Buying a Boat...from abroad

[pau1gray]

Ok - so we are still looking for our next boat whilst trying to sell ours. Anne asked an interesting question this morning.

In an advert we were looking at a 2001 boat which was e.g. £50000 tax not paid. What tax would have to be paid on this figure. Is it tax on the 'as new price' or on the '2nd hand price' and what rate would it be at (15% or 17.5%)?

Just thought that someone in here might know..

 

[Divemaster1]

Sale price + VAT in country you take her in to...

 

[enterprise]

Sale price plus VAT at 15% (soon to be raised again) plus import duty on the whole cost including shiping.
You need the commodity code from HMRC to know exactly the percentage added for import duty.

 

[Elessar]

Sale price plus VAT at 15% plus import duty.
You need the commodity code from HMRC to know exactly the percentage added for import duty.

Nearly

Import duty (it was 2% when I imported from the states)) on the value then vat on the total (including shipping costs and import duty). Note the order you pay tax on the tax.....
Value is likely to be the sale price unless HMRC decide otherwise. If you have too much of a bargain (or a dodgy receipt) they will raise the value accordingly.

 

[pau1gray]

Sorry I should have mentioned - the boat already appears to be in the UK

 

[enterprise]

I imagine you would need to pay the asking price + 15% Vat, but It's just a guess on my part.

 

[Tranona]

Sorry I should have mentioned - the boat already appears to be in the UK

If you are buying from a trader such as a charter company or a dealer and the boat was originally supplied into the EU then you pay VAT on the Invoice/Bill of Sale price just as you would any other item you purchased.

If you are buying from a private individual who has imported the boat into the EU then it is his responsibility to pay the duty and VAT as well as ensure that it has a CE mark - that is it is in accordance with the RCD. It is a criminal offence for him to sell to you without!

Tread carefully. The RYA has good advice on what is required.