VAT on s/h boat (circa 1973)

[WayneS]

Just put a call into HMCE to try to sort out the VAT status on my boat.

I bought the boat privately from a UK citizen in 2001, who bought it from a Danish Citisen (In Denmark) in 2001. History prior to this is unknown but I know that the boat was manufactured in Denmark in 1973.

Can anyboday advise me on what I need to do/get to satisfy any officials that want to check out my VAT paperwork.

Thanks in advance.

Wayne

 

[byron]

There was no VAT on boats in 1973 so if you can prove to HMC&E the boat's age then theyshould issue you a certificate. In fact at one stage there was a unit set up at Dover by HMC&E specifically dealing with such matters.

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[AndrewB]

It was most unwise to buy a yacht without having some definite proof of its VAT status, unless of course allowance for this was made in the price.

If the yacht is worth more than £4,000, you now have to PROVE that (i) the yacht was built in the EC prior to 1st January 1985, and (ii) it was in an EC country on 31st December 1992. Otherwise you are now liable for VAT. (EC countries include all present members for this purpose).

True, if the boat looks her age you can potter around the UK coast without much problem, but if you go abroad and customs either here or there checks you out, it might mean on-the-spot payment.

The place to call for advice is HM Customs & Excise National Advice Service on 0845 010 9000, between 8 am and 8 pm, Monday to Friday. Dover Customs Yacht Office which once handled this has long since closed down. The RYA also offer advice and assistance to members on VAT liability.

I had a similar problem some years ago but found Customs reasonably flexible in the type of proof they would accept. They issued me with a formal letter saying my yacht was "regarded as VAT exempt", which subsequently satisfied French and Portuguese customs.