Proof of VAT

kunyang

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14 Feb 2004
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I am looking at the purchse of a Moody 42 Ketch built in 1980. The only proof of VAT is the invoice of the second owner which just states VAT apid. Is this proof acceptable?
 

Tranona

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Nothing to worry about. The only thing that is important from a VAT point of view is where the boat was in 1992. If it was in the EU or EEA at that time then it is "deemed VAT paid". However as you will never be asked to "prove" it then don't worry. If you want a full explanation and have an hour or so to spare, read the RYA/HMRC FAQ sheet on VAT on the RYA site.
 

Tranona

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And that it hasn't spent a couple of years outside the EU since, surely?

That does not necessarily mean it has lost its status - but guess I assumed the OP was talking about a boat in the UK. He will find some of the intricacies of the subject if he reads the homework I set him - or if he has any sense, just buy the boat.
 

rob2

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The whole VAT thing is a piece of ridiculous legislation - bear in mind that politicians do not have any qualifications or understanding of the world. You could hold all the VAT paperwork and actually own a boat which had been outside the EU and in reality has an unpaid VAT due on it, or your boat may have no papers yet be tax paid. You are not required by law to keep receipts for any other item - and it was already too late for many when the legislation was introduced. This mess is also it's own salvation as the authorities know full well that the paper trail is usually insufficient proof so don't look as routine, only when crime is actually suspected.

Rob.
 

GrahamM376

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I am looking at the purchse of a Moody 42 Ketch built in 1980. The only proof of VAT is the invoice of the second owner which just states VAT apid. Is this proof acceptable?

Most of the original Moody invoices showed stage payments which were inclusive of VAT rather than VAT being shown as separate amount but, if you're worried, just make up your own to show any foreign officials. We've never been asked for proof that VAT paid.
 

Howardnp

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Look at Tranona's first response...basically..Older vessels built before 1985 are deemed VAT paid if they were in the EU on December 31, 1992, providing there’s paperwork to support both dates.
Without more info it's difficult to give definitive answers and it would only likely be an issue if you travel to another EU state.
 

Tranona

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only likely be an issue if you travel to another EU state.

Even then not really an issue if the boat is clearly purchased in the UK with a Bill of Sale as evidence. In fact many UK boats are kept permanently in other EU states without any proof of VAT payment and do not experience any problems.
 
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