Dreaded VAT...

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Guest

Guest
I am in the process of purchasing a yacht from outside the EU, with the intention of returning it to the UK east coast later this year. The boat complies with the requirements of the rcd so I am OK on that score. However I am in the enviable postion of acquiring the vessel at a much discounted rate, so my question is... is vat calculated on the actual price I paid or will C&E calculate the amount of vat owing based on the UK value of the vessel? (The difference between the two could run to several thousand pounds)
 
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Guest

Guest
The theory is that VAT is payable on the current value of the boat. Normally Customs are prepared to take the value as being the price quoted on the Bill of Sale. However, they are entitled, if they think the price is a fudge, to value it themselves or get an independent valuer in at your expense. Buying a boat for a nominal £1 and then giving the vendor free use of your Swiss ski lodge doesn't wash.

Are you sure you are in the clear on the RCD? Does the boat have a CE mark and number? If the boat was built in Europe and exported before the RCD came into force, you will still have to get it inspected and certified even if it is a sister ship to ones which are certified. You may not have to make any alterations, but the cost is still not inconsiderable. Contact the RYA for details (02380 627400)
 
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