European Boating Industry (EBI) and European Boating Association (EBA) welcome the publication of the European Commission’s Guidance Note for Pleasure Craft. The guidance provides much-needed clarification for recreational boat owners and business on the treatment of recreational craft under EU customs and VAT rules.

The publication follows continued engagement by EBA and EBI, which have consistently called for clearer, more practical and harmonised interpretation of EU customs rules affecting recreational craft. These issues have long 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 guidance represents an important step towards greater certainty for boat owners, dealers, marinas and the wider recreational boating sector.

The Commission guidance confirms several key principles of importance to the boating community, including that pleasure craft used within the EU are generally presumed to have the customs status of Union goods. There is no general requirement to prove Union status every time a boat returns to its berth. However, a boat registered outside the EU may be subject to customs controls more often according to the Guidance. It 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. This is a key clarification for a cross-European boating market in which ownership, registration and berthing arrangements frequently cross borders. The document also provides explanations on proof of Union status and other customs and VAT questions

Carol Paddison, Secretary of European Boating Association, said:

“We are pleased the European Commission has recognised that recreational boat users need clearer guidance. 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 European Boating Industry, said:

“We welcome the publication of this guidance, which addresses several long-standing questions for recreational boating. Clearer interpretation of customs and VAT rules is essential for boat owners, businesses and authorities alike. EBI has worked closely with the EU Commission to highlight the practical challenges faced across Europe, and this guidance is a positive result of that engagement. 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”

“The second-hand market is an important part of the sector, and this will support on many practical concerns to improve the operational environment. In return, improving the framework for the second-hand market is also a long-term asset for the new boat market”

At the same time, the guidance is not legally binding and practical implementation may still vary between Member States. EBI and EBA therefore call on national customs and tax authorities to apply the guidance consistently and proportionately, and to work with the sector to ensure that recreational boaters and businesses can comply with the rules in practice.

EBI and EBA will continue engaging with the EU Commission, national authorities and industry partners to support harmonised implementation and to address remaining practical questions for the sector.

The guidance can be found on the website of the EU Commission.