VAT on used boat in Spain

[JoshD]

Does anybody have any experience of buying an old boat in Spain, ostensibly VAT-paid, without a VAT receipt or similar, intending to reregister?

I am in the process of buying a yacht built in 1973, and which has been in Spanish hands since 1994. There is no VAT receipt, and the date of 1994 is too late to qualify for the HMRC guidance that "Certain vessels that were in use as private pleasure craft prior to 1 January 1985 and were in the EU on 31 December 1992, may be deemed VAT paid under the Single Market transitional arrangements."

However the boat is documented under list 7 under the Spanish Registry, and the broker is adamant that it could only have achieved this status by satisfying the Spanish authorities as to its VAT status; and that within Spain the registration would be evidence of VAT status.

My intention would be to switch to UK flag on purchasing the boat (as I do not live in Spain). Obviously my concerns arise once the boat leaves Spanish waters: how do I demonstrate VAT status if challenged?

Has anyone addressed this problem? For example has HMRC been willing to accept the Spanish Registration Certificate as evidence of VAT status? or have the Spanish authorities been prepared to write a letter certifying the VAT status of such boats?

All advice gratefully received.

Josh

 

[Steve Clayton]

Talk to, and take advice from Marie-Carmen or her daughter:

www.aitamar.com

 

[Tranona]

Nothing to worry about. Nobody is going to query VAT on a boat that age. Registration and VAT are unconnected (in the UK). You just have to show that you legally acquired it (with a Bill of Sale) from a private individual.

As the boat does not come from outside the EU any VAT issues are the responsibility of the state where the transaction took place - in your case Spain so HMRC have no interest. I bought my boat in Greece and registered it on the SSR without any problems - even when it was still in Greece.

Make sure that the Bill of Sale states that the boat is free of any charges - I am sure that the official Spanish document will include this - and that the previous owner removes it from the Spanish register. The broker should know how to do all this.

If you are still unsure and you are a member you can get advice from the RYA.

 

[bbg]

I tend to agree with Tranona. Although I have no special knowledge, I understand VAT to apply to transactions, and if one EU resident is selling a chattel to another EU resident, in the EU, it is not a VATable transaction.
I bought my boat in France and registered in UK - no problem.
The only thing I would suggest is that you take a colour photocopy of the Spanish Registration documents, so you can proved that it did have "List 7" status (and make sure you understand what that is). And ensure that the owner de-registers from the Spanish registry, with proof to you. In my case I had the owner sign a de-registration form then I sent it to the French authorities, and they responded directly to me confirming de-registration. You don't want your boat still on someone's database as Spanish (and in case it is, you want the documentary proof that it was de-registered).

 

[JoshD]

Thanks!

Many thanks for the helpful advice, much appreciated.

Josh.