VAT Status

[realslimshady]

We are trying to sell a boat. A potential buyer has asked us the vat status of said boat. The boat is 50 years old and had who knows how many owners. What is our answer??

 

[Greg2]

VAT was introduced in 1973 so by my reckoning if the boat is fifty years old it is not applicable.

In any case it is no longer the issue that it was inasmuch as people tended to want proof of vat paid for trips to the EU but as we have now left any VAT paid in the U.K. is irrelevant from the EU perspective unless the boat was in the EU on 31st Dec 2020. The chances of HMRC enquiring after the VAT status of a fifty odd year old boat U.K. boat are pretty slim!
.

 

[st599]

In any case it is no longer the issue that it was inasmuch as people tended to want proof of vat paid for trips to the EU but as we have now left any VAT paid in the U.K. is irrelevant from the EU perspective.

Except that importation to the EU will incur VAT on the current value, unless under a Temporary Admission.

 

[Mr Googler]

It’s a fear factor.

I had a sale fall through for this very reason

what documentation history do you have? How many previous bills of sale from private person to private person?

 

[DavidJ]

. What is our answer??

I think Greg’s answer
“VAT was introduced in 1973 so it is not applicable”
is all you need

 

[dunedin]

I think Greg’s answer
“VAT was introduced in 1973 so it is not applicable”
is all you need

But wrong

Google all the other threads about this topic (ie boats built before c.1985) and the relevance of their location circa Dec 1992.

 

[shirazchaz]

It's not, on the face of it very simple. However, there's information here: Notice 8: sailing your pleasure craft to and from the UK

The VAT info is buried well down the page.

At over 50 years old, as long as you've got some paper trail a sale in the UK should be ok. A sale for export will attract VAT in the Country of destination.

 

[realslimshady]

Thanks for all your advice.

 

[Greg2]

Except that importation to the EU will incur VAT on the current value, unless under a Temporary Admission.

Yes, sorry, that’s what I meant i.e. VAT would be payable in the EU if imported there permanently so VAT status here irrelevant in that regard.

There may be something in the location of the vessel in 1992 (or not) but let’s be fair, the chances of it being an issue are virtually none existent, particularly if the age of the vessel is verifiable.
.

 

[superheat6k]

But wrong

Google all the other threads about this topic (ie boats built before c.1985) and the relevance of their location circa Dec 1992.

And does anyone on here know anyone who has been quizzed on the 1992 date in the past 10 or even 15 years. Its a non concern for a 50 year old boat, HMRC will never be interested.