extravert
New member
Now that I am selling my old boat, I find that the evidence I thought I had that the boat was VAT paid is not worth the paper it is written on. When I bought the boat from a brokers 5 years ago, I was given a signed witnessed letter from him that VAT had been paid. In my ignorance at the time, I thought that a broker would know, and this was good enough. Now I find from HMCE that it means nothing. The broker is now out of business, so I have no comeback.
So I am having to sell my boat as VAT unpaid, and reduce the price by 20% (it is going to Sweden where VAT is 25%). I have tried to pay VAT in this country at our lower rate of 17.5%, but no one at HMCE (including the Personal Transport Unit in Dover) wants to know... 'We only deal with vehicles imported into or out of the EU, not vehicles already here'.
I have tried everything I can. It's now time to cut my losses and take the hit.
This story should be a warning to anyone here considering buying a used boat. I have the official view of HMCE on what constitutes VAT paid evidence in the EU. This information comes from their leaflet 'UK Guides for Yachts'. I'll try and summarise it here...
Registration documents (even part 1) mean nothing.
Letters from brokers and previous owners mean nothing.
For a boat first in use in the EU after 1/1/1985, either one of these 2 documents is required...
- A receipt from EU customs when the boat was imported into the EU of VAT paid
- The original purchase invoice when the boat was bought in the EU showing
VAT paid and the VAT registration number. Copies are not acceptable.
For boats in use in the EU before 1/1/1985, both these documents are required...
- Evidence of the boat age (survey, part 1 registration, insurance certificate,
builder's certificate)
- Evidence that the boat was in the EU on this single date : 31/12/1992 (mooring
receipt, harbour dues, dry dock record).
So for any boat first in the EU after 1/1/1985 where the original documents are lost (like mine), or for an older boat that cannot meet the two requirements, there will be a VAT problem.
I suspect there are many in the same position as I was, blissfully unaware of the serious situation that they are in.
<hr width=100% size=1>Adventures of the VAT unpaid <A target="_blank" HREF=http://www.xrayted.fsnet.co.uk>Teddy Bear Boat</A>
So I am having to sell my boat as VAT unpaid, and reduce the price by 20% (it is going to Sweden where VAT is 25%). I have tried to pay VAT in this country at our lower rate of 17.5%, but no one at HMCE (including the Personal Transport Unit in Dover) wants to know... 'We only deal with vehicles imported into or out of the EU, not vehicles already here'.
I have tried everything I can. It's now time to cut my losses and take the hit.
This story should be a warning to anyone here considering buying a used boat. I have the official view of HMCE on what constitutes VAT paid evidence in the EU. This information comes from their leaflet 'UK Guides for Yachts'. I'll try and summarise it here...
Registration documents (even part 1) mean nothing.
Letters from brokers and previous owners mean nothing.
For a boat first in use in the EU after 1/1/1985, either one of these 2 documents is required...
- A receipt from EU customs when the boat was imported into the EU of VAT paid
- The original purchase invoice when the boat was bought in the EU showing
VAT paid and the VAT registration number. Copies are not acceptable.
For boats in use in the EU before 1/1/1985, both these documents are required...
- Evidence of the boat age (survey, part 1 registration, insurance certificate,
builder's certificate)
- Evidence that the boat was in the EU on this single date : 31/12/1992 (mooring
receipt, harbour dues, dry dock record).
So for any boat first in the EU after 1/1/1985 where the original documents are lost (like mine), or for an older boat that cannot meet the two requirements, there will be a VAT problem.
I suspect there are many in the same position as I was, blissfully unaware of the serious situation that they are in.
<hr width=100% size=1>Adventures of the VAT unpaid <A target="_blank" HREF=http://www.xrayted.fsnet.co.uk>Teddy Bear Boat</A>