emily15559
New member
In the past, new sail-away or completed Dutch Barges, used for residential purposes were zero-rated for VAT. This was removed by VAT a couple of years ago. Apparently this was the wrong thing to do! A case was brought against the VAT by Colin Stone challenging the new interpretation of the law.
Colin won! The outcome indicates that if over a certain size and intended as a residential vessel and is in at least a sail-away condition then it should be zero-rated.
It raises the question if boaters have unfairly paid VAT in the past for a residential Dutch Barge and are they entitled to a refund?
We supply steel barge kits to many builders (www.dutch-barges.net )
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When the VAT decided to interpret the law differently and stop zero rating, builders had many cancellations. Further, VAT approached the builders for back tax. This even though up to two years ago VATs advice to builders was to zero rate!
Nick Branson
(Branson Boat Design Ltd)
Colin won! The outcome indicates that if over a certain size and intended as a residential vessel and is in at least a sail-away condition then it should be zero-rated.
It raises the question if boaters have unfairly paid VAT in the past for a residential Dutch Barge and are they entitled to a refund?
We supply steel barge kits to many builders (www.dutch-barges.net )
When the VAT decided to interpret the law differently and stop zero rating, builders had many cancellations. Further, VAT approached the builders for back tax. This even though up to two years ago VATs advice to builders was to zero rate!
Nick Branson
(Branson Boat Design Ltd)