How the Brexit affects the navigation and flag on the territory

The complexity of the international legal environment, and the variations that are produced continuously as a result of international agreements or political and commercial conflicts, makes the operation and administration of a superyacht extraordinarily complex.

Of course, with the services of SCS Yachting, both the owners and the representatives can be calm and dedicate themselves only to enjoy.

The panorama today

Still, it is essential to know, in moments like the one we are living, what is the impact, for example, of Brexit on the regulatory environment that affects a superyacht.

The United Kingdom leaves the EU: as of 23:00 UTC on January 31, 2020. The United Kingdom is no longer a member of the EU.
The United Kingdom and the EU ratified a withdrawal agreement, which means that we enter a transition period during which Union law is applicable in the United Kingdom, except where otherwise stated in the withdrawal agreement.
The EU will treat the United Kingdom as if it were a Member State, except for the United Kingdom’s participation in the EU institutions and governance structures.
The United Kingdom remains both in the EU Customs Union and in the Single Market during the transition period.
Freedom of movement will continue to apply to United Kingdom nationals during the transition period, so there will be no restrictions on how much time you can spend in the EU.

2020 and beyond

A very important aspect to take into account are tax obligations, specifically the payment of VAT.

If yacht owners are citizens of the United Kingdom, or vessels are registered under the flag of the United Kingdom, they must assume that the United Kingdom will no longer be part of the EU VAT system and will therefore be treated as a jurisdiction from a third country from a VAT and Customs perspective:

Yachts imported into the UK might remain in free circulation or lose their status after Brexit; or after their first move to non-EU waters.
Yachts with VAT paid under the UK VAT system might lose their VAT paid status.
Yachts owned by UK residents can be used under Temporary Importation within the EU.
Yachts acquired by UK residents from EU shipyards can be acquired without paying VAT.
Yachts owned by UK companies and used for charter business in the EU might need to be re-imported after Brexit to continue their charter operation.

British Marine, the yachting professionals’ union in the United Kingdom, invites its members to prepare for all eventualities and is mobilizing for negotiations.

What impact will Brexit have on the marine industry across the Channel in 2020 and beyond?

While negotiations in recent years have become accustomed to turnarounds, many observers are skeptical about the possibility of an agreement before the end of 2020.

British Marine thus invites its members to prepare themselves for the eventuality of a hard Brexit and a return to the application of the rules of the World Trade Organization.

At the same time, the favorable exchange rate for the pound sterling could be an advantage for UK-made boats and equipment, the marine industry, like other industries, risks being penalized by a heavy reliance on supplies from the EU, which may be taxed on importation.

From SCS Yachting we can manage everything related with the flags and legislation, so you only dedicate to enjoy.

For more information please contact:

Agency@scsyachting.com