The European Commission has clarified its guidance on the treatment of recreational craft under EU customs and VAT rules.
The publication of the guidance follows engagement by the European Boating Industry (EBI) and European Boating Association (EBA), which have called for clearer, more practical and harmonised interpretation of EU customs rules affecting recreational craft.
The clarification has been welcomed by the two industry bodies which have stated that tax issues have created uncertainty for boat owners and businesses, particularly in cross-border cruising, second-hand boat sales and vessels returning to the EU after time spent abroad.
The Commission guidance confirms that pleasure craft used within the EU are generally presumed to have the customs status of Union goods and there is no general requirement to prove Union status every time a boat returns to its berth.
A boat registered outside the EU may be subject to more customs controls.
The guidance also confirms that the nationality or residence of the owner and the country of registration or flag of the boat, do not in themselves determine whether a boat has Union status.
In addition, it provides explanations on proof of Union status and other customs and VAT questions.
Greater certainty
The EBI and EBA say the new guidance represents an important step towards greater certainty for boat owners, dealers, marinas and the wider recreational boating sector.
“We are pleased the European Commission has recognised that recreational boat users need clearer guidance,” said Carol Paddison, EBA secretary.
“Although it doesn’t address the longstanding issue of missing paperwork, the document published by the European Commission provides welcome clarification which could enable more consistent application of customs and VAT regulations across EU member states.”
Philip Easthill, secretary-general of EBI, said the guidance addressed several long-standing questions for recreational boating.
Outstanding issues
“Clearer interpretation of customs and VAT rules is essential for boat owners, businesses and authorities alike,” he said.
“There are however still outstanding issues that need to be clarified to ensure a pragmatic approach for boating across all regions, such as long-distance cruising outside the EU.”
And he added that the second-hand market is an important part of the recreational boating sector and the tax clarifications will support many practical concerns to improve the operational environment.
Improving the framework for the second-hand market is also a long-term asset for the new boat market, added Philip.
The EBI and EBA warn that the guidance is not legally binding and practical implementation may still vary between member states.
