N reg in UK, VAT post Brexit

[Sam Rutherford]

I think this deserves it's own thread, rather than the EASA-Brexit one.

So - are we likely to see a rush of people importing and paying their UK VAT on their N register machines before Brexit? The assumption is that VAT paid before the split means it won't be asked by EU countries after the split - but...?

Then, importing post Brexit - UK VAT is still to be paid (if based in the UK) but the EU might be after you if you spend too long with your machine in the EU?

Or vice versa?!

Hmmmmmm?

[md 600 driver]

Sam
Everyone I know has already paid the vat on their n reg machines when they arrived in the country

[Sam Rutherford]

My question is:

Post Brexit, how freely will an N-reg be able to fly in the EU?
If imported post Brexit, same question (if different answer, will it be worthwhile quickly importing before Brexit happens)?

Not suggesting anyone has the answer, but some may have seen indicators of what might happen?

[TheOddOne]

There's a superb article by Cliff Whittaker who was Head of Licensing and Training Policy at the CAA, in the latest edition of a popular flying training newspaper. Ask at your local RTF/ATO - they should have a copy.

Whilst he cannot give a positive answer as no-one else can until the politicians decide, he does explain in excellent clarity the various options. Anyone who runs a flying training organisation or who has a pilot licence should read this. He does, however, say that if you fly microlights, you'll be entirely unaffected by any of it!

TOO

[PaulisHome]

More generally, what will happen to buying second hand aircraft from the continent, if and when we leave the EU?

AIUI we will no longer be part of the common VAT regime. So does that mean that imports will be due UK VAT (as I think they would be from the US) - even though EU VAT will have been paid?

"It will be easy" they said.

Paul

[Jonzarno]

As far as flying an N reg in the UK goes: I presume ICAO rules would apply

On VAT: I guess you would reclaim European VAT when exporting the aircraft and pay UK VAT on the importation, assuming that VAT still applies to used aircraft as is currently the case. Lots of productive work for even more civil servants :p

Of course, that assumes that the idiots running the process don’t come up with something even dafter.... :rolleyes:

[md 600 driver]

For permanent imports If you was to be importing from the EU to Uk you would not be paying VAT, just like purchases from non EU country’s now ,but you would have to pay UK vat on import to Uk

But if the Uk decides on having some sort of customs union it maybe business as usual

Short term visiting aircraft use ICAO rules now and would presumably still use the same process

[gordon field]

For permanent imports If you was to be importing from the EU to Uk you would not be paying VAT, just like purchases from non EU country’s now ,but you would have to pay UK vat on import to Uk

But if the Uk decides on having some sort of customs union it maybe business as usual

Short term visiting aircraft use ICAO rules now and would presumably still use the same process

ICAO recommendations have nothing to do with Customs or Tax regulations.

[PaulisHome]

For permanent imports If you was to be importing from the EU to Uk you would not be paying VAT, just like purchases from non EU country’s now ,but you would have to pay UK vat on import to Uk

But if the Uk decides on having some sort of customs union it maybe business as usual



For new aircraft, I agree. But what about second hand aircraft? In this case, the VAT would have been paid in the EU. If it's then bought and imported, is VAT due? It would be, AIUI if it was coming from the US - so presumably it will be from the EU if we leave the common VAT area. In that case, the effect will be to raise aircraft prices in the UK.

Paul

[Danny42C]

AFAIK, we had to impose VAT as a condition to joining the EU (we thought we were just joining a "Common Market") in 1972.

So if we leave the EU, presumably we could abolish VAT (dream on !), and replace it with the Purchase Tax we had before ?

Perhaps: "Hold on to Nurse - for fear of meeting Something Worse"" is the best policy.

Danny (ex-VATman 1973-1986).