VAT

[corba]

We are in the process of privately purchasing a Cobra 750 1985. The owner is not sure if they have a VAT receipt. We have read that boats built from 1985 onwards require a Vat receipt. This is to prove that VAT has been paid if customs board your boat. Does anyone know if this is correct and if there is a way of finding out if VAT has been paid if the current owner cannot find the receipt?

 

[Malish]

Welcome to the forum,
There's plenty of topics on this subject already available on this site - do a search and you'll find all the info you need and more besides. You will also find a lot of info on the RYA site if you are a member

 

[Paul_H]

Have a look at following on the HM Revenue and Customs Web site.

vat documents

If the link doesnt work just do a search for yacht vat on their home page at http://www.hmrc.gov.uk/

Upshot is if its after Jan 1 '85 then a receipt/invoice showing Vat is needed. If its pre that date then proof it was in EU on 31 Dec 92 is needed. HM R&C wont help you other than send a pamphlet that tells you no more than the above.

 

[bobgosling]

I have looked into this a lot because my boat does not have a VAT receipt either. Here's what I have found :

VAT was introduced in 1976 so boats built prior to this won't have a VAT receipt.

UK customs are not usually interested in the VAT status of a boat unless you have imported it from outside the EU.

A Bill Of Sale between two private UK citizens is considered enough proof for UK customs that there is no VAT to pay.

UK customs used to provide a VAT Paid certificate but the section that did this has closed down.

If you have documentation proving that a boat was in UK waters on 31st Dec 1990 ( boatyard bill / marina bill / etc ) then your vessel is "considered VAT exempt".

French customs have a reputation for being fussy about VAT status but there is little proof of this other than anecdotes so if you don't inted to go cross-channel there is little to worry about. You do need SSR , VHF cert and Insurance Policy though.

The RYA recently did some work to find out whether there is any need for a VAT Status Document but I haven't heard what became of this report.

Allegedly, some people have "forged" VAT certificates because there is no way for foreign customs to authenticate the document.

In any case proof of payment is not the same as proof of exemption because VAT could have been reclaimed if the vessel was exported outside the EU at some point in its life.

Hope this helps !

 

[RupertW]

Great reply - but one small thing, I don't think there's any requirement to have an SSR unless you're going abroad.

 

[Sailfree]

Having seen a few people marched off their boat and given a lift in their car (free!!) to the nearest cash point I would add to your comments that French Customs require the originals or otherwise impose an on the spot fine.

I have not yet been stopped in 8 years of sailing to France but accept that I will at some time.

I personally don't see why the French Cutoms are so concerned about the VAT and Document status of visiting UK boats when UK Customs are happy but it does happen. I believe their main focus is firstly on Channel Island boats. I can understand why people generate replica Bill of Sales/Invoices with untracable companies to indicate VAT paid. It is now a lot easier on computers to do this than using John Bull printing sets and I am not sure you can carbon date the paper of the Invoice to differentiate between 1986 & 2006!!

 

[bendyone]

I had a simular problem with our Hunter 26, in the end Select Yatchs were able to send me a copy of the orignal invoice and a leter stating that VAT had been paid. ( it cost me £35 for the copy!)

 

[bobgosling]

[ QUOTE ]
Great reply - but one small thing, I don't think there's any requirement to have an SSR unless you're going abroad.

[/ QUOTE ]

French customs = France = abroad = SSR required ?

 

[bobgoode]

Thought VAT came in 1973, not '6?????

 

[totopalm]

Certain vessel that were in useas private pleasure craft prior
to 1st Jan 1985 and were in the EU on 31st December 1992,
may be deemed VAT paid under the single market transitional
arrangements.
Bill of sale is not proof that VAT has been paid
Beware of spurious advice.
Get Notice 8 from customs, it is quite concise.
If the seller cannot show proof of VAT paid be very
careful, especially if taking the boat abroard example
the French can impound your boat.

 

[gtmoore]

Notice 8 does say that a Bill of Sale between two private individuals in the UK indicates that the tax status is the responsibilty of UK Customs.