VAT again sorry!

RobWales

RobWales

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www.3ksengineering.com
Hi,

I'm interested in purchasing a boat which at present is in Turkey and getting it shipped by road back to the Uk.

The boat was originally bought here in the Uk by its first owner and VAT was said to have been paid on it,however it was then at some time in its life (96 model)shipped to Turkey and then sold to somebody else who then sold it to the chap who is now selling it!

Would I be liable for VAT if I buy it?
And other than trying to trace the original invoice etc would I be able to proove that VAT has been paid before?

Any help welcome.

Thanks
Rob
 
Simply put you are liable for VAT on the new price of the boat.

If it is say 20 years old then a boat that cost 30k then would probably cost 120k new now and say 60k second hand. Needless to say the Vatman will try and secure the highest monetary amount. Get HM Customs to give you a VAT value before you buy.

If not them import it into Luxembourg which has the lowest VAT .

All IMHOOC
 
Grrr, pesky VAT, the last thread left me pulling my few remaining hairs out.

/forums/images/graemlins/frown.gif

The only thing I learned is that it is becoming so complex that you will need a smartly dressed expert, I think we know who wins in that formula.
 
[ QUOTE ]
Simply put you are liable for VAT on the new price of the boat.

If it is say 20 years old then a boat that cost 30k then would probably cost 120k new now and say 60k second hand. Needless to say the Vatman will try and secure the highest monetary amount. Get HM Customs to give you a VAT value before you buy.

If not them import it into Luxembourg which has the lowest VAT .

All IMHOOC

[/ QUOTE ]

So you reckon then that I must pay the VAT if I buy and ship back!
So the fact that VAT has been paid for this boat in the past must mean nothing?

What a messy minefield this is!

Any more ideas chaps?

Thanks
 
pretty sure that you will find that the VAT is based on your purchase price, rather than original price - that was my experience.

You will def have to pay VAT cause transaction was not with the original payer of VAT, and furthermore took place outside of the EU
 
Hmmm. This is messy. It has lost its VAT paid status by virtue of being sold while in Turkey. So not much point trying to trace the original VAT invoice. You will be liable to UK VAT on its value if you import it into the UK. You will not be liable to VAT on its original new price. The shipping/transport firm might deal with all this for you - you probably need them to else it could get held up en route as it will pass thru many EU countries before it arrives in UK.

Now, all that is the basic position. And I assume you are a UK person? If not, it's different. There's lots you can do to reduce the VAT cost, and it depends on how much £ is at stake and how much you care. Frexample you could set up a Jersey company and have that buy the boat. It could import the boat VAT free into UK for 18mths. Each time the 18mth anniversary came around, you could sail the boat to Jersey for a while to restart the clock. But you'd also have to manage the BIK tax on using a company asset, and the whole thing gets a bit more complex. So, it depends on your appetite for all this...
 
[ QUOTE ]
pretty sure that you will find that the VAT is based on your purchase price, rather than original price - that was my experience.

You will def have to pay VAT cause transaction was not with the original payer of VAT, and furthermore took place outside of the EU

[/ QUOTE ]

Even more confused now!

Therefore based upon the above statement unless you are the 2nd owner you also are not dealing with the original payer of VAT and are liable! YES/NO?
PHEW...you search the world using the web for a bargain and hey ho the bloody VATMAN goes and throws a spanner in the works.
 
[ QUOTE ]
Hmmm. This is messy. It has lost its VAT paid status by virtue of being sold while in Turkey. So not much point trying to trace the original VAT invoice. You will be liable to UK VAT on its value if you import it into the UK. You will not be liable to VAT on its original new price. The shipping/transport firm might deal with all this for you - you probably need them to else it could get held up en route as it will pass thru many EU countries before it arrives in UK.

Now, all that is the basic position. And I assume you are a UK person? If not, it's different. There's lots you can do to reduce the VAT cost, and it depends on how much £ is at stake and how much you care. Frexample you could set up a Jersey company and have that buy the boat. It could import the boat VAT free into UK for 18mths. Each time the 18mth anniversary came around, you could sail the boat to Jersey for a while to restart the clock. But you'd also have to manage the BIK tax on using a company asset, and the whole thing gets a bit more complex. So, it depends on your appetite for all this...

[/ QUOTE ]

Thanks,

Just missed this post while I was writing my last reply!

It is not of a level to do what you suggest,but what you have said has made it a lot clearer,guess I keep looking closer to home (Wales).

Thanks all for your help
Rob
 
I posted this link on another Vat thread previously, but it is a good summary of a vessel's status re if you are bringing her back to the UK. The bottom line though is that if she is bought outside of the EU, Vat will be payable again. At least that is how I see it - and other folk on here as well, I think.

Although this link is for sailing a boat to the UK, I cannot see that there is any difference in the rules if you ship a boat to the UK, by road or sea.
Have a look at : http://customs.hmrc.gov.uk/channelsPorta...tyType=document
 
[ QUOTE ]
I posted this link on another Vat thread previously, but it is a good summary of a vessel's status re if you are bringing her back to the UK. The bottom line though is that if she is bought outside of the EU, Vat will be payable again. At least that is how I see it - and other folk on here as well, I think.

Although this link is for sailing a boat to the UK, I cannot see that there is any difference in the rules if you ship a boat to the UK, by road or sea.
Have a look at : http://customs.hmrc.gov.uk/channelsPorta...tyType=document

[/ QUOTE ]

Well there it is in BLACK AND WHITE yep if I decide to proceed then YES I'm going to get stung! BUGGER!

Thanks though,that made interesting reading.
Cheers
Rob
 
[quoteunless you are the 2nd owner you also are not dealing with the original payer of VAT and are liable! YES/NO?
PHEW...you search the world using the web for a bargain and hey ho the bloody VATMAN goes and throws a spanner in the works.

[/ QUOTE ]

even if the previous owner paid the VAT, but the transaction takes place outside the EU, you are still liable for VAT - morally outrageous IMHO
 
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