Buying a 30yr old boat, VAT paid or not?

[Phildorset]

Hello all, I am trying to buy a 30yr old Beneteau, not a super expensive purchase, but I have just found out that the current owner (2nd owner of the boat) hasn't got any proof of VAT paid & doesn't actually know for certain that it was paid... does anyone know where we stand on this and is it possible for us to find out if it has been paid? whilst it seems obvious to me that it is the sellers duty to do this, but we rather want this particular model and there aren't many on the market it seems.

Failing that - if anyone happens to have a nice example of a First285 swing keel (and with VAT status then we'll be happy to hear.

thanks for any help.

 

[Aardee]

Hello all, I am trying to buy a 30yr old Beneteau, not a super expensive purchase, but I have just found out that the current owner (2nd owner of the boat) hasn't got any proof of VAT paid & doesn't actually know for certain that it was paid... does anyone know where we stand on this and is it possible for us to find out if it has been paid? whilst it seems obvious to me that it is the sellers duty to do this, but we rather want this particular model and there aren't many on the market it seems.

Failing that - if anyone happens to have a nice example of a First285 swing keel (and with VAT status then we'll be happy to hear.

thanks for any help.

When I sold Aardee (similar size and, I guess, value), the broker was able to get a letter from HMRC effectively stating that while there was no proof of VAT, they were comfortable VAT was paid on her.

 

[Phildorset]

That's a useful steer, thank you.

Before posting the above I had tried to search the topic via the above right search box... Having since tried again via Google I can see how well this has been covered previously! Ooops.

 

[peteK]

I cant see them chasing you for the vat on a 30 year old boat and you being the third owner,As far as I am aware no one has been on these forums saying that hmrc is hounding them to pay the vat on a boat they have just bought.

 

[lw395]

I cant see them chasing you for the vat on a 30 year old boat and you being the third owner,As far as I am aware no one has been on these forums saying that hmrc is hounding them to pay the vat on a boat they have just bought.

The questions tend to get asked when you sail from Jersey to France or similar.
Or when you try to sell the boat to the next nervous newcomer...

 

[superheat6k]

You can't simply pay VAT unless a chargeable event has occurred. However, it is not unreasoinable to assume the VAT has been paid. Even if you had the original Invoice there is no way for you to know a subsequent owner hasn't registered the boat to his business and re-claimed the VAT.

If the boat is UK registered then any future VAT issue would be a matter for UK HMRC and not the French authorities.

The worse case is that at some point you might have to pay VAT at 20% of what you paid for it, but this is somewhat unlikely. So If you want the boat and the seller hasn't got a queue of would be buyers behind you, then simply explain the concern and adjust the price you wish to offer accordingly. Perhaps not 20%, but 10 - 15% off is perhaps not to unreasonable.

Bear in mind when you come ot sell it a fussy buyer may raise the same concern.

 

[[163233]]

If you don't have the bills of sale, then how do you know they own it at all?

 

[Phildorset]

If you don't have the bills of sale, then how do you know they own it at all?

he has a bill of sale from his purchase, but that's not the same as proof of vat paid on orig boat purchase.

 

[Graham376]

he has a bill of sale from his purchase, but that's not the same as proof of vat paid on orig boat purchase.

If the seller understands the problem, ask him to obtain a T2L before sale. Whilst it's not proof that VAT has been paid, it says the boat is in free circulation.

 

[lw395]

If the seller understands the problem, ask him to obtain a T2L before sale. Whilst it's not proof that VAT has been paid, it says the boat is in free circulation.

Yes.

 

[[163233]]

he has a bill of sale from his purchase, but that's not the same as proof of vat paid on orig boat purchase.

If you have a full set then it shows who should have paid the VAT.
If you've bought it in the UK that will always be someone else.

I've never been asked for my T2L, although it might be handy as part of the proof that I don't need to import it into the EU again next year.

 

[Graham376]

I've never been asked for my T2L, although it might be handy as part of the proof that I don't need to import it into the EU again next year.

Don't count on that. The T2L is being used (wrongly) by Portugal and Croatia to satisfy themselves that VAT is not due. Its proper use is to show goods being free to move within EU but, will most likely be invalid for its proper purpose after exit day when the goods arrive in EU as UK goods won't then be free to move. EU have already stated that boats not there will lose their current status. It can be a handy document to have in a boat's paperwork trail as it indicates to a purchaser that UK VAT man is satisfied VAT isn't due.