VAT on used vessel bought in EU

[zodiac]

I am considering purchasing a used vessel in an EU member state via a UK broker. The vessel will be transported by road.
I have been advised that VAT has been paid and there will be nothing to pay to HMRC at import.
Has anyone any experience in this matter as I would like reassurance. Thanks.

 

[Nautibusiness]

I am considering purchasing a used vessel in an EU member state via a UK broker. The vessel will be transported by road.
I have been advised that VAT has been paid and there will be nothing to pay to HMRC at import.
Has anyone any experience in this matter as I would like reassurance. Thanks.

Hi Zodiac

Welcome to the forum. You will find that there is a wealth of very good knowledge on here and lots of people will do there best to help.
You will find that there is also a lot of grumpy old bu@@ers who because this question and similar vat related ones comes up with quite a lot of frequency they will either ignore it or make a comment that isn't too helpful (even though they usually are!).

Firstly, carry out a search and you will find a stack of information on the subject.
Secondly, ask your broker to make sure that there is an original vat invoice for the first owner from when they bought the boat new. If the invoice is to a company then it may raise alarm bells that vat could have been claimed back so then ask for the one from them to the next owner checking that a vat element is detailed.

If the boat is of low value it is very unlikely that HMRC will be remotely interested, but there is a perceived risk that they may come knocking. I am a broker and have had incredibly few incidents of genuine vat issues, but the risk, propogated by the likes of forums etc is still perceived to be there. So, if it can't be shown by evidence of a vat invoice that vat has been charged (and assumed not to have been claimed back) then factor that in to your negotiations.
The chances of HMRC asking you to prove it are lottery winning levels and you may just get the boat cheaper to the tune of the vat value.

What is it you are buying and where is she lying?

Good luck
Tom

 

[chris1955]

Hi Zodiac

Nautibusiness is right - ensure that the paperwork is all in order before you part with any money. Providing it is then no problems. you should note that you are not 'importing' the boat, providing it is within the EU when purchased, you are simply moving it between states within the EU. 'Importing' would be from places such as Turkey or North Africa, and that is a whole different bowl of fish!

Providing the boat is already in EU waters and has not been used commercially (charter etc) it's a pretty safe bet that VAT has been paid somewhere in Europe.

Do you really want to bring it back to the UK?? My advice is head south!!

 

[jfm]

Zodiac the only way to answer definitively is for you to give us all the facts ( as distinct from us assuming the missing info)

Country you're buying in and the countries through which the boat will pass en route to uk
Nationality of current owner
Type of use current owner has made of the boat
Is seller the first owner?
In which country did current seller buy the boat?
In which countries has the boat been in the last 4 years
Precisely what documentation are you getting and have you seen it and made delivery of defined/ identified paperwork a completion obligation of the seller?
On exactly what basis is the " vat paid" claim based - I mean get the seller or broker to explain

It's probably fine. But your question asks for verification of that, hence my questions