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  1. #31
    Join Date
    Feb 2006

    Default Re: Buying a Boat: VAT not paid

    This has become too technical for me too but IF you experts still have time/energy, please advise on the Channel Islands situation, where boats like mine often appear on brokers' lists as "tax unpaid" - presumably VAT not sorted. And should I be upsizing that's where I'd look.

    In your dreams CJ . . .

  2. #32
    Join Date
    Dec 2004

    Default Re: Buying a Boat: VAT not paid

    I am not a VAT expert, cos' we don't need it down here! so treat the following with a degree of caution!!

    Whatever the difference between a boat advertised as VAT free / Tax unpaid (if any), basically you will find that it boils down to if someone in England wants to buy the boat from Jersey then they will need to pay the VAT when it arrives in England. At 17.5% of the market value (usually the amount on the Bill of Sale).

    In many respects this makes life easy. you <u>know</u> the boat has no VAT paid, you <u>know</u> that VAT <u>needs</u> to be paid and then you pay the VAT........and get a nice HM Customs reciept to waive at Johnny Foreigner Customsman (or a subsequent purchaser). IMO, job done. (and IMO you are then in far better position in practice when it comes to proving the VAT Paid position than someone with or without (??!!) a manky old VAT Invoice on a boat that has never left England).

    IMO the more difficult situation is where a Jersey Boat is advertised as "VAT Paid" or "VAT Paid Status", where the vendor (or broker) <u>genuinely</u> thinks the boat will not need VAT paying on it when it goes to England........but is wrong.

    My understanding (from a few years ago - so stand to be corrected) is that if a Boat had VAT paid on it in England, then was sold <u>IN</u> England to someone in Jersey and <u>then </u> the boat moved to Jersey that the VAT paid status <u>is</u> retained on the vessel. (and a few years back you could get a Certificate from the UK VATMAN saying this (which my Father got on his Boat), but that the VATMAN has now stopped doing this).

    However if the boat is subsequently sold entirely <u>within</u> Jersey that the boat will lose it's VAT paid status, without anyone actually getting any money back from the VATMAN! The way around this being to move the vessel to the UK (or I believe France) and then buy / sell the vessel. If I was buying a VAT Paid vessel from Jersey I would do so only on the sale being 100% conditional that it <u>was</u> accepted as such by the UK VATMAN, not just cos' the Broker / Owner <u>thought</u> it was...........even if this involved insisting that the vessel going to England before all the money had changed hands.
    Waiting for Dan to put me out of your misery since 17 Feb (2010 ).

  3. #33
    Join Date
    Aug 2001
    Wherever there are boats

    Default Re: Buying a Boat: VAT not paid

    A few 'simple' observations from someone who has researched a little, JFM knows more than me if he's around;-

    1) VAT/TVA is an EC-wide tax, hence the consistency ( yes, I'm having a laugh!) of treatment across Europe.

    2) I know a few brokers who don't understand 'VAT status' and their lack of understanding is sometimes reflected in their 'VAT not-paid' adverts, having said that they know more than many 'individuals' selling them

    3) The treatment and transactions relating to the sale of boats which are VAT-reclaimed or VAT not -paid dependends upon which boat, where and between whom the transaction takes place ( possibly the most meaningless 3 lines ever written on this forum)

    4) Spain tightened up its VAT/TVA rules ( and started enforcing some they already had) about 2 years ago from memory. ??

    5) I guess if you want to save a few pennies on a £300,00 boat by a bit of falsification on value then you should have bought a £290,000 one ?

    6) I could make a few bob if I did this professionally ..

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