What Is This Mystery Tax?

[Capt.Golightly]

I am currently in the process of buying my first boat and everywhere I look for advice on fixed costs all that is ever mentioned is the R&CT license and insurance but many boat adds I look at also say "tax paid"....is there a river tax like road tax to pay? if not what is this "tax" being referred to?

[Mike Tee]

VAT?

[bottle]

At a guess VAT.

 

Edit: Beaten by one minute.

Edited July 21, 2013 by bottle

[Paul C]

I don't recognise it from your description, can you link to an advert which says this?

[Capt.Golightly]

http://narrowboats.apolloduck.co.uk/feature.phtml?id=310104 "Tax Status....tax paid"

Edited July 21, 2013 by Capt.Golightly

[Paul C]

http://narrowboats.apolloduck.co.uk/feature.phtml?id=310104 "Tax Status....tax paid"

 

Yeah I'd say its VAT too, based on the advert being on Apolloduck where all types of boats/ships are sold. 99.9% of narrowboats are going to be in the "tax paid" category.

[Capt.Golightly]

Phew!!!....thanks folks

[OldGoat]

"Tax paid" is important for seagoing boats that could have been bought outside the EU - VAT has to be paid on import (or when an an undeclared boat is discovered).

 

There's no relevance if the boat had been built in the UK (or EU) as VAT would have been paid at every stage when the boat was built.

 

It's shown on sites like Apollo Duck because they cater for all sorts of boats, many of which could have been imported.

[by'eck]

I believe its also relevant to company owned boats being sold on.

 

Although VAT would have been paid on purchase it can be claimed back by the company during their ownership. If its then sold, VAT is attracted again so it would need to be advertised as tax unpaid.

 

This happened with a boat I purchased as third owner. The original purchase was through a Dutch company. The second private owner was obliged to pay Dutch VAT on it and passed the certificate to myself.