VAT

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Mr Cassandra

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Hi could not open jonjo post below .However I have a question to ask regarding Vat.
When I bought my boat in Greece.I had an official form stamped by the Greek gov tax office, stating.[ All Greek taxes paid] I have had these papers inspected by local Greek police and custom officers without any trouble.But would they stand up if I traveled to another country as it does not mention Vat. If I did travel what could be the worst thing that could happen ? If I brought her back to the UK would these papers stating all taxes paid, satisfy the local Vat office?
cheers bobt

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Re: Details

Hi The boat is Jeanneau Sun Magic 44. built in France,First put into service 1988 as a Greek charter boat , from which I able to find out the owners are exemt from vat. this boat has always been in ECI am told by a broker that deals in ex greek charter boats, that piece of paper stating, ALL Greek taxes paid .will satisfy all EC country custom officers.cheers bobt

<hr width=100% size=1>boss1
 
Re: Details

IMHO you are in the clear. All greek taxes are paid, Greece is in the EC, so that's that.

But this does not mean that the customs people cannot stop you, for a good rummage around and a lot of humming and hawing. Indeed, they can do it in the same country, more than once. But the fact is that you have a nice official piece of paper, so all very good.

If cruising thru other countries, you often (eg in france) need originals, not copies.





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Re: Details

I would not be too sure that just because a guy says all taxes are paid, that VAT has in fact been paid.

If the yacht was originally bought for charter purposes, then the price would have been net of VAT. The charter company would have been in the clear, i.e. all taxes due would have "been paid" - those would not however have included VAT. And there's the rub. HMCE or any other EU Customs agency might just take a dim view and say "I want the sums due. Now please. As a yacht in private use, the end-user is liable for the VAT." The job's not complete until the paperwork's done.

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Re: Details

Not sure that you are correct. The original invoice should include VAT (have you a copy of that?) and the original charter purchaser would have claimed the VAT back .. which would'nt affect the VAT paid status of the boat I presume?

<hr width=100% size=1>O wad some Power the giftie gie us
To see oursels as ithers see us!
 
Hmmm...

Strictly speaking, when you bought the boat ex-charter, you should have paid VAT. However, I am sure this was included in the price and, it would appear, you have a piece of paper to prove it.

<hr width=100% size=1>JJ
 
Re: Details

But the company from whom he bought the boat is bound to sell at a price which includes VAT. True, they may have reclaimed the VAT. But they will also have charged (and repaid) vat on resale.




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How is the official form? Is to your name?
The law about VAT says that you have to have a invoice with the name and address of seller and buyer, the VAT number of the seller and in some countries the number for tax purpose of the buyer. The invoice has to be dated, the amount that you have to pay written and has to say if is VAT paid. If the official form has your name and the boat details written and state that you are the owner I think that is Ok, but if the official form has the name of the charter of somebody else company or has no name you will have problems.

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How is the official form? Is to your name?
The law about VAT says that you have to have a invoice with the name and address of seller and buyer, the VAT number of the seller and in some countries the number for tax purpose of the buyer. The invoice has to be dated, the amount that you have to pay written and has to say if is VAT paid. If the official form has your name and the boat details written and state that you are the owner I think that is Ok, but if the official form has the name of the charter of somebody else company or has no name you will have problems.

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was pondering vat the other day. i have a french boat that as far as i know has always been uk registered. should i have something to proove it's vat payed? if so is there somewhere it's possible to get a copy?

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Re: Details

Hi I will try to explain.The Greek Gov allowed private parties vat exemption on sailing boats ,this was said to boost tourism! So the people buying and selling are private indviduals.The papers I have are in three parts ALL with three gov stamps on each ,and all these are over stamped with more official rubber stamps ! Hey come on this is Greece they love stamps and paperwork.The first piece of paper is the deregistation one from the port police, This give the boats name and greek reg number ,weight,length, and tell you that there is no outstanding debt on the boat.
The next is the official bill of sail again with all the reg numbers weight ,length, size of engin ect Also name of seller, price at which sold, and my name, all tripple stamped .The third one is stamped on both sides, on the front it states no taxes owed, Name of boat and all the sizes and weights ect. on the back it states
All greek taxes paid ,again all stamped and signed .all the paper work is in Greek .A friend of mine in in Poros, who is greek custom officer says that there is no problem with the paperwork and not to worry, A well known broker of Greek yachts says that is all I need, and that is how he has been selling greek yachts for years He also acts as an agent for a very large boat building co and charter co and activly sells new and secondhand boats this way . But nowhere does it mention VAT.cheers bobt

<hr width=100% size=1>boss1
 
Re: VAT bad message

> could not open jonjo post below

Nor could I on inspection, not sure what happened.

Anyhow my question relates to a different US --> UK Import scenario. The said yacht for sale in the States was built prior to 1984 by a European manufacturer but presumably exported direct to its first US owner.

So if I as a UK national and resident buy the yacht is the transaction free of VAT due to the 1984 cut off rule?

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Re: VAT bad message

HMCE VAT Notice 8:

6.3...
Certain vessels that were in use as private pleasure craft prior to 1 January 1985 and were in the EU on 31 December 1992, may be deemed VAT paid under the Single Market transitional arrangements. As Austria, Finland and Sweden joined the EU later, the relevant dates for vessels in these countries are ‘in use’ before 1 January 1987 and moored in EU on 31 December 1994.



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Re: VAT Ho hum

So it looks like when this theoretical newly purchased yacht lands on the dockside at Southampton after shipping from the States, C&E will send a VAT demand because it is unlikely that a previous American owner of the yacht just happened to be visiting the EU on 31/12/1992?

Do C&E pursue VAT on old boat transactions with any enthusiasm?

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Re: VAT Ho hum

I'm not really up on Customs practice. I think you will have to declare the importation and pay VAT at the point of entry. Amount due will be based on the purchase price you paid. You may also be liable for duty if the vessel is under 12m length.

There is a National Yachtline - 0845 723 1110 - but I have no idea if you're likely to get anything sensible from it.

You can download VAT notice 8 at <A target="_blank" HREF=http://www.hmce.gov.uk/forms/catalogue/catalogue.htm#700>http://www.hmce.gov.uk/forms/catalogue/catalogue.htm#700</A>


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Re: VAT Ho hum

Thanks for the correction. I agree VAT will be assessed on a valuation. In a straightforward arms length transaction, this will be the purchase price plus incidental expenses (shipping, insurance etc) and UK import duty if applicable.


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Re: VAT Ho hum

As a general rule in France where a declared value constitutes the base for a tax charge the authorities have a preemptive right to purchase the item at that price.

John



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Re: VAT Ho hum

VAT on shipping, struth!

How can they justify adding shipping costs to the vessel valuation when presumably the shipping company add VAT to their fee in the first place?

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