Vat on boat - has it been paid? Proof?

[rogerthebodger]

I thought everybody knew that there is no legal requirement in the UK to retain proof of VAT on the purchase of a new boat for private use.

That still does not stop the authorities asking for proof hence the confusion.

Can you point the UK boat owners where this is stated by the authorities.

I have this sort of thing all the time and I would ask for where in the legislation the clain was stated

 

[Tranona]

That still does not stop the authorities asking for proof hence the confusion.

Can you point the UK boat owners where this is stated by the authorities.

I have this sort of thing all the time and I would ask for where in the legislation the clain was stated

No they don't. There is no evidence in the UK of any random inspections of private craft for evidence of VAT payment. Customs will ask questions if there is the possibility of there being a chargeable event involving the boat. The most common situation is when a boat enters a customs area from outside. So if you sail into the UK from anywhere outside you are required to report to customs.
www.gov.uk/government/collections/custom-rules-for-sailing-your-pleasure-craft-to-from-and-within-uk-waters

You will see that you are required to be able to show that you are claiming Returned Goods Relief as importing a boat is a potentially chargeable event. RGR only requires that you show you are the owner of the boat both when you sailed out of the UK and when you returned. This is sufficient proof that the boat has UK VAT paid status, which for most UK boats was acquired by virtue of being in the UK on 31/12/2020.

You (and others) should recognise that VAT rules related to private pleasure craft are very complex, but the complexity is not relevant to maybe 99.9% of boats. Historically the biggest issues were freedom of circulation in the EU for which evidence of VAT status was required. See post#4 above for a brief explanation. Now we are no longer in the EU freedom of circulation is no longer an issue for boats with UK VAT status, although there is a legacy of boats that actually potentially have both EU and UK VAT status. However the number involved is small and will gradually disappear as boats change ownership and mostly will become one or the other.

 

[Chris_Robb]

Technically that’s not stupid it’s their job. Perhaps you’ve misunderstood the law regarding old boats and believe they are exempt from VAT?

It's not just old boats, which incidently if sold overseas and return to the EU Wwill loose their exemption as they will if they stay more than 3 years away. They can claim special circumstances to come back later, but there are mo records of the law ever being used in Europe.

Stupid, and untrained they are in some Ports.... the AADE HAS NEVER GIVEN ANY GUIDANCE ON THEIR JOB. So one customs will give the right answer and another will give you a huge fine.... them then try to get it paid by cash... this is nothing short of fraud. I know because I get involved in every problem with the Greek custom with CA members.

We hope that the EU is going to rule very shortly. Hopefully supporting our position.
...

 

[lustyd]

particularly the pre 1985 exemption

By exemption you meant deemed vat paid. Different thing. There was never an actual exemption that’s why it’s so complex.

 

[Tranona]

By exemption you meant deemed vat paid. Different thing. There was never an actual exemption that’s why it’s so complex.

I know that exemption strictly speaking is different - and there are boats that are exempt, for example because of disability adaptations, but yes I did mean "deemed VAT paid".

However that is not where the complexity arises. This thread is a good example
forums.ybw.com/threads/another-vat-question.601797/
As Chris says, the important issue with this boat/owner is the amount of time the boat has been out of the EU and the evidence to support it. If it is greater than 3 years its VAT paid status, however acquired and therefore freedom of circulation is potentially lost. The use of the word "exemption would be correct in this case, because on re-entry to the EU within 3 years it will be exempt from a new VAT charge because it would qualify for RGR.

For us in the UK the "deemed VAT paid" really has no relevance as the Withdrawal agreement created a new status of UK VAT paid by virtue of being in the UK on 31/12/2020. AFAIK the UK has not retained the exemption for pre 1985 boats that are imported from the EU since that date, nor the exemption from the RCD for boats that were in the EU or built in the EU/EEA prior to 1997. On the other hand the RGR limit of normally 3 years has been changed to no time limit.

Incidentally the pre 1985 rule only applied to the original single market states so those that joined later such as Poland and Croatia have different dates based on 8 years prior to accession.