Selling boat in Croatia, VAT Status

[Nina Lucia]

Buyer for our Etap 23, that is based in Croatia asking for proof of VAT. She is build 1986 and when we purchased her five years ago, we just received bill of sale... He needs VAT status because because he would like to change the flag from British to Croatian. Any suggestions appreciated, Thanks

 

[RupertW]

Did you buy the boat in Croatia?

 

[Nina Lucia]

No I didn't, she is british SSR vessel

 

[Baggywrinkle]

No I didn't, she is british SSR vessel

When did you take her to Croatia? ... VAT rules are as follows ...

https://www.sea-help.eu/en/croatian-customs-regulations-online/

 

[Nina Lucia]

We went to Croatia 2014...

 

[Baggywrinkle]

We went to Croatia 2014...

So basically when Croatia was already in the EU ... so the boat was moved from the UK to Croatia without leaving the EU? - if there is a possibility it was out of the EU for 3 years it would lose its VAT status anyway.

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. For age this could be a marine survey, Part 1 registration, insurance documents or a builder’s certificate, while receipts for mooring or winter storage would satisfy the location requirement. When buying a second-hand pleasure craft from any VAT-registered business in the EU, the invoice should itemise the VAT charged to you in that transaction (see How to inspect a second-hand boat before buying).

If you are unable to provide the normal documentation as above, for vessels kept in the UK it’s recommended that, while cruising within the EU, you carry a Bill of Sale (if applicable and between two private individuals in the UK). Although this is not conclusive proof VAT has been paid, it indicates that the tax status is the responsibility of UK authorities.

https://uk.boats.com/boat-buyers-guide/vat-boats-guide/

I would try and get a VAT payed statement from the UK authorities rather than Croatia.

Contact the Pleasure Craft Unit of Expertise team as a starter.

pleasurecraft.lcsouth@hmrc.gsi.gov.uk.

You can also contact the team by Telephone: 03000 516 864 or by post at:

HM Revenue and Customs
Pleasure Craft Unit of Expertise
Lynx House
1 Northern Road
Portsmouth
PO6 3XA

 

[RupertW]

No I didn't, she is british SSR vessel

Fair enough but British SSR is nothing to do with it. Ours is British SSR although bought in Croatia, vat paid in Croatia and never been near Britain. The ideal is a chain of bills of sale back to the original VAT.

 

[Nina Lucia]

So basically when Croatia was already in the EU ... so the boat was moved from the UK to Croatia without leaving the EU? - if there is a possibility it was out of the EU for 3 years it would lose its VAT status anyway.



https://uk.boats.com/boat-buyers-guide/vat-boats-guide/

I would try and get a VAT payed statement from the UK authorities rather than Croatia.

Contact the Pleasure Craft Unit of Expertise team as a starter.

pleasurecraft.lcsouth@hmrc.gsi.gov.uk.

You can also contact the team by Telephone: 03000 516 864 or by post at:

HM Revenue and Customs
Pleasure Craft Unit of Expertise
Lynx House
1 Northern Road
Portsmouth
PO6 3XA

Thanks so much, I will try with them, RYA "legal" didn't have any good suggestion except to contact Etap directly- I dont think Etap keeping any details of they vessel from 1986....

 

[jwilson]

I would try and get a VAT payed statement from the UK authorities rather than Croatia.
Contact the Pleasure Craft Unit of Expertise team as a starter.

You may try, but I'd be very VERY surprised indeed if you can get any evidence of VAT status from the HMRC. The built before 1985 "deemed VAT paid status" is a non-starter for a 1986 boat. Try and go back to previous owners and see if they have anything.

Even if HMRC bent backwards to be helpful, all they could trace would probably be a lump sum payment in 1986 from XYZ Ltd - the Etap importer/distributor - that showed all VAT paid each period, this not being not broken down into details of which specific boats it referred to. The only time they'd really have full details if there had been a VAT fraud investigation at the time, and even if that had occurred, would they still have the records 30+ years later.....

Sorry not to be more helpful, just might save a lot of time on hold and being transferred through HMRC VAT departments.