John Rodriguez ABYA Broker Ocean Cruising Club Member SAIL AWAY THE BOOK |
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Ultimately It is the responsibility of owners and purchasers to satisfy themselves regarding VAT or RCD liability,
however John Rodriguez Yachts will assist with the often complex issues surrounding VAT and RCD status.
Below are summaries of current VAT notices from HMRC and advice regarding the RCD. This information is
provided for guidance and confirmation or further information should be obtained from the relevant customs
authority or in the case of the RCD, a notified body.
VAT summary from Customs Notice 8. (Click here for the full text)
4.2 What documents will be required to provide proof of the VAT status on a used vessel?
EU residents should only use a vessel in the Community if it is VAT paid or ‘deemed’ VAT paid.
Documentary evidence supporting this should be carried at all times as you may be asked by customs officials
to provide evidence of your vessel’s VAT status, either in the UK or in other Member States. Documentary
evidence might include:
original invoice or receipt
evidence that VAT was paid at importation
invoices for materials used in the construction of a ‘Home-Built’ vessel.
A registration document on its own does not prove the VAT status of the vessel, as there is no link in the UK
between the registry of the vessel and the payment of VAT. If you have difficulty in providing the information,
you should contact the VAT, Excise & Customs helpline on 0845 010 9000.
Certain vessels that were in use as private pleasure craft prior to 1 January 1985 and were in the EU on 31
December 1992, may be deemed VAT paid under the Single Market transitional arrangements. As Austria,
Finland and Sweden joined the EU later, the relevant dates for vessels in these countries are ‘in use’ before 1
January 1987 and moored in EU on 31 December 1994.
After this date there were no further transitional arrangements agreed by the EU Commission for subsequent
EU expansions.
The following documents are useful to prove the age and location of the vessel:
For age:
Marine survey
Part 1 Registration
Builders certificate
Insurance documents
For location:
Receipt for mooring
Receipt for harbour dues
Dry dock records
If you are unable to provide any of the above for used vessels kept in the UK you should, whilst cruising within
the EU, carry a Bill of Sale (if applicable and between two private individuals in the UK). Whilst this is not
conclusive proof that VAT has been paid, it does indicate that the tax status is the responsibility of UK customs
authorities. It is also advisable to contact the relevant authorities in the Member State you intend to visit, or
their Embassy in the UK, to confirm what documentation will be required in advance of your voyage.
When buying a used pleasure craft from any VAT registered business in the EU, you should ensure that the
invoice shows separately any VAT which that business has charged to you on supply of the pleasure craft. If
the invoice does not show VAT separately you may have difficulty in demonstrating that VAT has been paid. If
you are buying from a business that does not charge VAT on the transaction or from a private individual in the
EU and the seller states that VAT has previously been paid on the vessel, you should obtain evidence from the
seller that VAT has previously been accounted for.
3.5 Can a vessel lose its VAT paid status?
VAT is due on the importation of any vessel from outside the EU. However, there are provisions for this VAT to
be relieved when an EU VAT paid vessel returns to the EU. If an EU VAT paid vessel leaves the EU, and
whilst outside the EU it is sold, the new owner will, unless eligible for one of the reliefs described
in Notice 8 , be liable to pay VAT if the vessel is brought back into the EU.
VAT guidance from ABYA
The evidence of VAT-paid status will generally be an invoice, showing the VAT element and a VAT number, or
similar document, such as a completion statement. Boats sold between companies should show the VAT
element on the invoice. Some EU states (notably Holland) ask for the original invoice, but otherwise a certified
copy kept on board should be adequate. Keep the original and a couple of certified copies safely elsewhere. It
is vital to pass this information on when the boat is sold, as it may be requested by Customs officers in either
the UK or elsewhere in the EU.
In the case of home-builds and fit-outs, copies of all the major invoices should be kept and passed to
subsequent owners to show VAT-paid status. Customs Notice 8 sets out further details.
Please note that HMRC do not have copies of individual VAT invoices from boat builders, dealers or other boat
sales transactions.
