Evadne
Well-Known Member
/forums/images/graemlins/smile.gif Thanks for that, I suppose it's one of those irrational fears of officialdom, exacerbated by the fact that some of today's "old" boats hadn't been built when I bought Evadne in 1985....
Why so many problems regarding VAT invoices?
- Thread starter JamesS
- Start date
Marsupial
Well-Known Member
Well heres' another one for you to add to the "we didnt know that at the time" pile of "stuff", but please dont shoot the messager 
If you HAVE paid VAT and you HAVE got the paperwork and you HAVE taken the vessel out the EU you COULD be liable to pay the VAT again when/if you return . . . it sucks! and worse there are many interpretations of this "ruling" but none that mean you dont pay anything to anyone, more often you could find your paying lots to many.
Iam in the process of trying to get my boat out of the EU but I dont want to incurr more VAT on returning - if I need to - when I know the exact answer I will publish - but at the moment the age of boat isnt an issue on this scenario. Any age qualifies for this contribution!
where's that jolly roger?
If you HAVE paid VAT and you HAVE got the paperwork and you HAVE taken the vessel out the EU you COULD be liable to pay the VAT again when/if you return . . . it sucks! and worse there are many interpretations of this "ruling" but none that mean you dont pay anything to anyone, more often you could find your paying lots to many.
Iam in the process of trying to get my boat out of the EU but I dont want to incurr more VAT on returning - if I need to - when I know the exact answer I will publish - but at the moment the age of boat isnt an issue on this scenario. Any age qualifies for this contribution!
where's that jolly roger?
bbg
Well-Known Member
As I understand it there will be no VAT to pay on re-entry to the EU if the boat has not changed hands. That is, take it out and in as often as you like, provided you don't sell it.
If you sell it whilst out of the EU, the new owner will be liable for VAT upon bringing it back in (assuming new owner is EU resident).
If you sell it whilst out of the EU, the new owner will be liable for VAT upon bringing it back in (assuming new owner is EU resident).
LadyJessie
Well-Known Member
[ QUOTE ]
If you HAVE paid VAT and you HAVE got the paperwork and you HAVE taken the vessel out the EU you COULD be liable to pay the VAT again when/if you return
[/ QUOTE ]This is a rumour that has circulated for some time, I have especially found it amongst liveaboards in the Caribbean. It is totally false. As mentioned above, it is only if the boat changes owners while it is outside of the EU that VAT will be payable on re-entry by the new owner. You can safely move your yacht in and out of the EU as much as you like, provided you have the paperwork you mention.
If you HAVE paid VAT and you HAVE got the paperwork and you HAVE taken the vessel out the EU you COULD be liable to pay the VAT again when/if you return
[/ QUOTE ]This is a rumour that has circulated for some time, I have especially found it amongst liveaboards in the Caribbean. It is totally false. As mentioned above, it is only if the boat changes owners while it is outside of the EU that VAT will be payable on re-entry by the new owner. You can safely move your yacht in and out of the EU as much as you like, provided you have the paperwork you mention.
AndrewB
Well-Known Member
[ QUOTE ]
This is a rumour that has circulated for some time, I have especially found it amongst liveaboards in the Caribbean. It is totally false.
[/ QUOTE ]It can be true in some cases ... take a look at this UK Customs advice, section 6.4.
It applies to pre-1985 yachts, or any others, that are 'deemed VAT paid', rather than having an actual VAT receipt. These will become liable for VAT again if sold outside the EU and subsequently reimported. Mine falls into this category, and I have a letter from Dover Customs which says just that.
This is a rumour that has circulated for some time, I have especially found it amongst liveaboards in the Caribbean. It is totally false.
[/ QUOTE ]It can be true in some cases ... take a look at this UK Customs advice, section 6.4.
It applies to pre-1985 yachts, or any others, that are 'deemed VAT paid', rather than having an actual VAT receipt. These will become liable for VAT again if sold outside the EU and subsequently reimported. Mine falls into this category, and I have a letter from Dover Customs which says just that.
