VAT Calculation on Low value US Imported boat

eebygum

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If my wildest dreams come true...... I might be purchasing a late 70's 30' boat for around $2000 in the US and looking to bring it back to the UK (and no it's not a hurricane rightoff !). The only other three examples I can find of this make of boat have been up for sale between $14-$20K

If I have a bill of sale for $2000 will this be what the VAT calculation is based on ?

If the boat is subsequently surveyed and insured for $14-$20K would the VAT man use the higher value (in which case I might as well not insure)

If I state the value as $2000 on the VAT form (that's what I paid after all), then are they going to give me a hard time when the 30' boat comes off the Peters & May boat at Southampton (one option I'm considering)

Thanks in advance for any help.


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Althorne

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I would imagine that you would only be liable to pay the C&E 17.5% VAT on the amount paid. If you have a genuine invoice from a bonifide company who has entered these amounts into their books as a sale for the IRS I can't see how anyone can expect you to pay more. Although the C&E can be a bit above themselves sometimes providing everything you have done is legal and above board theyhave no choice but to accept that it was a £2000 sale. Bargain hunting does not give them freedom to value as they please.

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dk

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UK C&E might well decide you're up to some fiddle and have the boat valued. In which case you will be charged VAT on this new figure at 17.5 per cent. Remember, C&E are a law unto themselves - although you could always appeal to the EU commission I suppose!

I don't want to put a downer on it, but you do realise you will have to have the boat RCD plated before you can keep her in the UK/EU don't you? This can turn out a lot more expensive than the VAT, so beware!

Duncan

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Paragon

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Doesn't the RCD apply to newer boats, as this is a 1970's vintage would it not be exempt?

I'm hoping so as this is an option I'm currently looking into!

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Bilgediver

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Forget the VAT it is the least of your problems unless you have a tame naval architect around.

Read the article in a current Yachting Monthly about a chap who sailed into the RCD nightmare after sailing his boat from Vancouver...

The RCD is applied to second hand imports from outside the EU.

THE RYA have a CD with info but quite expensive.


Regards John

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Gunfleet

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If only. What you'll have to do is pay what they ask and appeal. A chum of mine ended up in some obscure VAT court over the export of a couple of hundred umbrellas to Nepal as tips to Sherpa porters (don't ask). It cost a fortune just. Honestly, could you be bothered?

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Joe_Cole

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Try a search here....
<A target="_blank" HREF=http://www.hmce.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageHome_Main>http://www.hmce.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageHome_Main</A>

It looks as if there are a few files which wil be of interest.

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bluevelvet

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Hi I like your idea but I think you will find that in the end your bargin will not be as you think.Suppose you pay $2000 for boat,shipping will be $10/12k,then you have to get boat RCD approved $?.Incidentials like boat preparations and movements both ends and then the small matter of vat.Next consider what will others think when it comes time to sell unless the boat is a known this side of the pond it will not fetch its market value.I too would have liked to bring a boat back from the other side but in most cases it does not add up.Regards John

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Sybarite

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Don't accept this argument at all. That would be far too easy in the case of complicity between the buyer and seller. Eg part paid by bank transfer and part in cash.

I don't know exactly what the UK authoorities would do but in France they have the pre-emptive right to acquire your boat at the value you declare.

John

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Birdseye

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As I read the article, YM seemed to be talking up a story with the report about the guy having RCD problems. He solved it by having the boat put in (I think) category D which cost him very little.

When did you last hear of someone buying an old second hand boat and asking what the category was? So does it really matter if it is classed as A or Z? We dont have limits on where you can sail a class Z unlike the French.

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bluevelvet

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Hi interesting point about containers and I have heard it mentioned before but if said container has internal width of just under 8FT does he saw the boat in half?Regards John

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rhc21

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Bought a boat from a guy who had bought it in switzerland and imported it to the UK to sell. After we had bought the boat he had to pay VAT to C&E from the import. As far as I am aware it was a figure agreed with the C&E which he disputed and got reduced. He had bought the boat new and had keep it for about a couple of years. My impression was that they decide the market value of the boat and not what was paid. If this is not the case anyone could pay a small amount in a contract and pay extra on the side to save on the VAT.
I'm no expert but would have thought that C&E would have virtually every loop covered!

Richard.

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dk

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Sorry not to have got back earlier. I think it's been said below, but I'm afraid that any boat, of any age imported from outside the EU has to be RCD plated if being kept in the EU permanently and this can cost a lot of dosh. If you have her plated Category D, you will be fine in the UK maybe, but take her to N France and it will give you problems, as they are strict about categories and will start asking why a boat plated for inshore use has just crossed the Channel!

Duncan

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