VAT

[lezgar]

Today I have received Aqua magazine and in the "boat buying basics" say about VAT status that if the boat was in EU on 31 December 1992 it's deemed VAT paid, otherwise a VAT invoice to the boat's first private individual owner is necessary.

Have somebody more information about this?

 

[gtmoore]

I believe it has to be built before 1985 and you have to have proof that the vessel was in the EU on 31st Dec 92 (such as a mooring or yard receipt). It is then regarded as Age related VAT exemption or something similar.

There's details on the RYA web site under legal (which is down at the moment or I could give you the link) and I saw it once on www.hmce.gov.uk but not easy to find there.

I'm having a problem with this at the moment so it's a subject close to my heart!

 

[AndrewB]

That\'s correct ...

For a yacht owned by a EC resident, where VAT was not originally paid, the basic rule is that they are deemed to be tax-paid if it was first used before 1st January 1985 AND if it was inside the EU on 31st December 1992 (including temporary importation arrangements).

In such cases owners on 1st January 1993 were expected to apply to their national Customs agency for a “single administrative document” which is regarded as proof of tax-paid status throughout the EC. This scheme has now finished and new enquiries should be made to the UK Customs & Excise National Advice Service on 0845 010 9000.

Exemption has been granted in other cases, for low value yachts (under £4,000) and also where proof of VAT status is not available but Customs are satisfied the yacht conformed to the EC VAT regulations at the time it was first used.

My experience elsewhere in Europe is that no problems will arise with an EC registered yacht without a VAT receipt provided there is proof that the yacht was built before 1st January 1985.

 

[neale]

RYA website address re VAT query:

http://www.rya.org.uk/faqs.asp?faqCategory=1020415

Neale