emily15559
New member
You may be aware that sail-away or completed Dutch Barges to be used for residential purposes for a number of years were zero-rated. This was taken away by VAT a couple of years ago. But apparently this was the wrong thing to do! A case was brought against the VAT by Colin Stone challenging the VATs 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 unknowingly paid VAT in the past for a residential Dutch Barge are they entitled to a refund?
Branson Boats Design supply steel barge kits to many UK builders.( www.dutch-barges.net ) When VAT decided to interpret the law differently and stop zero rating, builders had cancellations. Further, VAT approached the builders for back tax. This even though up to two years ago VATs advice was to zero rate!
As this ruling may save new build Dutch Barge owners and builders many thousands of pounds I thought to raise it on this forum.
Nick Branson
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 unknowingly paid VAT in the past for a residential Dutch Barge are they entitled to a refund?
Branson Boats Design supply steel barge kits to many UK builders.( www.dutch-barges.net ) When VAT decided to interpret the law differently and stop zero rating, builders had cancellations. Further, VAT approached the builders for back tax. This even though up to two years ago VATs advice was to zero rate!
As this ruling may save new build Dutch Barge owners and builders many thousands of pounds I thought to raise it on this forum.
Nick Branson
