VaT

[petie]

Since first raising this issue with a view to selling my boat, I have had hours of discussions with many people and organisations and can confirm that HMRC are adamant, verbally and in writing, that the only way to prove that VAT has been paid on a boat is to produce the original invoice. HOWEVER; the following E Mail from RYA may be of interest and assistance. "Policy at HMRC have agreed that either an original or a copy invoice acts as sufficient evidence that the vessel is VAT paid (unless there has been a chargeable event in the intervening period) HMRC are not able to indicate whether a copy invoice would be acceptable to foreign officials although in all likelihood it would as other member states generally accept as evidence of VAT status whatever documentation the flag country has deemed is acceptable. Its a great pity that HMRC could not tell me this and rightly or wrongly, this statement is sufficient for prospective owner and finance company to go ahead with sale. It has taken two months to reach this stage mind you. Many thanks to all those who chipped in with advice. Delighted to respond to PMs if more details needed.

 

[Deleted User YDKXO]

I'm surprised that the finance co would go ahead on this basis because what counts, as far as they are concerned, is not what the RYA or HMRC say but whether the UK Registrar accepts the copy document as valid. The concern of the finance co is to register the mortgage and if the Registrar won't register the boat due to lack of documentation, they can't do that. Is the finance co proposing a different registration eg Guernsey because I know Guernsey has lower standards of documentary proof?

 

[petie]

Understand going for uk part 1 but not for me to argue whether they are right or wrong. Just relieved it is all sorted out.

 

[gjgm]

I still think that HMRC are actually being asked the wrong question. It might be more valid to ask whether they would seek to obtain VAT from a boat where you could only produce a copy, the answer to which is almost certainly, NO.
After all, its the original seller who in the course of his business collected and paid the VAT, as somewhere in some archived accounting, it would show. So, although a copy may not suffice as stand alone proof, it certainly would indicate that it could further be proven.
It would be interesting if RYA could find any instance of HMRC trying to charge VAT on a second hand boat, ever (other than deliberate fraud)

 

[jfm]

Exactly gigm.