how is vat worked out on a us import?

[cormorant]

I have read all the posts I can on the forum and as I understand it I would not have to get involved with all this RCD business if I imported a boat originally made in the broader EU (EEA) before 1998.
So...boats like Fishers 34 and 37 look quite attractive at US prices. But how would they calculate the VAT payable? Would it be 17.5% of the amount I paid for the boat or 17.5% of its perceived market value in the UK? Would be a huge difference.

 

[harvey]

When I did this a few years ago the nice man in C and E invited me to pay VAT (and duty) on the price I paid, but he then took off all the things that had broken since purchase and would have to be replaced. This included the engine! I have a feeling that he was so surprised to have someone volunteer to declare his boat he was as kind as he could be.
Might be worth discussing this with your local C and E shop.

 

[jwilson]

Normally either on the actual purchase price paid - if a recent purchase, or on a surveyor's or brokers valuation. Remember that not all EEC countries VAT is 17.5% - you can pay anywhere, and there have been cases where Spanish customs have been more flexible on valuation than in France or UK.

 

[mikesyam]

On 2 boats I brought over in the last 2 years they added the shipping cost to the purchase price, then added 1.75% import duty to that total and then 17.5% to the total off all 3! Grr

 

[Otter]

Worth checking that it wasn't bought in the EU first and then sold to the US. If VAT was originally charged, you won't have to pay it again?

 

[jwilson]

Unfortunately if sold whilst outside the EU VAT paid status is lost, and has to be paid again on re-importation to EU.

 

[shamrock]

You are only exempt from RCD if the boat was in service in the EEA before 1998. So something built, exported and first launched outside the EEA is not exempt, but it's sisters launched back home are. It's daft but true.

Regarding VAT, the advice is usually to first import somewhere with the lowest VAT rate (although many are harmonising or even raising further) but there are also stories that some countries are very relaxed about valuations - so a blank bill of sale plus some negotiation at the customs office can result in a VAT paid certificate for a lot less than doing it all in the UK.

 

[cormorant]

So this RCD business could be worse than the VAT, as I understand it there is no way an old perkins engine will pass and so it goes on...thanks for the help guys.
Is there any way round these problems that is legal as far as anyone knows? ie if a company based offshore actually owns the boat for instance? Am I just being hopeful? How on earth can anyone determine that a 1960's Moody Halberdier, for instance ,was not first sailed in UK waters before going over to the USA?

 

[Bejasus]

[ QUOTE ]
So this RCD business could be worse than the VAT, as I understand it there is no way an old perkins engine will pass and so it goes on...thanks for the help guys.
Is there any way round these problems that is legal as far as anyone knows? ie if a company based offshore actually owns the boat for instance? Am I just being hopeful? How on earth can anyone determine that a 1960's Moody Halberdier, for instance ,was not first sailed in UK waters before going over to the USA?

[/ QUOTE ]

Unfortunately, I think you find that the burden of proof is down to you. Old cruising receipts of harbour stays, boatyard bills etc can help.

With regards to your old Perkins, I believe it is going to be very difficult for the emmissions testing to be carried out in situ, due to the wet exhaust. I would speak to CE Proof. The last time I spoke to them it appeared that no-one new how this was going to be enforced on older craft. However they maybe able to update that info.

 

[pandos]

Even if the boat was sold in the EU previously and had vat paid, if it is kept outside the EU for more than 4 years vat becomes due again.