V.A.T.

[valrene9600]

So what is the vat by,eck says he did,nt have to pay

[Southern Star]

The OP could reclaim the VAT if he was VAT registered himself and needed to purchase the boat in the course of his business. For example, he may run a canal photography business, if you get my drift.

[Guest]

The OP could reclaim the VAT if he was VAT registered himself and needed to purchase the boat in the course of his business. For example, he may run a canal photography business, if you get my drift.

That was debunked the last time you suggested it.

[Southern Star]

That was debunked the last time you suggested it.

Although not by the poster who had actually done it.

[by'eck]

So are you saying all boats on brokerage have vat thats paid by the seller

 

No you misunderstood. I was referring to previously company owned boats where the initial VAT on purchase had been recovered. Commision charges on brokerage sales are regarded as a service which attracts VAT but is an entirely seperate issue.

[Guest]

Although not by the poster who had actually done it.

It was pointed out it was an area that HMRC are taking an additional interest in ie specifically setting up a company for the purposes of reclaiming the Vat. Just because somebody has done it doesn't make it right.

Edited March 24, 2015 by MJG

[Timleech]

The OP could reclaim the VAT if he was VAT registered himself and needed to purchase the boat in the course of his business. For example, he may run a canal photography business, if you get my drift.

 

He would then be required to charge VAT when it comes to selling the boat.

 

Tim

[larryjc]

As someone who has done exactly this maybe I can shed some light. Some years ago I bought a new yacht from a broker and I bought it VAT free from them. This was the 'sailaway' scheme. I had 90 days to get it out of the EU which in my case I did by shipping it to the Caribbean. Had it remained anywhere in the EU after 90 days I would be liable to pay the VAT on the full purchase price. If I stayed away for over 12 months and brought it back I would pay VAT on the residual value - assessed by the country I first landed in. There was also another scheme that would have allowed me to take It to the Channel islands but I would have to have been a resident.

 

Mind you if the OP is talking about a narrow boat - where on earth is he considering taking it??!!

[matty40s]

The OP doesn't actually say that the narrowboat is going anywhere, they just want to know if they can reclaim the VAT paid when they themselves wander off somewhere else.

To which the answer seems to be no.

[by'eck]

As someone who has done exactly this maybe I can shed some light. Some years ago I bought a new yacht from a broker and I bought it VAT free from them. This was the 'sailaway' scheme. I had 90 days to get it out of the EU which in my case I did by shipping it to the Caribbean. Had it remained anywhere in the EU after 90 days I would be liable to pay the VAT on the full purchase price. If I stayed away for over 12 months and brought it back I would pay VAT on the residual value - assessed by the country I first landed in. There was also another scheme that would have allowed me to take It to the Channel islands but I would have to have been a resident.

 

Mind you if the OP is talking about a narrow boat - where on earth is he considering taking it??!!

 

I don't know whether its still allowed but I heard of people employing a spin-off of this. A new boat built in the UK was purchased VAT free and during the 90 days grace period sailed to another EU country to pay the VAT there. Not only could you choose one with a lower tax rate, but the value it was charged on could be assesed rather than using the purchase invoice value. The foreign country obviously welcomed the business as well.

[LoneWolf]

 

The problem is that the OP has not given sufficient information to get a definite answer. e.g. he has not said whether or not the boat is to remain in the UK, or if the boat might be bought from a VAT registered business (in which case VAT would be due on the full price - but that might still be nothing if it is a zero-rated vessel), or buying one through a broker (in which case he pays VAT on the brokerage fees, as said).

 

 

 

Sorry not true. A VAT registered company within the EU can buy a new boat and reclaim the VAT through its account. When it comes to sell it's advertised as VAT unpaid which is then charged on the sale value. Company vans are treated similarly. Sometimes a voluntary VAT payment is made on a company registered secondhand boat at a value agreed by the EU countries revenue authorities.

 

My last boat was sold to me in this manner, as the broker advised the Dutch owner to pay the VAT before the sale. I received a Dutch VAT paid document with the boat saving me having to pay it myself.

 

 

You're both correct, but the scenarios you describe are so unlikely as to just muddle the issue for the OP - if vat is chargeable because the boat was used in the course of a business then the OP would still not be able to reclaim it unless he also registered and used it in the course of his business or took it with him when he went back to australia

 

 

 

oh, and for Martin, you are correct "in the course of a business" wouldn't include living in it while running a photography business from it as someone suggested

[harleyj]

Unless I can fit my future narrow boat into my suitcase I don't think that we will be able to bring it back to Australia so by the look of things we will not be able to reclaim the V.A.T.. Thanks for all the advice.

[larryjc]

 

I don't know whether its still allowed but I heard of people employing a spin-off of this. A new boat built in the UK was purchased VAT free and during the 90 days grace period sailed to another EU country to pay the VAT there. Not only could you choose one with a lower tax rate, but the value it was charged on could be assesed rather than using the purchase invoice value. The foreign country obviously welcomed the business as well.

They would have to take it away for a minimum of twelve months before the VAT would be based on residual value rather than invoiced purchase price. People would often come back to the EU via the Azores or Malta as they offered 10% VAT and 'good' valuations in order to attract the cash. That was a few years ago but I suspect there are deals around still.

[Tam & Di]

Unless I can fit my future narrow boat into my suitcase I don't think that we will be able to bring it back to Australia so by the look of things we will not be able to reclaim the V.A.T.. Thanks for all the advice.

 

OK, so we now know you are talking about a narrow boat so that narrows it down a bit (no pun intended ) and that you will keep it in the UK. Narrow boats are never going to be of a size to be a qualifying ship for zero rating so that is out. If it's a new one from a VAT registered builder you will be paying VAT on the whole thing; if it is a second hand one there will be no tax if you buy it direct from a private owner, but wil be tax on the brokerage fee if you buy it through a broker (assuming the broker does an amount of business that takes him over the level where he doesn't have to be registered).

Edited March 25, 2015 by Tam & Di

[cuthound]

if it is a second hand one there will be no tax if you buy it direct from a private owner, but wil be tax on the brokerage fee if you buy it through a broker (assuming the broker does an amount of business that takes him over the level where he doesn't have to be registered).

The seller of a narrow boat pays the brokers fees, including the VAT element, or at least he did when I bought mine.

[George94]

The seller of a narrow boat pays the brokers fees, including the VAT element, or at least he did when I bought mine.

 

As stated in Post 25.