We have no proof of VAT, how much will this devalue the boat?

[Tranona]

I am simply saying that in business you are only required to maintain records, including those for vat, for 7 years. The onus would be on HMRC to prove vat hadn't been paid, so for a boat with 7 years + ownership records being in the UK and owned by UK or EU citizens, not sure they could do that to the satisfaction of a Court.

This 7 years bit is, as I say, a red herring. If HMRC think there is a VAT liability then it is because they believe that a transaction has occurred that gave rise to a liability. Age of the boat or time since the transaction is irrelevant.

The 2 most likely scenarios are that a VAT registered vendor failed to account for the VAT, in which case it is the vendor that is responsible, not the buyer. The second is if VAT was not paid in the original purchase, because it was either exported (if bought in the EU) or originates from outside the EU and is being imported. Then the person importing is responsible, but the liability could remain with the boat.

UK/EU ownership in itself is no evidence that there is no VAT liability, although if the original purchase was by a private individual and a trail of private owners probably means the chances of a liability are small to non existent. On the other hand somebody could smuggle a boat in, not pay VAT, sell the boat on years later but there would still be a liability.

There are so many different scenarios that you can't make a generalised statement about liability - it depends entirely on the facts. The examples given are just to illustrate circumstances where the risk is higher.

The major concern for many is not the possibility of a liability, but the EU requirement that evidence of VAT payment is required for free movement around the EU. However, experience has shown that most states do not make a big issue of this and boats move freely without any inspection of evidence, nor action in the absence of evidence.

 

[wipe_out]

Great news!! Received an email yesterday with a copy of the original VAT invoice from 2002.. Hopefully means a much smother sales process..

Thanks for everyone for the input and suggestions..

 

[hullabaloo]

+1

But you could also contact the manufacturer and quote the Hull no or Yard no if you have it. They may be able to supply an official copy, this may not exactly match requirements but is is an extra proof and will be better than nothing if you are still concerned.

I contacted Princess and they were able to supply copies of

The builders certificate
The original Bill of Sale
The original VAT invoice (stamped and signed saying it was a copy)

all in a nice pack. It cost £35

we phone princess today and ask for;
The original Bill of Sale and
The original VAT invoice (stamped and signed saying it was a copy)
barry chapman said, "sorry we cannot supply those due to customer confidentiality laws",
we said we don't need to see anyones name or address we just want to know if the vat was paid, and he went on to say "they would not know if the vat was paid",
(if i do an invoice i know if the vat was paid (he's a knob).
do you know who you dealt with at princess so i can bypass this typical english jobs worth?
ps; i am english.
thanks