VAT advice

[jrudge]

I had a look at this for cars.
To stop abuse cars have to be permanently and substantially adapted. This came in some years ago. Before that people added things like a knob on the steering wheel.

Cars are zero rated. They are not vat exempt. So the invoice shows that vat has been applied - but the rate is zero. As such the item is vat paid.

i can find nothing about private sales of zero rated goods. However ... the reason the law was changed to permanently adapted was that one person bought Several hundred range rovers over a period of years and sold them back to The dealer for a profit. The profit was the VAT. For the same reason They also limited a buyer to one every3 years.

As such - and I will call hmrc who are very helpful - as long as you have an invoice showing the sale as disabled and a zero rate applied the goods are vat paid.

Th is cars. Boats may or may not be the same.

As above don’t by afraid of hmrc. They are really very good and as long as you get through to the right person incredibly knowledgable. .

 

[jlnfrench]

I am looking for a boat circa 40', modern and not too racy

 

[Sticky Fingers]

...

Cars are zero rated. They are not vat exempt. So the invoice shows that vat has been applied - but the rate is zero. As such the item is vat paid.

i can find nothing about private sales of zero rated goods. However ... the reason the law was changed to permanently adapted was that one person bought Several hundred range rovers over a period of years and sold them back to The dealer for a profit. The profit was the VAT. For the same reason They also limited a buyer to one every3 years.

As such - and I will call hmrc who are very helpful - as long as you have an invoice showing the sale as disabled and a zero rate applied the goods are vat paid.
...

"Zero rated", yes of course. Apologies, I used 'exempt' which means something else. As it happens the OP has moved on, but this is interesting.

I've edited my earlier use of 'Exempt' in this thread to clarify that it's zero rated.

 

[Newbroom]

A motorhome adapted for disabled use was VAT exempt for the owner declaring it only. That I know for fact I cannot believe a boat would be any different.As somebody else has said contact your nearest VAT office and ask the question.

 

[Sticky Fingers]

We've established it's "Zero rated" not "Exempt".

 

[hullabaloo]

but it's perfectly feasible, and allowable in EU and UK law.

I have been told that VAT was not paid as the original purchaser was disabled and had the vessel modified thus making it exempt from tax and exempting future owners in perpetuity.

how can; "i have been told" be feasible ?
Feasible would be; "we have a HMRC doc here to prove vat exempt". or a vat in voice saying zero rated.

I wouldn't buy any boat with a "i have been told story",

There is a big difference between vat on new cars, disabled cars and used boats .

 

[Sticky Fingers]

 

[TwoHooter]

When questions like this arise where a lot of money is involved it is worth buying a subscription to the RYA to get access to their legal department. I have used them twice and I think they are very good. I regard our RYA subscription as an additional (and cheap) legal costs insurance. Also the RYA used to have excellent contacts within HMRC's VAT section. Not sure if that's still the case.