Proof of vat paid

[Amgine]

I'll be very interested in hearing more about this case, as it specifically exemplifies the justification of the VAT. By turning all that steel plate (and everything else) into a boat, Kenpatt will be dramatically increasing the gross value. It's that increase in value which is supposed to be taxed by the VAT.

So, tell us how it works out!

[DeepFrz]

Jack on M/V Whoosh has written on this subject here. He has provided a very valuable resource for the cruiser visiting the EU, not only in this article but in other areas as well.

Vat and Your Boat

[David_Old_Jersey]

Originally Posted by DeepFrz

Jack on M/V Whoosh has written on this subject here. He has provided a very valuable resource for the cruiser visiting the EU, not only in this article but in other areas as well.

Vat and Your Boat

A good article. Bookmarked!

[Nodge]

I have a similar question but with a twist.

I have bought a UK registered 1988 boat that was laid up in a marina incurring costs for some time before I bought her. I got the boat for £1 but had to settle the incurred costs. I also have a brokers invoice showing i only paid £1.

I now intend to take the vessel to France (I'm currently in the UK and previous owner was UK resident) so in the absence of any documentation showing the vessels VAT status, would i be right in assuming that the the sale between UK citizens settles the VAT issue or am I liable to VAT on £1 or is there something else i might get hung up on?

Cheers

[Rapanui]

If you are an EU resident, you have no right for temporary import free of VAT for 18 months. Instead you have to pay VAT.
For home built boats you have to provide sufficient evidence of VAT paid on the materials. For most countries in EU the start date for VAT eligibility was 1987 so your boat is just inside the requirement for paying VAT.
What you need is an EU document T2L proving the boat is entitled to free circulation in EU stamped by your customs authority.
Is there ambiguity available of when the boat was completed? 1987 would be a lot easier. I think that date was set as 7 years before EU sIngle market started.
If you are UK, RYA can provide lots of help an guidance. My feeling is, based on just getting a T2L for our boat, is that UK HMRC are very helpful. If you have any evidence that the boat existed in 1987 I would send that and my guess is you would get a T2L issued.

[valhalla360]

A question I didn't see answered:

Where is home? Huge difference if the boat is coming from the USA vs the UK. Sales tax paid in the USA makes no difference and if you are a UK resident, there is no temporary import option.

Nodge: Best to check with the authorities (maybe anonymously). This smacks of the idea of putting a fake value on a boat/car so when you register it, you get a lower tax bill and if they catch you most authorities aren't happy about it. Now if you buy a $50k boat and put down $30k on the bill of sale, good chance you get away with it as they really don't know what the value is but $1 and it's pretty obvious there is more to the story. My guess is they will assume that the yard bills were actually part of the sales price since it was a requirement of the deal that you pay the yard bills before you could take full possession of the boat. Worst case they could assign a value of there choosing and let you either pay or provide proof to the contrary.

[valhalla360]

Another thing: I saw this a few years back but never got any confirmation if it was real.

There was a cruiser who went to pay the VAT (on of the med countries but I can't remember which) and while he paid the full %, they assessed the value at 1/10th of the purchase price. Per the EU rules, they had to charge the full percentage but no one is checking the assessed value. The claim was this brought the VAT down to a reasonable level where people buying used boats would voluntarily pay it rather than skirt the rules. Example: If I buy a $100k boat, to save $20k, I would be very tempted to try and find away around paying but for $2k and I can just whip out an official VAT paid document, I would be probably jump on it.

I can't find the source now.

Anyone hear of this? Any truth to it?

[Rapanui]

I would suggest not answering Valhalla's post as it is in nobodys interest to shine a light in that dark corner

[django37]

And if you have paid your VAT on your boat and go sailing round the World and come back to the EU after more than 3 years, you have to pay VAT again! Unless you can proove you have been visiting some French Islands, that are still in the EU. If you have to pay, do it in a EU-contry where the VAT% is low,and where the value can be negociated ...

[jckb]

Originally Posted by django37

And if you have paid your VAT on your boat and go sailing round the World and come back to the EU after more than 3 years, you have to pay VAT again! Unless you can proove you have been visiting some French Islands, that are still in the EU. If you have to pay, do it in a EU-contry where the VAT% is low,and where the value can be negociated ...

Not necessarily. If you've been resident outside the EU for 12 months, and intend to be resident within an EU country for more than 12 months there are exceptions to this rule. HMRC notice 8, para 3.15 gives the detail. Or read the relevant page of my website - google "jimb VAT"