VAT on second hand boats

[NigelCraig]

As I understand it if I sell a privately owned and used boat (i.e. mine) and I am not doing it as a business, VAT is irrelevant. Apart from anything else, the value is reduced (from new) not added. If it was a relatively new boat I would need to prove VAT was originally paid on the purchase as a new item. However, if I buy a (used) boat from a broker which was proved to have the original VAT paid (might be difficult on a boat from mid-70s say) although the broker is doing it as a business, as far as I can see, the only value added is the brokers service, which is a service to the vendor essentially, who pays VAT on the brokerage fee. The buyer should pay nothing. Am I correct?

 

[Tranona]

In a convoluted way you are correct. However you do not by "from" a broker, but through him. You are buying direct from the private owner so it is not a chargeable event, therefore no VAT (unless of course the owner is not in effect private but the boat is a business asset in which case the seller is liable to account for any VAT). If the broker is VAT registered he will charge the seller VAT on his brokerage fee.

On old boats (pre 1986) it is not normally necessary to have any evidence of VAT as they are deemed VAT paid. However there are some exceptions. After that date it is better to see the original VAT receipt, but it is not a legal requirement and many particularly older boats do not have evidence. The newer the boat the more likely (and important) it is to know its history to determine that VAT has been paid.

You can find all the details on VAT and boats on the RYA website or HMRC VAT Notice No8. John Rodriguez (jonic who posts here) also has a useful guide on his website.

 

[jonic]

You can find all the details on VAT and boats on the RYA website or HMRC VAT Notice No8. John Rodriguez (jonic who posts here) also has a useful guide on his website.

Here it is http://www.jryachts.com/vat-and-rcd

 

[NigelCraig]

In a convoluted way you are correct.

I will make this wording available to SWMBO if it makes it slightly less painful to admit, occasionally, I am right!