VAT advice

[Black_Pearl]

Our boat is based in Jersey I believe VAT has never been paid, she was built in 1979.
I'm currently advertising her for sale on ebay.
If she sells to a UK purchaser how would VAT be charged?
Also if I deliver the boat to the UK is there any chance I could get charged VAT as the importer?
Anyone with any first hand experience of this?

Thanks

 

[rotrax]

Our boat is based in Jersey I believe VAT has never been paid, she was built in 1979.
I'm currently advertising her for sale on ebay.
If she sells to a UK purchaser how would VAT be charged?
Also if I deliver the boat to the UK is there any chance I could get charged VAT as the importer?
Anyone with any first hand experience of this?

Thanks

I believe your boat is old enough to be deemed VAT free.

 

[Tranona]

The person who imports it into the EU is responsible for paying VAT. It will most likely be based on the purchase price on the basis that this reflects the market value. Therefore if you sell it to somebody for £10k, they will have to pay £2k (20%) to HMRC for which they will get a receipt. If you import it and then sell it, you will be responsible for the VAT which will be based on a valuation, which in the absence of a recent sale may well be different from what you sell it for. Your selling price will therefore have to recover the tax you have paid.

It is probably better to sell it and let the buyer worry about paying the tax. You will obviously have to set a price that makes it attractive to a UK/EU buyer in comparison with a VAT paid boat in the UK. If similar boats are selling for £10k in the UK then you are unlikely to get more than £8k+ to allow for transport and tax. The potential buyer will obviously work out the cost to him including any additional expenses and tax in making his offer to you.

I assume the boat was built in the UK (or EEA). Otherwise it will need to comply with the RCD irrespective of its age, which may make the boat unattractive to EU buyers.

You can find a full explanation of the VAT issues and import procedure on the RYA site, or in HMRC VAT Notice No8. The RYA will also advise on the RCD situation if you provide details of the boat.

BTW the "deemed VAT exempt" status referred to above only applies to certain boats that were in the EU in 1992 - explained in the references above.

Hope this helps.

Just looked at your ad (should have done that earlier!) and it should be OK on the RCD front, which is a good thing because it would be uneconomic to get it through with the current engine. The asking price looks competitive with others on offer already in the UK/EU, but of course have no idea of how it compares in terms of condition etc.

 

[ostell]

I believe your boat is old enough to be deemed VAT free.

Was that not just for boats already in the UK/EU? Bringing it in from outside will probably still attract VAT, though there may be some reliefs available. Try contacting HMRC.

This section has some what looks like relevant entries. I read it that VAT needs to be paid but some exceptions and reliefs.

 

[Black_Pearl]

Thanks for the useful advice, far clearer plan of what to do (or should I say, what not to!)

 

[jwilson]

Our boat is based in Jersey I believe VAT has never been paid, she was built in 1979.
I'm currently advertising her for sale on ebay.
If she sells to a UK purchaser how would VAT be charged?
Also if I deliver the boat to the UK is there any chance I could get charged VAT as the importer?
Anyone with any first hand experience of this?

Thanks

VAT start date is April 1973, not 1985 - the commonly quoted 1985 relates to a "deemed VAT paid" concession for pre-85 boats that were provably in the EU at the end of 1992.

Bottom line is either bring the boat to the mainland and pay 20% VAT on a surveyors or brokers valuation yourself, then sell with a VAT receipt, or leave the payment to the buyers. The buyer will HAVE to pay based on the actual purchase price, as long as it is sensible, if the Bill of Sale shows a silly low figure HMRC can insist on a valuation.

The boat could of course sell to someone in the CI, in which case paying VAT is pointless.

 

[neale]

Any boat imported into the EU now, regardless of age, will need to have VAT and possibly import duty paid on it. Any EU based purchaser should know this and it is their responsibility to ensure the boat is correctly imported and VAT accounted for when they bring it back.

From your point of view you have nothing special to do. Advertise it as VAT unpaid and let the purchaser take care of the tax if required. I am guessing the boat is around 20% cheaper than a similar boat already in the EU?