Sailfree
Well-Known Member
Lets face it Tax collection in the UK whether VAT or PAYE is an obligation the government puts on businesses.
I suspect that VAT fraud on yachts is so small the IR have bigger fish to fry.
I have the original receipt for my boat that I can show everyone it was VAT paid when the boat was sold to me but as a charter boat the VAT was reclaimed demonstrating the worthlessness of a "VAT receipt" except to satisfy a few!!
One aspect not mentioned is that IIRC all boats sold abroad (even secondhand ) are due to pay VAT on their value on importing into the EU. Which if I understand it correctly a new boat say £200k sold in the EU will have VAT added to the bill. If it is later sailed to the Caribbean an (outside the IIRC 6month period when you can reclaim VAT if permanently exporting a boat) and sold S/H say to a EU citizen for £100k then if it was re-imported back to the EU then VAT will be due on the £100k. Final decision is whether the sale of the secondhand boat was deemed to have taken place in within the EU (with goods in the caribbean!) or outside the EU. I know VAT being possibly levied on a boat twice or more seems unfair but that how it was explained on here.
I suspect the French have concerns with the closer proximity of the tax free channel islands. It must be tempting to buy a boat from a port only 20mls away tax free?
I suspect that VAT fraud on yachts is so small the IR have bigger fish to fry.
I have the original receipt for my boat that I can show everyone it was VAT paid when the boat was sold to me but as a charter boat the VAT was reclaimed demonstrating the worthlessness of a "VAT receipt" except to satisfy a few!!
One aspect not mentioned is that IIRC all boats sold abroad (even secondhand ) are due to pay VAT on their value on importing into the EU. Which if I understand it correctly a new boat say £200k sold in the EU will have VAT added to the bill. If it is later sailed to the Caribbean an (outside the IIRC 6month period when you can reclaim VAT if permanently exporting a boat) and sold S/H say to a EU citizen for £100k then if it was re-imported back to the EU then VAT will be due on the £100k. Final decision is whether the sale of the secondhand boat was deemed to have taken place in within the EU (with goods in the caribbean!) or outside the EU. I know VAT being possibly levied on a boat twice or more seems unfair but that how it was explained on here.
I suspect the French have concerns with the closer proximity of the tax free channel islands. It must be tempting to buy a boat from a port only 20mls away tax free?
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