Ireland could see an influx after Christmas of visiting boaters from Northern Ireland seeking to secure the VAT and duty status of their vessels as the Brexit transition period ends.
The suggestion comes after the UK’s Royal Yachting Association earlier this week welcomed “greater clarity” on the position of the customs status of boats from the European Commission.
As previously reported on Afloat.ie, British boaters resident in the UK and the EU alike have feared being left in limbo regarding the tax and duty status of their vessels — and facing hefty charges when selling on or even relocating across territories.
The situation could still see a depression of the used boat market in Great Britain as EU-based buyers may be dissuaded by significant import levies.
Addressing UK boaters’ concerns, Howard Pridding, the RYA’s director of external affairs, said: “The Commission is no longer saying that any boat lying in the UK at the end of the transition period will not be eligible for Returned Goods Relief (RGR) as the boat will not have been exported.
“Instead they have differentiated the advice based on where the boat is registered and where the owner is established.
“The Commission’s interpretation of the law provides important guidance, but the final decision on what actually happens when a boat is imported rests with the authorities in the country in which that import is taking place.”
Pridding also noted the European Commission has confirmed the RYA’s suspicions “that documentation (such as a T2L, customs opinion letter or other supporting documentation) issued by the UK before the end of the transition period will not be valid in the EU as of the end of the transition period.
“However, we would recommend that boat owners keep hold of such documents, as they may provide useful evidence of the boat’s history and could be helpful when dealing with customs authorities in the EU27 in the future,” he added.
Meanwhile, as talks continue, it’s also expected that UK boats in the EU will be given a year’s grace to return to Great Britain before losing their UK VAT-paid status.
The situation is less clear for boats currently lying in Northern Ireland, as the implementation of the Northern Ireland Protocol is still under negotiation.
Nevertheless, a source close to Afloat.ie has suggested Ireland might now “expect to see a lot of Northern Ireland boats” and even boats from Wales “come [to the Republic] after Christmas to be in the EU” and then return to Great Britain in the New Year in the hopes of retaining their current VAT and duty status.
