Ouch that hurt - how to pay VAT on your imported into the EU boat

superheat6k

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So lots of places tell you when you have to pay VAT, and the dire warnings of what happens if you don't.

So what I asked and have now found out, was: How do you actually pay the VAT that is due ?

This is the procedure ...

1 Contact HMRC Pleasure craft unit for advice - 0300 051 6922.

Inform them of your intended purchase / import. They are very helpful, and being open with them from the outset I think makes the whole process much smoother.

2 Read Customs Notice 8, but this does have some key omissions.

3 As per Customs Notice 8 ...

Fly Q from the 12 mile limit and until given permission to take it down.
Upon arrival contact the Yacht Line (number in CN8) to report your arrival reporting any thing required as stipulated in CN 8. They will grant permission to take down Q.
Fill in form C1331 Pt 2 arrivals and send this to the Dover yacht unit of HM Borders Agency. Keep a copy or scan to send to the Pleasure craft unit.

4 Then as omitted from CN8 obtain from HMRC website form C384 - this is where you declare the vessel and its value.

5 Submit this with proof of purchase / value of the vessel and send to the Pleasurecraft unit. They were happy for me to send scans of these documents. Make sure you include the HIN or equivalent identifying mark.

6 They may choose to visit you, but this was simply a formality in my case.

7 They will assess you for Vat @ 20% (current VAT rate) of the Invoice / proof of value documentation provided plus Duty (if applicable- Channel Islands is 0% for duty), and will then send you a demand / Invoice.

8 Pay this as instructed and inform them you have paid the funds (this is the painful part just done in my case).

9 They will send you a receipt that is laminated and duly stamped as VAT paid. Treasure this document with your purchase invoice and Bill of Sale as it means your VAT status is then bulletproof anywhere in the EU.

I also asked that they mention both the former and new name on the document and they were happy to do this. Having both names mentioned I felt makes it simpler to show the document applies to the vessel once in my ownership without having to show some foreign official the HIN to prove VAT paid status, and will be equally useful at time I come to sell it.
 
Congratulations on having completed all the formalities. Must be a nice feeling to know everything is now sorted.

As it happens, I'm moored opposite a corvette 32 just now. She is a very nice looking little ship indeed!
 
9 They will send you a receipt that is laminated and duly stamped as VAT paid. Treasure this document with your purchase invoice and Bill of Sale as it means your VAT status is then bulletproof anywhere in the EU.

I also asked that they mention both the former and new name on the document and they were happy to do this. Having both names mentioned I felt makes it simpler to show the document applies to the vessel once in my ownership without having to show some foreign official the HIN to prove VAT paid status, and will be equally useful at time I come to sell it.

I completed something similar although the boat came on the back of a lorry, perhaps because of this the receipt wasn't laminated although it did come by 'signed for' post.
 
Nice post Trevor. Now we are looking forward to the upgrade thread :D
Indeed I need to get it started. Perhaps some winter reading. I have managed to get to grips with photo bucket, so now just need to learn the bit about how to post into a thread.

Here goes ...



Ok so now I can do that, no excuse now !
 
Very informative thread, thanks.
What evidence did you have to produce to prove the boat's value for calculation of the tax, and did you get the impression they were checking the information in any way?
I simply provided the Broker's Invoice. They did visit but this was quite informal, and they seemed happy with the details I had provided, and raised no further questions. I did take trouble to discuss with them the precise procedure prior to the purchase being completed, and found them very helpful, and I think this helps smooth the way later as they can see you are being up front from the outset.

If you PM me I will provide the contact details of the chap I dealt with.
 
So lots of places tell you when you have to pay VAT, and the dire warnings of what happens if you don't.

So what I asked and have now found out, was: How do you actually pay the VAT that is due ?

This is the procedure ...

1 Contact HMRC Pleasure craft unit for advice - 0300 051 6922.

Inform them of your intended purchase / import. They are very helpful, and being open with them from the outset I think makes the whole process much smoother.

2 Read Customs Notice 8, but this does have some key omissions.

3 As per Customs Notice 8 ...

Fly Q from the 12 mile limit and until given permission to take it down.
Upon arrival contact the Yacht Line (number in CN8) to report your arrival reporting any thing required as stipulated in CN 8. They will grant permission to take down Q.
Fill in form C1331 Pt 2 arrivals and send this to the Dover yacht unit of HM Borders Agency. Keep a copy or scan to send to the Pleasure craft unit.

4 Then as omitted from CN8 obtain from HMRC website form C384 - this is where you declare the vessel and its value.

5 Submit this with proof of purchase / value of the vessel and send to the Pleasurecraft unit. They were happy for me to send scans of these documents. Make sure you include the HIN or equivalent identifying mark.

6 They may choose to visit you, but this was simply a formality in my case.

7 They will assess you for Vat @ 20% (current VAT rate) of the Invoice / proof of value documentation provided plus Duty (if applicable- Channel Islands is 0% for duty), and will then send you a demand / Invoice.

8 Pay this as instructed and inform them you have paid the funds (this is the painful part just done in my case).

9 They will send you a receipt that is laminated and duly stamped as VAT paid. Treasure this document with your purchase invoice and Bill of Sale as it means your VAT status is then bulletproof anywhere in the EU.

I also asked that they mention both the former and new name on the document and they were happy to do this. Having both names mentioned I felt makes it simpler to show the document applies to the vessel once in my ownership without having to show some foreign official the HIN to prove VAT paid status, and will be equally useful at time I come to sell it.

Ahh but the laminated doc is worthless now we're not part of the EU, I'd ask for your money back Trevor .
 
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