13 Dec 2018 11:25 | Anonymous member (Administrator)

T2L before Brexit?

What is a T2L?:-   

VAT has been payable on all boats sold in the EU since 1993, or deemed ‘VAT paid’ for older boats without a VAT certificate.   Goods in one EU country can move freely across EU borders without liability for further VAT or import tax and such ‘Union Goods’ qualify for an EU 'T2L' document that proves goods have this status.   Boats without a VAT certificate are vulnerable to Temporary Importation where it must leave the EU within 18 months or pay VAT on it's prevailing market value.

After Brexit:-  

Vessels bought in the UK after Brexit on March 29th may be liable for EU VAT on entering the EU for more than 18 months.  HMRC will likely no longer issue or validate T2L documents, although may do so during any transition period.   It is assumed that vessels paying VAT in the UK before Brexit will be accepted by the EU as EU VAT paid, but proof may be needed.

Why you need a T2L:-

It is worthwhile obtaining a T2L document if planning to keep your boat in the EU for more than 18 months, or to sell it in an EU country.  It might also be useful to demonstrate to HMRC that the vessel is UK VAT paid when returning to the UK after a period abroad, preferably within 3 years to avoid losing it's VAT-paid status.   The Cruising Association strongly advises all members who own boats where VAT has been paid to obtain a T2L in good time before the Brexit date, and to act without delay.

How to get a T2L document:-

Contact HMRC during office hours on tel: +44(0)300 200 3700 and ask for a C88 (Status) Form - only page 4 is needed, or contact the RYA if a member.   Once completed it should be posted to HMRC, together with copy of VAT payment (usually an invoice or receipt from the builder or importer) and boat registration [Part 1 or III (SSR)].   Include a stamped, self-addressed envelope.  HMRC have so far returned the form with a stamp of approval relatively quickly and without charge.

Instructions on how to complete the form (courtesy of the Cruising Association) can be found here.


  • 09 Jan 2019 08:31 | Anonymous member (Administrator)
    I have a T2L it came back in 5 days even using 2 nd class post. I used the HIN rather than SSR, because it is more permanent being moulded into the hull and it is also on the builders certificate and original VAT invoice.
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