Importing from Channel Islands

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MisterBen

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I think that, subject to survey, I am about to buy a boat in the Channel Islands on which no VAT has been paid. I realise that on bringing her home to England I will have to pay VAT, but have heard a rumour that this can be reduced a little by declaring the value of the bare boat alone, ignoring equipment. Is this so? Is it legal? Knowing the comprehensive and sometimes aggressive powers of HMC&E, I am rather wary. Has anyone done this recently? Can the paperwork and payment be completed in advance of arrival at a South Coast harbour? Any advice gratefully received.
 
My understanding is that Vat is due at first port of call. Some countries benefit from not being your home but rake in tax by accepting nice valuations. C&E always have the right to revalue on arrival in the UK if they think l it was undervalued but effectively you have to be "noticed" by them.

Look at previous posts as to the cheapest place to pay VAT.
 
Can C&E re value if the boat has already got a vat clearance from another EU country. ??

After all the vat is payable on import into the EU not the uk, Although this would in this case be the same thing.

Tony.
 
Being a UK VAT registered company, what if I were to buy said boat and then sell it on to you; charging you 17.5% plus say 2.5% for the paperwork. Surely then you could sail happily into your home port with nice clear paperwork in hand? Not to mention, the value of said sale could be debated over a fine Scotch or three.

All very hypotheticable, of course you honour.
 
I did this 3 years ago, with some difficulty. You cannot do a paper transaction before arrival in UK. You have make the boat available for inspection so that they can inspect the boat and put a value on it. I was bringing my boat to the River Orwell but thought that I had to do the VAT bit on first arrival on the south coast. My first problem was finding anyone in customs who knew what the customs procedures were. I was given numerous dead end phone nos and despite lots of phone calls I could not find a customs outfit that would help!! In the end I spoke to customs at Felixstowe and agreed that they would handle the VAT after arrival on the Orwell. In the meantime I had to sail under the yellow flag. I would stress that this was agreed before importing the boat.

The business was handled at Felixstowe by a customs officer who was familiar with small craft. Although he insisted on the right to inspect the boat, in the end he never bothered and simply estimated the value from the details which I had supplied. He had a good idea of what second hand boats were worth, but I challenged his valuation based on outstanding work which was recommended in a recent survey (new engine, stanchion replacement etc) and we eventually reached a reasonable valuation. I understand that if the valuation is problematical they/you can consult a broker or surveyor for more info. We only ever discussed the bare boat - not the contents, which was advantageous to me. The VAT certificate only refers to the boat and from what I could see of the voluminous paperwork involved, they would not want to raise a VAT cert for every piece of equipment on board ! Finally when they presented the bill they wanted cash & it took a few days to arrange for the acceptance of a personal cheque. They would not accept any form of card. Hope this helps.
 
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