Another VAT question

[pretzel_logic]

Hi

A question about VAT on an EU yacht. We are thinking of purchasing our first boat this year (we've had a share before in Greece), and there are several to choose from. One of them is listed as VAT paid and it was in the EU on Brexit day with documentary proof from the boatyard confirming the location of the boat on that date. However there is no original proof of VAT paid at the time of purchase (some 30 years ago) though there doesn't seem to be any argument that VAT wasn't paid at the time, it almost certainly was, it's just that there is no documentary proof of this.

How critical is this? We plan to keep the yacht in the EU (maybe move from one country to another within the EU). We are UK residents and will be registering it on the SSR though from what I understand, that makes little difference. Essentially, is it a problem if the original VAT/sales receipt from the boat builder to the first owner is not available. (I doubt going back through HMRC is likely to be fruitful and the builder is no longer with us).

I'm thinking of EU bureaucracy and future selling. My experience from our share in Greece is that the only thing we've ever been asked for is the Certificate of Registration and v. occasionally the insurance.

 

[Tranona]

You are right, you should not experience any serious issues - I say serious because the combination of British registration and EU VAT paid can be a challenge for some customs officials who tend to conflate registration with VAT status. However your evidence that the boat was in the EU on the qualifying date trumps the lack of original invoice (not unusual on a 30 year old boat!)

 

[pretzel_logic]

Thank you. I think I've got my head around it all now, after a lot of reading.

The yacht in question is UK Registered - Part 1. It's been in its current ownership for over 10 years. Am I to assume that would be because the owner is probably not a UK resident? This is all fairly new to me (first boat purchase) but on reading the MCA rules, as a UK citizen resident in the UK I can apply for Part 3 SSR, which seems a lot cheaper (and a lot easier). Is it something to be suspicious about (outstanding loans) or are there advantages to having Part 1 as opposed to Part 3, that would justify the cost?

 

[Tranona]

Thank you. I think I've got my head around it all now, after a lot of reading.

The yacht in question is UK Registered - Part 1. It's been in its current ownership for over 10 years. Am I to assume that would be because the owner is probably not a UK resident? This is all fairly new to me (first boat purchase) but on reading the MCA rules, as a UK citizen resident in the UK I can apply for Part 3 SSR, which seems a lot cheaper (and a lot easier). Is it something to be suspicious about (outstanding loans) or are there advantages to having Part 1 as opposed to Part 3, that would justify the cost?

Keep it on Part 1 - the extra cost is tiny in the whole scheme of boat owning. Many UK owners/residents use Part 1 often because when the boat was new the security was required for finance. Keeping the title registered will be a benefit when you come to sell as it is a solid record of the provenance of the boat. No downsides.

 

[Sticky Fingers]

Agree, Part 1 is a proper commercial registration scheme, much more rigorous than Pt 3, the cost difference is tiny.