Proof of VAT needed?

That's not urban myth - that was me. When I came to sell my previous boat I found that the VAT documentation provided by the broker when I bought it was not worth the paper it was written on.

I was selling my boat to Sweden where VAT is higher than here so rather than reduce the selling price for Swedish VAT I tried to pay UK VAT. No-one in HMC&E were interested, even when I turned up at the Liverpool office cheque book in hand.

Eventually I sold it VAT unpaid and the new owner paid VAT to the Swedish government instead.

I find it incredible that even when you are prepared to pay HMC&E thousands of pounds they are still completely unco-operative on this matter.

To the disbelievers like Toutvabien, this is not scaremongering, it is a real problem. Most people either don't realise their situation (like me) or just put it to the back of their minds. The nasty shock comes when they try to sell.
 
When I bought my boat (1987) I had to re-import from south of france. Thus I had to pay VAT. Luckily I kept the receipt!

IMHO C&E who supposedly work for us(!) are being unreasonable in their attitude about providing VAT certificates, and I am very disappointed that RYA do not appear to be doing anything to promote attitude adjustment. /forums/images/graemlins/mad.gif
 
I am aware of the situation when a boat changes hands, and this would be particularly acute I suspect if it also changes nationality of registration.

As a disbeliever however my issue is to try and identify how many British sailors, cruising abroad on a British registered boat, have been asked to pay VAT on a second hand boat by foreign customs/VAT.

Hands up.
 
Hi

I've just bought a yacht where there was no VAT certificate. The previous owner had died and consequently no one in the family could find any proof of VAT being paid. The RYA legal dept gave me a number of the VAT office which looks after this problem and this dept have been very helpful, in fact very helpful. The price I originally offered was reduced by 17.5% and I paid the VAT direct to C & E. The bonus is that I can sleep at night not waiting for a knock on the hull by some foreign type official demanding documents etc. However the VAT office did say to me that if in the future any invoices showing that VAT had been paid for in the past then that VAT can be reclaimed by me by submitting a claim form.

If anyone wants the number of the VAT office then please PM me.

David
 
There's a good reason why you won't get a large showing of hands.

If a UK boat is abroad in the EU and does have a valid registration document, although the foreign customs can ask for proof of VAT status, if they find you lacking the worst they can do is refer the problem to UK C&E. As we can see from extravert's post, C&E here just don't want to get involved.

So I expect the reason why VAT status is not checked much is because...

1) Most people who go abroad will be registered. This is well known, cheap, and easy.

2) If a boat is checked and found to be acceptably registered, the foreign customs quickly lose interest, because even if a VAT transgression is subsequently discovered, there's little they can do about it.
 
[ QUOTE ]
Hi

However the VAT office did say to me that if in the future any invoices showing that VAT had been paid for in the past then that VAT can be reclaimed by me by submitting a claim form.

If anyone wants the number of the VAT office then please PM me.

David

[/ QUOTE ]

So I presume you are busy chasing the builders for a copy of their original sales invoice?
 
All may not be lost. I have contacted the builders, and from the yard number they have told me where the boat was sold originally. The owner is now trying to get a copy of the original VAT invoice. Problem is that after 19 years the sellers may not be able to find the documents.
 
Slight problem with Angus' reply.

The French , in their inimitable way, have decided that it is THEIR Customs & Excise who have the final decision over VAT status for any boat in their waters, regardless of the vessel's nationality. UK C&E know this, it was mentioned in a letter they sent to me when I queried this very point. I totally agree that the RYA should be nipping at C&E's heels over this. It would be simple to issue an Official VAT Exemption Certificate for boats over a certain age or where proof of transfer of ownership between 2 UK citizens can be proven.

Bottom line is - if you were to "create" a VAT receipt ( and laminate it ) how likely are they to check up on it ? Particularly if you had the correct details about the original builders' VAT and Company registration numbers ?
 
I accept that foreign countries may interpret the rules as they see fit, and even interpret the rules differently within different parts of the same country.

I have never had a request for anything in my foreign travels, but from what I have heard, in France, if you are inspected and have a valid registration certificate, customs tend to be happy with that, and then leave you alone.
 
Hi Milltech

Builders no longer working. However, I think I've found 1 company which is still trading which did some of the fitting out. But the work took place over 8 years ago and more than likely they have destroyed their VAT records. Still something might just turn up.

David
 
exactly
does monsoor duane follow up with checks to british dealers to ask for copies or proof of invoices? i think not. a copy of sage or quickbooks and bobs your uncle,
.

stu
 
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