VAT status

[stevd]

Hi Everyone,

I am about to sign a contract to purchase my first boat : eek:

I have asked the broker if there is proof of VAT being paid on the boat, but unfortunately the original boat purchase invoice isnt available.

However they have sent me a document through stating that if a vessel is older that 1985 and it can be proved it was in the EC on 31/12/1992 then it may be deemed VAT paid under age related relief.

It does have a part 1 registration and they do have a bill of sale between two private individuals in the UK.

How accurate is this and what implications are there regarding this. Would I have a problem taking the boat over to Ireland for example?

Many thanks

Steve

 

[wallydoo]

you may wish to read this thread by zambant......
its over 11 pages long

http://www.ybw.com/forums/showthread.php?t=314874&highlight=zambant&page=15

Good luck

 

[Deleted member 36384]

Rya vat faq

http://www.rya.org.uk/newsevents/news/Pages/Newryafaqshelpanswerthosetrickyvatquestions.aspx

 

[jonic]

Hi Everyone,

I am about to sign a contract to purchase my first boat : eek:

I have asked the broker if there is proof of VAT being paid on the boat, but unfortunately the original boat purchase invoice isnt available.

However they have sent me a document through stating that if a vessel is older that 1985 and it can be proved it was in the EC on 31/12/1992 then it may be deemed VAT paid under age related relief.

It does have a part 1 registration and they do have a bill of sale between two private individuals in the UK.

How accurate is this and what implications are there regarding this. Would I have a problem taking the boat over to Ireland for example?

Many thanks

Steve

The exact wording for the age related relief (taken from customs notice 8) is:


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.

After this date there were no further transitional arrangements agreed by the EU Commission for subsequent EU expansions.

The following documents are useful to prove the age and location of the vessel:

For age:

Marine survey
Part 1 Registration
Builders certificate
Insurance documents

For location:

Receipt for mooring
Receipt for harbour dues
Dry dock records

If you are unable to provide any of the above for used vessels kept in the UK you should, whilst cruising within the EU, carry a Bill of Sale (if applicable and between two private individuals in the UK). Whilst this is not conclusive proof that VAT has been paid, it does indicate that the tax status is the responsibility of UK customs authorities. It is also advisable to contact the relevant authorities in the Member State you intend to visit, or their Embassy in the UK, to confirm what documentation will be required in advance of your voyage.

When buying a used pleasure craft from any VAT registered business in the EU, you should ensure that the invoice shows separately any VAT which that business has charged to you on supply of the pleasure craft.
If the invoice does not show VAT separately you may have difficulty in demonstrating that VAT has been paid. If you are buying from a business that does not charge VAT on the transaction or from a private individual in the EU and the seller states that VAT has previously been paid on the vessel, you should obtain evidence from the seller that VAT has previously been accounted for.

 

[Tranona]

jonic gives you the long answer - the short one is buy the boat if everything else is in order and enjoy. You will be in no different position from hundreds, if not thousnads of people who own older boats. Nobody is in the least bit interested in the lack of an invoice.

 

[rivonia]

jonic gives you the long answer - the short one is buy the boat if everything else is in order and enjoy. You will be in no different position from hundreds, if not thousnads of people who own older boats. Nobody is in the least bit interested in the lack of an invoice.

Apart from the FRENCH and the PORTUGESE and now some GREEKS>

Peter

 

[Tranona]

Apart from the FRENCH and the PORTUGESE and now some GREEKS>

Peter

Where is your evidence for this statement?

The boat in question is deemed VAT exempt and the criteria for that are common (except for the qualifying date) throughout the EU as jonic explains - or rather quotes from HMRC. The boat is based in the UK, is being sold/bought in the UK between 2 private individuals. Foreign authorities will have no interest in VAT - solely an issue for HMRC - not that there are any issues.