows both UK and EU regulations, combined with a qualified surveyor, is worth their weight in gold.
Yes, there's more paperwork now. Yes, you need to be more careful about where your boat was on that crucial Brexit date. And yes, you'll need to keep better records than many boat owners used to.
But here's the thing - many owners are actually finding they know more about their boats now than they ever did before. All this attention to documentation, compliance, and maintenance requirements? It's making for better-informed, more prepared boat owners.
The dream of European cruising isn't over.
British sailors are still out there enjoying Mediterranean summers and exploring those beautiful coastlines we've always loved. You just need to chart your course a bit more carefully these days.
And when you do get your boat sorted and ready for those adventures? Well, that's when places like Fox's Chandlery come in handy - we've been helping boat owners get properly equipped for over 45 years, and we're still here to help you make the most of whatever waters you choose to sail.
