BREXIT and new import – N-reg or EASA-reg?
What will be the consequences of Brexit for new N Reg imports? The reason I’m asking is because I’m already thinking of upgrading to a retractable and might ferry something over from the US. I might possibly want to base it in the UK.
All speculation. Wait 3 more years and you can be certain.
But if you buy it now, VAT will have been paid within the EU. If that means that you can sell it to a EU country after Brexit is effective without having to pay VAT in Europe, at least it opens up a much wider market when time comes to resell it.
WhiskeyPapa wrote:
I’m already thinking of upgrading to a retractable and might ferry something over from the US.
Why bother since most can be had here in Europe for less than US prices and that’s with VAT paid.
@Michael
You may be right. More choice across the pond, but I’m in no hurry & can probably find what I want here. Not sure about planes being cheaper here though (however if you add-on VAT to the US prices, they probably are).
But if you buy it now, VAT will have been paid within the EU. If that means that you can sell it to a EU country after Brexit is effective without having to pay VAT in Europe, at least it opens up a much wider market when time comes to resell it.
That’s a good point, but the point is that you are paying the import VAT, whereas if you live in a non-VAT country (say Jersey) then you don’t pay the VAT so the plane is 20% cheaper to you.
So, assuming that upon you selling it (a) you make a full honest disclosure to the buyer and (b) the buyer is a smart person who reads EuroGA and thus knows about import VAT 
there is no difference because in a non-EU and non-VAT UK you will have saved the 20% and you will get that much less for it when you sell it, so it balances out.
The only time there is a difference is when selling to a VAT registered body in which case a non-EU based owner will benefit by the 20% and the buyer will not ask for the 20% discount because he is reclaiming the VAT.
So a non-EU non-VAT base seems a win/win to me, unless I am missing something.
BUT will a post-Brexit UK still have VAT? I am 100% sure it will and thus nothing will change at Brexit from this POV.
The UK cannot abolish VAT – too many social issues. In fact one good intellectual argument is to abolish income and corporate taxes and load the lot onto VAT, because that avoids tax evasion, since everybody needs to spend money 
That won’t happen either, for the same social reasons. But it would remove about 500k civil servants…
There is a residual difference in that with a non-EU UK, a G-reg will be regarded in the same light as an N-reg (etc) is today, in mainland Europe. It may thus be preferentially targeted by the French police, though those checks are very rare anyway (if you avoid Biarritz LFBZ where they have the training school).
Why bother since most can be had here in Europe for less than US prices and that’s with VAT paid.
Sure; not worth ferrying unless it is a ~150k+ plane. Also a prebuy is a huge hassle and you will be under massive “fait accompli” pressure to buy it. Most people who travel significantly (an airline flight, etc) to do a prebuy end up buying the plane regardless, and that is assuming they actually know what to look for…
Peter wrote:
Sure; not worth ferrying unless it is a ~150k+ plane. Also a prebuy is a huge hassle and you will be under massive “fait accompli” pressure to buy it.
Great use of French Peter !
What are you looking for ?
Looking for UL of 1000 lbs and 150 knots in cruise. Want to be able to land on grass. Like high wing, but am more concerned about aircraft condition. So the list is 182RG, 210, Debonair, Beechcraft… etc. Happy to buy something without an upgraded panel and do so in my own sweet time.
This process will not begin seriously until May-June if it does. I have a plane which gives me no problems, but it is slow (105 knots) for the traveling we do. So an upgrade is not really necessary, but fun to think about.
Sounds like a Centurion would fit the bill to a T .
Just so happens that I know of a 210L that will soon be on the market @ 80K€
Post -Brexit is there a risk that the EU will consider that an aircraft with VAT paid in the UK, even now, would require VAT to be paid (again) in the EU if the airplane was sold to say France in say five years from now?
That’s why if I were to import a US aircraft now I would pay the VAT in France (or some other EU state)….on the basis that it is more likely that the UK would not require VAT to be paid again post-Brexit….
Does that make sense?
