VAT/Tax on Imported Boats

Greg2

Greg2

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Anyone know what the situation is regarding tax (VAT?) if you import a used boat from the USA?

The current exchange rate means that you can get some serious boats for your money and it has got me to thinking... /forums/images/graemlins/tongue.gif
 
You pay the VAT on the invoice price paid, I think you could also pay it on the shipping cost but I am not sure on that one.

Be cautious however, as it isn't always the bargain you may think.

Don't forget that on a new boat exported, you could be exempt for the local tax - so buying a brand new one might be cheaper than one a year or 2 old....

Also you MUST buy one that is already CE approved (very unlikely) or get it CE approved when it gets here (expensive) or you can't sell it and possibly couldn't get insured on it.

Be cautious.

Also, it might be worth getting a quote from the US dealer, then just take it to the UK distributor, slap it on his desk and ask how close he can get - you may find with some evidence of what you can get elsewhere the kind of deal you get offered here is much better!

Also look at Canada - their boats are even cheaper I think....
 
Was talking about this other day to broker friend of mine as I found a fairline 43 aft cabin in the states at right money,he used to import motorhomes from the states.

We discussed the import issue, firstly theres the vat to be paid on the purchase price, then the import duty, as the boat will more than likely come into liverpool, there the duty wil be sorted out accordingly to a market value.
 
Thanks. The boats are Grand Banks so not sure what the impications for CE marking are as they are supplied here as well.
 
So you pay tax twice? If I read what you are saying cirrectly VAT is 17.5% of the price paid but Import Duty is based on it's value here? Do you know what rate Import Duty is?
 
Yes, as it's part of the UK build process.

Also anything he imports from the States COULD be CE marked, as obviously the builder does it for the UK/European market, but it costs money, so they don't do it on the domestic kit.

Also of course all the systems will be 110V not 240V so that's something else to consider.
 
I think we know whats coming next - - - so if you import it back its CE certified

good question /forums/images/graemlins/wink.gif
 
Import duty on motor boats is 1.7%. You pay VAT and import duty on the amount you paid for the vessel (when I importe a boat in 03, I supplied HMRC with a copy of the invoice and VAT/Duty was paid on the amount I purchased the boat for).

VAT is NOT paid on the import Duty. Effectively you pay 19.2% on the invoice price of the boat. The shipping is subject to VAT only, at 17.5%. Usually the shipping agent will handle the VAT and issue a receipt (yes, they do exist!!!!!) - you pay the shipping agent rather than HMRC. I used Peters & May and they were very efficient.

When I purchased my ChrisCraft, I paid $12,500 for the boat, and $12,500 to the US broker for his services and supply of goods in the US. The boat was originally for sale for $29,000 - I have no idea how the money was distributed in the states, but I was very pleased to get such a discount, though I thought the brokers fees were a bit steep. He was very good however...
 
Duty is taken on the landed value of the Boat this includes Inland U S Haulage Sea Freight Insurance and after this is added the duty if any is taken and the duty is then added to the costs and Vat is then taken
Also the Boat could be impounded if the C E Mark is not avaialable although this is rare the Boat would be allowed to leave the Port but a time limit may be imposed
chers Yall
 
i brought a boat in the back end of last year and got it ce marked over here there was no problem bringing it through customs but to get a bss certificate you have to have proof of ce mark if you buy in the states i would look to purchasing near a shipping port to reduce your transport costs

ash
 
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