buying a boat and tax

[outdoorhanz]

hello,

I am planning on buying my first sailing boat, when looking at boat listing I have come across ads which say "tax paid" and wondering what this means.

I am based in the uk in northern ireland do you have to paid tax of some kind on boats?

Also do you need to regiter with any goverment body?

I was sort of under the persumsion that you could just go a buy a smal yacht and start sailling?

Would be helpful if you guys and gals to fill me in on any legal requirement in getting your first boat as I have not been able to find the information.

thanks peter

 

[KellysEye]

Like most other things boats are subject to VAT on the sale price. If a boat is imported and has not had VAT paid in the country of manufacture then UK VAT is due on importation. I don't know if this has changed but the other rule was that if the VAT in the country of origin was less than UK VAT then the balance between the two had to be paid.

 

[maby]

Almost all of us have to pay VAT on our boats - worse luck. Some commercial users - such as sailing schools and yacht charter companies may be able to reclaim the tax, so when they subsequently sell the boat second-hand at a later date, it may come onto the market tax unpaid. You and I will almost always have to pay the tax.

I did hear a suggestion a while ago that if you were buying the boat as your only home, you may be able to reclaim the tax - but I cannot verify this!

 

[Tranona]

I don't know if this has changed but the other rule was that if the VAT in the country of origin was less than UK VAT then the balance between the two had to be paid.

Thats a new one! Does that mean that the UK government must pay me the difference between the VAT i paid in Greece at 19% when it was 17.5% here?

Seriously, what you say is nonsense. VAT is paid in the state where the transaction takes place, and then it is free to move around the EU with no further VAT. The only possible exception is the New means of Transport where if you buy a boat in say the UK for delivery in Spain you pay VAT in Spain, not UK.

 

[Tranona]

hello,

I am planning on buying my first sailing boat, when looking at boat listing I have come across ads which say "tax paid" and wondering what this means.

I am based in the uk in northern ireland do you have to paid tax of some kind on boats?

Also do you need to regiter with any goverment body?

I was sort of under the persumsion that you could just go a buy a smal yacht and start sailling?

Would be helpful if you guys and gals to fill me in on any legal requirement in getting your first boat as I have not been able to find the information.

thanks peter

Before you get confused with in all sorts of misinformation suggest you buy the litttle book from the RYA on buying boats. You will also find a detailed explanation of VAT in relation to boats on their website.

The reference to "tax paid" on adverts is because a boat used privately is subject to VAT (or may be exempt). In most cases VAT is paid when the boat is bought new and if it then changes hands privately no further VAT is due. If a boat is owned as a business asset the VAT is reclaimed. When it is sold the seller charges VAT on the sales price. So a boat advertised as NOT tax paid will be advertised at the price without VAT.

Most of this is irrelevant to the typical private buyer of a used boat as virtually all used boats are "VAT paid" However it is important to have evidence with the boat's papers because there are potential problems without. You can read more in the RYA publications. BTW this all applies equally if you buy in Eire (or any other EU state).

There are no other regulations or formalities to consider before you start sailing. Usual to have insurance and many people undertake some form of training - usually though the RYA scheme which has theory and practical courses at progressively higher levels. If you plan to sail the boat outside the UK it will also need to be registered, but it is not necessary inside the UK.

There is masses of information available on the subject, including books, magazines, websites - and as suggested the RYA is a good starting point for information.

 

[outdoorhanz]

Thank you

that clears it up nicely and gives me some more resources to check.