Vat Payable

purplerobbie

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Is VAT Payable on a boat bought in gibraltar?
The previous owner was british the broker is in england and the boat was built in england?
Rob
 

tcm

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Not as you describe it. Are you looking at a boat advertised "plus vat" perhaps? In that case vat not payable if bought in gibraltar where there is no vat, innit. But vat *might* be payable in other areas.
 

purplerobbie

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Not sure?
I asked the broker was it vat payable and he said no.
He said thats why he runs his brokerage from england it saves all the vat problems.
Nothing else he said was true but i'm hoping this is
Rob
 

MapisM

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[ QUOTE ]
He said thats why he runs his brokerage from england it saves all the vat problems.

[/ QUOTE ]
What the brokerage place has to see with the boat, I can't understand.

[ QUOTE ]
Nothing else he said was true but i'm hoping this is

[/ QUOTE ]
Good luck! I guess you need some...
 

Grehan

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VAT . . . .

The question is, has VAT been paid on the boat, along the line?
For example, by the first or subsequent owners. If not, then Gib is outside the VAT area and VAT would not have been levied when you bought the boat in Gib.
Therefore, when you bring the boat permanently into a VAT area, VAT will have to be paid, on the current value of the boat.

This is my ignoramus point of view . . . but is it correct?
 

nickf

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Re: VAT . . . .

Boats pre 1985 are deemed VAT paid (Age exempt) IF they were in the EU on the 31 Dec 1992 - The RYA site is fairly comprehensive on this.
 

macd

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Re: VAT . . . .

What nickf says is true. This is the full gen from customs and excise:
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. As Austria, Finland and Sweden joined the EU later, the relevant dates for vessels in these countries are ‘in use’ before 1 January 1987 and moored in EU on 31 December 1994.
The following documents are useful to prove the age and location of the vessel:
For Age
Marine survey
Part 1 Registration
Insurance documents
Builders certificate

For Location:
Receipt for mooring
Receipt for harbour dues
Dry dock records
If you are unable to provide any of the above, whilst cruising within the EU you should carry a Bill of Sale (between two private individuals in the UK). Whilst this is not conclusive proof that VAT has been paid, it does indicate that tax status is the responsibility of UK Customs.

If (me again, not customs) the seller/broker can't provide proof of whereabouts on the relevant date, or other clear evidence that the vessel is legitimately 'deemed VAT paid' I'd treat the deal with considerable caution.
 

purplerobbie

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Re: VAT . . . .

[ QUOTE ]
What is the age of the boat, if it is pre VAT then none can be due.

[/ QUOTE ]
1973
Please say this is before the date...
Rob
 

temptress

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If you buy a boat outside the EU and then bring it back into the EU VAT is payable in the frist country you stop in. This applies even if VAT has already been paid in the EU.

To avoid this the original owner needs to bring the boat into the EU and transact the sale inside the EU. The location of the agent is not relevant - it's the loction of the goods.

I would seek some profesional advice!
 

douglas_family

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It is possible to bring a boat back to the EU on a VAT exempt basis if you meet the requirments outlined in HM Customs and Excise Notice 8B, section 22.

this is likely to be relevent if you buy outside EU live on board for a year or so remaining outside EU before returning.
 

RutlandMike

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Re: VAT . . . .

But surely only if in the EU on the 31 December 1992 - which needs documentary proof. I spent weeks researching the VAT issues surrounding the purchase of my boat from Turkey. Did the deal in Kos (within the EU) and no problems.
 

smee

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Re: VAT . . . .

If it was built pre April 1973 it would be VAT exempt if you can prove build date.

If it after April '73 it would only be deemed VAT paid if in EU on 31st Dec 1992.
 
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