Proof of VAT needed?

[Norman_E]

I am looking at a yacht for sale privately in the UK. Owner has a bill of sale from last owner, but no VAT invoice. Will I be at risk of having to pay VAT either in UK or in anouther EU country if I sail it round Europe to the Eastern Med? Claimed history is that the boat was sold in the UK VAT paid but has subsequently been to the USA & back.

 

[Talbot]

either proof of VAT or reduce price by the VAT amount!

 

[Phoenix of Hamble]

You MAY get asked for proof of VAT... and you won't have it..... either big price reduction, or walk away.... unless of course its priced already at circa 17.5% below the market price, or you've fallen in love with it.... /forums/images/graemlins/grin.gif

 

[cliff]

Fully agree with Talbot and NAS.
Knock 20% off the price to allow you to pay the vat and have something for your trouble or walk away. REmember you might be in the position in a few years where you are wanting to sell her on an teh next potential buyter says " Wot no proof of vat paid 20% off or goodbye".

Remember to knock 10~15% off the asking price first then another 20% for the VAT.
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“Artificial intelligence is no match for natural stupidity”
Skype id:cliffillupo

 

[Phoenix of Hamble]

Also, technically, if you have receipt for a UK purchase, the VAT status becomes a matter for UK C&E, not a foreign equivalent... so they can only inform UK C&E if checked... not sure what the practical implementation of this is though.....

 

[Toutvabien]

Did anybody ever manage to identify any of the presumably numerous yacht owners who have had to pay VAT on their second hand boats due to not having a VAT certificate, or proof of exemption.

As a previous poster suggets a bill of sale between two UK citizens on a British registered boat presumably ensures that the VAT status a matter for HM C&E. /forums/images/graemlins/confused.gif

 

[Joe_Cole]

How old is the boat? If it's earlier than 1986 (I think) my understanding is that you do not need proof of VAT status.

 

[Phoenix of Hamble]

No, but you need to prove that it was in the UK prior to that date.......perhaps a marina receipt, or a yard bill etc

 

[smileygirl]

there was an article about this in last months RYA magazine. If you can prove the boat was last sold in the UK i.e. with a copy of the contract or receipt etc then its a matter for UK c & e. why not contact the RYA

 

[smileygirl]

me again
found the magazine from the RYA, contact the legal dept on 0845 3450373 or email legal@rya.org.uk.
also if the boat was moored in the EC before 31st December 1992 and you have receipts for mooring , repairs or mooring fees etc that counts too apparently. If in doubt contact where you are thinking of going and check.

 

[Joe_Cole]

[ QUOTE ]
" Wot no proof of vat paid 20% off or goodbye".

Remember to knock 10~15% off the asking price first then another 20% for the VAT.


[/ QUOTE ]

If it's fair price and he wants the boat it seems a pity to lose it because of what the seller may well regard as an unreasonable demand. If he agrees a reduction of 15%, and then pays the VAT, he will still be better off.

Mind you, if he doesn't mind losing it then go for the 35% reduction!

 

[Norman_E]

Thank you all who replied. I think I will be able to negotiate an acceptable price, and may have to pay the VAT at some future time if previous payment cannot be proved or the boat has lost its VAT paid status through export and re-import. I am wondering however if Customs & Excise will go after the seller if I pay the VAT and they suspect that he imported it without declaration

 

[Talbot]

better than being arrested by the french cause you have no proof of VAT payment!

 

[Joe_Cole]

I think that the liability goes with the boat. That way they've got something to impound if necessary!

 

[cliff]

Go for at least 20% off the asking price or walk away - you are leaving yourself open to a lot of potential misery and additional cost otherwise. Remember it is a buyer's market at the moment - there are so many boats on the market these days.
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“Artificial intelligence is no match for natural stupidity”
Skype id:cliffillupo

 

[ShipsWoofy]

I have no proof of VAT.

The only thing I have pre 1992 is the SSR book from the previous owner.

Is there such a thing as a VAT exempt certificate I can get to wave under Froggies nose should he ask. Don't want to start a this is your life, producing photographs of the boat pre 92 and scraps of paper etc.

 

[Phoenix of Hamble]

Fraid not..... Customs did at one point issue certificates subject to adequate proof being presented (which is what I have got), but started refusing to issue them any more a long ago....

 

[cliff]

Could not hurt to talk to your local C&E office - you might be pleasently suprised! Failing that why not start a campaign to get vet certificates issued again. There must be many folk in the same sort of position, either a pre vat oldie or a vatable, vat paid but invoice lost boat.
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“Artificial intelligence is no match for natural stupidity”
Skype id:cliffillupo

 

[ShipsWoofy]

There is a big customs and excise in Liverpool, any idea which department will deal with this kind of thing?

 

[ridgy]

I heard a rumour, perhaps an urban yachting myth, and perhaps on this forum, that some chap was so concerened about whether his boat was VAT paid or not that he actually went to C+E with his chequebook offering to pay the VAT again.

C+E were apparently not interested, either in his money or in giving him any form of paperwork. As for all this having mooring invoices from 1983 or whatever...even if you had one then whose to say it is genuine? And likewise if you don't have one then 10 minutes on Word, and erm, job's a goodun?