Import from US / VAT

[PeteMcK]

I'm on the point of looking at a boat in Ft Lauderdale. UK built and owned 83, vat paid, UK-Bahamas 86 and never returned, now US registered and owned. My understanding is that boats satisfying both conditions, that they are older than 85, and were EU based at some point before 93, are not due vat on re-import. (But shockingly, all other vat paid re-imports are: double jeopardy or what?)
Also, if it is taxable, I'm fairly sure the vat will be calculated on its UK valuation rather than its purchase price (realistically 2:1).
VAT at current UK valuation knocks the project on the head. It's either 0% tax or, effectively, 35%(!).
HMC&E helpline agree, not totally convincingly, with my reading of the bits and pieces I've found on the net - it's exempt.
Before I book my flight to inspect it - can anyone out there confirm.
(Gone sailing - see you on Tuesday)

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[beneteau_305_553]

I don't know about registration but I would think that there is no problem with VAT providing, when you come to sell it, you can produce some paperwork to prove the original owner did pay VAT .


<hr width=100% size=1>Richard

 

[PeteMcK]

That's what I thought. That would seem entirely logical but the general rule is that if the boat changes hands outside the EU, it's regarded as a tax unpaid import and the VAT is due at the first port of entry to the EU (which, all things being equal might well have meant an Irish rather than a UK port). Before I commit to anything, I'll contact my local C&E and ask them to put the reasoning behind their guidance in writing.

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