VAT

[leomagill]

I have an old boat with no real paper trail for ownership other than bill of sale from previous owner, it's 1976(ish), how would I stand for proving the vat issue if I took it over the channel, I'm not that brave yet but would like to eventually.

 

[David_Jersey]

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In this case, the VAT must follow the asset, since otherwise VAT paid boats would be liable to VAT again on re-sale.

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VAT is payable again if the boat is sold whilst outside the EU and then reimported to the EU. Ouch /forums/images/graemlins/shocked.gif



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It does seem a bit illogical. The problem is that the original document is lost in the mists of time and only copies are available. Does this mean that I can never sell the boat?

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Yes, of course you can sell it. Just not to me /forums/images/graemlins/grin.gif


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So I have what appears to be the original invoice , made out to a private individual, showing boat price and Vat at 17.5% but the finance company insist on seeing sight of the "original VAT invoice". What on earth do Ido next?.

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I am guessing the Finance company want to make sure that their asset is not worth 17.5% less than claimed. (as well as simply checking for good title).

 

[petie]

Title covered by original Builders Certificate and Certificate of Conformity. Both supplied.

 

[ari]

Peter, it sounds to me like you have everything you require.

Have the finance company told you there is a problem with what you have? /forums/images/graemlins/confused.gif

 

[ari]

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The finance house supplying a marine mortgage will return the original invoice along with other title docs once the vessel has been recorded on The M.C.A. Registry Of Shipping

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No they wont. They hold all original documents. Or at least Lombard and BoS do.

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Depends if they Full Part One register the boat.

If they do then they will record their interest in the registration of the boat and return the documents. That interest stays recorded until they discharge their interest upon the loan being cleared.

If they don't register the boat (usually due to it being a smaller amount) then they will normally hold on to title documents, the theory being that you can't sell the boat without them so they have the security of being paid when the boat is sold in order to retrieve the documents from them.

A point to note is that they have a charge over the boat against the money they lent for it whether it is registered or not. And that debt will follow the boat (ie a new owner will become liable) even if the finance company didn't bother to register the boat.

Oh, and there's no way of checking.

 

[Pete7]

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I believe it's because you can't buy a car in the EU VAT free, you can with boats.

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The NATO Status of Forces Agreement enables service personnel and attached civilians to purchase in Germany tax free goods including cars and boats and import them to the UK TAX and VAT free. You were required to keep the vehicle for 6 months last time I checked and then you could sell it legally. Those who had savings made a killing on larger BMW and Mercs because wifey also qualified so thats two cars a year even just dropping them of with a London dealer. Those who used HP would normally break even and would sell after a couple of years, so free motoring and lots of new cars brought into the UK. I did very nicely thank you.

Pete

 

[stelican]

They dont need to!

 

[petie]

Ari
I have given Finance Company everything they have asked for other than ORIGINAL invoice which is not to be found. VAT people say copy will do but Finance have asked potential buyer to say he will pay vat if he is ever asked to. Of course he will not do that. Today I have asked supplier, to me, to ask agent for certified copy of original invoice which may or may not suffice for finance people. If not, will keep boat. Am told that this particular finance co. is known for its detailed and unnecessary rquirements

 

[David_Jersey]

Why don't YOU guarantee to the Finance House to pay the VAT if ever asked?

 

[petie]

Good thought. May do.

 

[ari]

Peter, it does sound like they're being a bit unreasonable. How old is the boat?

May be worth suggesting to them that since they're being so difficult you'll maybe try one or two others. I'd imagine at the moment they're probably a bit short of business so you might find that the threat of losing you makes them somewhat more helpful.

 

[realslimshady]

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I have an old boat with no real paper trail for ownership other than bill of sale from previous owner, it's 1976(ish), how would I stand for proving the vat issue if I took it over the channel, I'm not that brave yet but would like to eventually.

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exactly the situation i hope to be in soon
can someone answer this?