Brokerage 'attractive features'

[BlueSkyNick]

Just poking about on various yacht sales websites, came across this one which is described as very highly spec'd, excellent condition, etc. basically the 'mutts nuts' of a boat.

However, the final paragraph is

A further attractive feature is that VAT has to paid on the sale therefore buying the yacht through a company will allow the VAT to be reclaimed.

So the sale price of the boat will have 20% added to it for a private sale.

Erm .... attractive?

Is it me?

 

[Tranona]

It might be attractive to a person who can take advantage of this - although such people are rare.

Not wanting to get into a long VAT argument as it gets folks wound up - but avoiding paying VAT on a boat is usually only possible on a new boat, and then only if you are buying it for a business or taking it out of the EU. So if you are in a position to reclaim VAT (legally) you are somewhat limited in your choice of boats. If, however you are a legitimate business such as a charter operation or Sailing School that is VAT registered then a cheaper used boat that belongs to another VAT business, which it is likely this boat is, has attractions as it is notionally 17% or so cheaper than buying a similar boat from a private person. It might also be of interest to somebody intending to export the boat out of the EU as the VAT may be reclaimable.

Just as an example I bought my boat on a charter management deal and through the management company and VAT was reclaimed. When it came off charter VAT was shown as a separate item on the invoice to me as a private person. However, if I had continued offering it for charter and established a legitimate VAT registered business, I could have reclaimed the VAT - as could any other business that it was sold to.

So - attractive - Yes - but only to a very limited number of potential buyers.

 

[ruaridhmaccallum]

Now, shoot me down in flames here, but is it just possible that the VAT is actually included in the sale price, but the boat is being sold by a VAT registered entity, thus the "attactive feature" is that other VAT registered entities can get it for 20% less, not that everyone else has to pay 20% more?

You know some brokers are just a bit lazy about the way they write things...

 

[laffinskip]

brokerage

Brokers--Lazy?? good grief,heard everything now.

 

[jonic]

Just poking about on various yacht sales websites, came across this one which is described as very highly spec'd, excellent condition, etc. basically the 'mutts nuts' of a boat.

However, the final paragraph is



So the sale price of the boat will have 20% added to it for a private sale.

Erm .... attractive?

Is it me?

Nick why are you "just poking about" do we feel another change coming on

I have disappointed starlight 39 buyers now mine has gone