Proof of VAT paid on a boat purchase

[greggreystones]

Hi
New to boating but have been told that I must get a vat invoice for any purchase of a used boat (or I could be liable)I am looking at a boat in Europe , I have agreed a price and the broker has sent me a statement from the finance company which shows the boat being bought from the finance company at the end of its finance period. The invoice for only 15euros +vat is the final payment before the previous owner owns the boat. The broker has told me that this is proof that Vat has been paid. Has anyone got any experience of this, the finance company is a big reputable company
Thanks

 

[kashurst]

I don't think the UK inland revenue would accept a final invoice of 15euros + vat. but will they ever ask - I very much doubt it. Technically you need to be able to show that VAT was paid on the boat when its was sold to a private individual - some sort of plausible document. Otherwise the local authorities may decide you are liable for VAT at the price you paid for it. There are a few get arounds if the boat was first in private use before 1980 (I think) or is seriously old anyway. Ultimately no one here will tell you to buy a boat without a meaningful VAT receipt. So either walk away or take the view that at some point you may be asked to prove VAT status, in which case you might get a bill. Many years ago I tried asking UK VAT office about a lack of VAT invoice for a boat I owned and they just didnt seem interested. I have been boarded by customs a few times and have never been asked for VAT status, just insurance and ICC. So the risk is yours, knowing what I now know and having owned a few boats with and without VAT proof I take the view that the risk is minimal. However at some point in the future you will want to sell the boat and the next potential buyer may baulk without evidence.

edit - I just read MapisM reply on your other post and I am inclined to agree with him. However VAT on boats in the UK can be a pain in the **se with subsequent buyers.