VAT proof

[Gelmaster]

Hi, I was wondering if anyone can give me an answer!
I have heard that if you take your boat abroad, a document of proof that the vat on your boat has been paid upon purchase is necessary, or else the foreign authorities involved can claim the appropriate amount off you.
Is this correct information?
If so, what if i bought a Hurley 24 for say "£6000" and all i received with it was a regular receipt (no vat proof from new due to its age), and decided to take it abroad?

 

[Niall1975]

Not sure about anywhere else but when we checked in in Greece we were asked for the VAT reciept and registration (Original). Also in Greece were were asked for our ICC's as well.

 

[Deleted member 36384]

First of all if you wish to research this then search for VAT using the search facility. There are many, many, many posts on this subject. Secondly if you go to the RYA web site you can read informed opinion on VAT that the RYA has put together for the sailing / boating community.

Get in your boat and go off to wherever and do not worry about VAT. There is no mechanism for the buyer to be liable for VAT. The VAT is entirely the responsibility of the seller on the sales transaction if the boat is sold from new, or a business who claimed VAT back on the sales transaction and subsequently sells the boat on.

The buyer has no VAT liability at all. If the VAT bill was not paid and Customs and Excise found out, they would seek the money from the seller, not the buyer. One does not hear about boats being asked for proof of VAT regularly, but it has happened. Consider the situation like flying: occasionally planes fall out the sky but it is a very, very rare occurrence.

Go foreign in confidence!

 

[Gelmaster]

Not sure about anywhere else but when we checked in in Greece we were asked for the VAT reciept and registration (Original). Also in Greece were were asked for our ICC's as well.

What are "ICC"'s ?
so basically, there is truth to this matter ?!!!

 

[Icarus39]

Doc attached

Hi,

If the boat is pre 1985 (was in use as a pleasure craft on 1st Jan 1985, it is deemed VAT paid. I had Dutch customs board me on my last boat (1981). They asked for VAT proof and I showed them the SSR certificate stating 1981 and that is was deemed paid. They accepted this no problem.
Post 1985 you will need either an original VAT invoice for the boat or if self build you will need all the VAT receipts for the boat. Hull, deck, mast, engine, insturments, et et. I got checked with my new boat - launched 2009 and they accepted all the receipts in the folder - they are very comprehensive down to teak, fittings, etc.
I have a RYA document which explains all the legalities - too big to upload. If you PM me with your email address I can send to you

 

[Niall1975]

International certificate of competancy. Got by either applying with an existing RYA course cert ie day skipper or by going out with an RYA instructor and him signing off you know what your doing. We were only asked for this when we checked in at Zea in Pireaus, not in any of the islands we stopped at on the way.

 

[jonic]

Pre 1985 and proof of being in the EU on 31st Dec 1992 will deem the vessel VAT paid.

If not you need an original VAT invoice or satisfactory evidence of VAT paid when travelling abroad.

Some territories enforce this more than others. It is now much more common to be asked for VAT evidence as current law requires a vessel to be VAT paid in order to move freely within the EU.

Ports where you may have come from outside the EU are more likely to be interested as then a chargeable event can can have occurred and VAT can be claimed i.e. the boat is being imported from outside the EU.

A bill of sale between two private individuals in the UK helps as this then suggests that any VAT issues are the responsibility of HMRC. This is not guaranteed to be accepted everywhere.

Unless a customs official really thinks you are importing the boat or have set up a scheme to avoid VAT they are unlikely to pursue a claim for VAT, but there have been incidences of fines or boats being made to leave for not having acceptable VAT documentation.

Unfortunately you will not get a clear answer as each territory seems to change their criteria. Even HMRC will point this out and in the absence of an original VAT invoice suggest you ring the authority concerned. Totally impractical if going on a long cruise.

Customs notice 8 explains in detail. (Google search).

It is rare but does happen.

Here's an extract from the RYA:


VAT
PRE 1985 BOATS
UK & EU ACCESSION COUNTRIES:
DEEMED PAID STATUS
www.rya.org.uk
Updated: 17 January 2007

Current law demands that EU residents should only use a boat
within the EU if it is VAT paid or ‘deemed’ paid. Customs state that
documentary evidence in support of the boat’s VAT status should be
carried with you at all times.

VAT PAID STATUS:
Documentary evidence in support of the VAT status might include:
• an original/copy invoice or receipt;
• evidence that VAT was paid at importation; and/or
• invoices for materials used in the construction of a ‘home
build’ boat.

The rules state that original documentation must be carried onboard
at all times, however, this creates practical problems; paper and
water do not make for a great combination, especially over a long
period of time. We suggest possible solutions would be to have
certified copies taken and have them laminated. Keep these on
your boat at all times, keeping the originals safely at home,
enabling you to produce the originals when and if required. You
may still find officials asking for original documentation and we are
currently discussing this specific issue with government officials to
find a practical solution.

 

[Tranona]

Hi, I was wondering if anyone can give me an answer!
I have heard that if you take your boat abroad, a document of proof that the vat on your boat has been paid upon purchase is necessary, or else the foreign authorities involved can claim the appropriate amount off you.
Is this correct information?
If so, what if i bought a Hurley 24 for say "£6000" and all i received with it was a regular receipt (no vat proof from new due to its age), and decided to take it abroad?

In practice as others say there is nothing to worry about. Foreign authorities are not in the least bit interested in little old boats and they have no juridsticion over you if the boat was bought in the UK. They are only interested in the big boys and in situations where they believe VAT has not been paid. For example a large motor yacht with a non EU flag arrives in Spain from Gibraltar. They can expect a good going over as this is the sort of situation where the owner would benefit from not paying VAT. There are, in fact a number of ways in which VAT can be avoided but in general they are not suitable for small boats. And old boats do not often get involved in VAT transaction.

BTW if you are thinking of taking your boat abroad the RYA will provide all the information you need.

 

[Gelmaster]

Thank you all for the very detailed info and for taking the time to put my mind at rest.
I don't think i will be splashing out on a post 1985 vessel to start off with,therefore if i did venture abroad, i certainly won't worry about a vat document.

This is a great site! Cheers!

 

[bluedragon]

BTW if your boat is pre-1973 (as my last one was) it could not have been VAT paid as VAT didn't exist in the UK then! That should confuse them