LadyJessie
Well-Known Member
This is correct, but the original comment related to 'owner return' - not a sale. If a yacht changes owners outside of the EU, it will be treated as any other goods being imported and VAT (and sometimes customs duty) is due. The 'deemed VAT paid rule' does not apply to goods bought outside of the EU.
Regardless of the original VAT paid/deemed status of a yacht; the new owner has to pay VAT/duty on the value of the yacht (and any other goods bought outside EU) when it re-enters the EU. Old VAT invoices will not help the new owner in that case. Old invoices are only important WITHIN the EU, or if you yourself upon re-entry to the EU need to document that VAT has been paid/is 'deemed' to be paid and that you have not bought the boat outside the EU.
In summary: you will never pay VAT twice on your own goods bought within the EU. However, you and anybody else always have to pay VAT on goods bought outside the EU regardless of its sales tax/VAT/whatever tax status.
Regardless of the original VAT paid/deemed status of a yacht; the new owner has to pay VAT/duty on the value of the yacht (and any other goods bought outside EU) when it re-enters the EU. Old VAT invoices will not help the new owner in that case. Old invoices are only important WITHIN the EU, or if you yourself upon re-entry to the EU need to document that VAT has been paid/is 'deemed' to be paid and that you have not bought the boat outside the EU.
In summary: you will never pay VAT twice on your own goods bought within the EU. However, you and anybody else always have to pay VAT on goods bought outside the EU regardless of its sales tax/VAT/whatever tax status.
Stork_III
Well-Known Member
Extract from HMRC Noitice 8 re importation of previously VAT paid vessel.
6.4 Can a vessel lose its VAT paid status?
VAT is due on the importation of any vessel from outside the EU. However, there are provisions for this VAT to be relieved when an EU VAT paid vessel returns to the EU. This provision is only appropriate if the person who exported the vessel undertakes the importation. If an EU VAT paid vessel leaves the EU, and whilst outside the EU is sold, the new owner will, unless eligible for one of the reliefs described in this Notice, be liable to pay VAT if the vessel is brought back into the EU.
Agree with what you say.
6.4 Can a vessel lose its VAT paid status?
VAT is due on the importation of any vessel from outside the EU. However, there are provisions for this VAT to be relieved when an EU VAT paid vessel returns to the EU. This provision is only appropriate if the person who exported the vessel undertakes the importation. If an EU VAT paid vessel leaves the EU, and whilst outside the EU is sold, the new owner will, unless eligible for one of the reliefs described in this Notice, be liable to pay VAT if the vessel is brought back into the EU.
Agree with what you say.
David_Jersey
Well-Known Member
Sounds like a good opportunity to make some easy money here.......
a) either sell Insurance Policies that will cover any VAT that falls due - plenty of folk seem 100% comfortable that VAT will never be a problem so surely would be happy to underwrite the polices for a nominal fee.
or
b) Export some boats VAT Free, and then re-import on the quiet - plenty of folk seem 100% comfortable with no evidence of VAT having been paid before buying.
Now, where is me BenJenBav Brochure? /forums/images/graemlins/ooo.gif
a) either sell Insurance Policies that will cover any VAT that falls due - plenty of folk seem 100% comfortable that VAT will never be a problem so surely would be happy to underwrite the polices for a nominal fee.
or
b) Export some boats VAT Free, and then re-import on the quiet - plenty of folk seem 100% comfortable with no evidence of VAT having been paid before buying.
Now, where is me BenJenBav Brochure? /forums/images/graemlins/ooo.gif
ditchcrawler
Well-Known Member
I have a 1984 Part 1 Registered boat & do not have the original VAT documents.I do have an original letter from the makers saying that from their records VAT was charged on the original invoice & I also have an original confirmation from a marina that the boat was in the UK on 31 Dec 1992.When I spoke to the RYA they said that a Bill of Sale between two private parties in the UK shows that the VAT is a matter for HMRC.
There is a response to an enquiry on pg 22 of April's PBO which covers the matters.
I have never been stopped in many visits to France,Belgium & Holland & there must be 1000s of people in the same boat(forgive the pun).
There is a response to an enquiry on pg 22 of April's PBO which covers the matters.
I have never been stopped in many visits to France,Belgium & Holland & there must be 1000s of people in the same boat(forgive the pun).