If the seller is unable to provide the normal documentation for vessels in the UK its recommended that while cruising within the EU you carry a Bill of Sale if applicable and between two private individuals in the UK.
Second hand boat vat. The general rule in the UK is that if the yacht has increased in value since the date of purchase by the seller VAT will be due on the amount by which the value has increased even if VAT was previously paid on the purchase of the yacht and has not been reclaimed. This includes 430 new watercraft and 964 used boats available from both individual owners selling their own boats and professional boat dealerships who can often offer boat financing and extended boat warranties. Purchasers of new and second hand boats will now need to think more carefully about where they buy their boat and where they want to keep it in the long term.
Buying a used boat is similar to buying a used car - vat is only paid on the boat when new then it is vat exempt. The International Council of Marine Industry Associations ICOMIA European Boating Industry EBI European Boating Association EBA British Marine BM and the Royal Yachting Association RYA joined forces to. It is truly bizarre that boats are the only privately owned secondhand goods that a member of the public is required to prove VAT has been paid before he sells it.
My client seems to think that there should be no VAT charged on the sale of the boat because they didnt pay VAT on it initially but as a VAT registered business I believe they should be charging VAT on this as it is a supply of goods. Ultimately VAT duty falls on the current owner so it is imperative that you receive the right paperwork before buying a second hand boat. Which Boats Should Have Had VAT Paid on Them.
Majesty 140 3. Research boat buying selling and ownership through a wealth of articles and videos. 2007 Late Fairline Targa 38 Low hours 140 Hours 2 X VOLVO D6 310S EVC Lying Jersey Channel Islands Jersey from new.
Boats in New York. The BMF executive has been very patient while Customs have carried out their deliberations on this secondhand issue but they and the RYA are being put under pressure to go public. When buying a second-hand pleasure craft from any VAT registered business in the EU the invoice should itemize the VAT charged in that transaction.
Essentially paying UK or EU VAT will be dependent on the location of the purchased yacht not the residency of the person buying it. My Client has a boat that has been used in the business for a few years. As previously reported in PBO since 1 January 2021 British ownedregistered boats are only permitted free circulation VAT paid in EU countries under specific.