Any queries should be referred to HMRCs National Advice Line – 0845 010 9000. If they seem unsure, ask for
the matter to be referred to the HMRC Unit of Expertise on Yachts or email: pleasurecraft@lcsouth.hmrc.gsi.gov.
uk. Request any advice in writing, keep it with the boat's documentation, and pass it on to any subsequent
owners.
RCD summary
Recreational Craft Directive 94/25/EC, European Economic Area
A boat does not need to comply with the RCD if:
It is one of the exclusions - principally craft intended solely for racing plus other minor categories.
It was built in the EEA prior to 16th June 1998.
It was in use in the EEA prior to 16th June 1998.
It is only visiting the EEA for reasons of tourism or in transit.
A boat does need to comply with the RCD if it is not one of the above and if:
It was first placed on the EEA market after 16th June 1998.
It was put into service in the EEA after 16th June 1998.
It is a home built boat placed on the market within five years of completion.
It is an experimental or racing boat being redesigned for compliance with the RCD.
The EEA includes all EU States, their overseas territories and dependencies plus Iceland Norway and
Liechtenstein.
Further VAT and RCD guidance from ABYA can be found here
The RYA have advice on both VAT and The RCD here
YACHTS FOR SALE
SELL YOUR YACHT
GUIDE TO BUYING A BOAT
TESTIMONIALS
CONTACT
however John Rodriguez Yachts will assist with the often complex issues surrounding VAT and RCD status.
Below are summaries of current VAT notices from HMRC and advice regarding the RCD. This information is
provided for guidance and confirmation or further information should be obtained from the relevant customs
authority or in the case of the RCD, a notified body.
VAT summary from Customs Notice 8. (Click here for the full text)
4.2 What documents will be required to provide proof of the VAT status on a used vessel?
EU residents should only use a vessel in the Community if it is VAT paid or ‘deemed’ VAT paid.
Documentary evidence supporting this should be carried at all times as you may be asked by customs officials
to provide evidence of your vessel’s VAT status, either in the UK or in other Member States. Documentary
evidence might include:
original invoice or receipt
evidence that VAT was paid at importation
invoices for materials used in the construction of a ‘Home-Built’ vessel.
A registration document on its own does not prove the VAT status of the vessel, as there is no link in the UK
between the registry of the vessel and the payment of VAT. If you have difficulty in providing the information,
you should contact the VAT, Excise & Customs helpline on 0845 010 9000.
Certain vessels that were in use as private pleasure craft prior to 1 January 1985 and were in the EU on 31
December 1992, may be deemed VAT paid under the Single Market transitional arrangements. As Austria,
Finland and Sweden joined the EU later, the relevant dates for vessels in these countries are ‘in use’ before 1
January 1987 and moored in EU on 31 December 1994.
After this date there were no further transitional arrangements agreed by the EU Commission for subsequent
EU expansions.
The following documents are useful to prove the age and location of the vessel:
For age:
Marine survey
Part 1 Registration
Builders certificate
Insurance documents
For location:
Receipt for mooring
Receipt for harbour dues
Dry dock records
If you are unable to provide any of the above for used vessels kept in the UK you should, whilst cruising within
the EU, carry a Bill of Sale (if applicable and between two private individuals in the UK). Whilst this is not
conclusive proof that VAT has been paid, it does indicate that the tax status is the responsibility of UK customs
authorities. It is also advisable to contact the relevant authorities in the Member State you intend to visit, or
their Embassy in the UK, to confirm what documentation will be required in advance of your voyage.
When buying a used pleasure craft from any VAT registered business in the EU, you should ensure that the
invoice shows separately any VAT which that business has charged to you on supply of the pleasure craft. If
the invoice does not show VAT separately you may have difficulty in demonstrating that VAT has been paid. If
you are buying from a business that does not charge VAT on the transaction or from a private individual in the
EU and the seller states that VAT has previously been paid on the vessel, you should obtain evidence from the
seller that VAT has previously been accounted for.
3.5 Can a vessel lose its VAT paid status?
VAT is due on the importation of any vessel from outside the EU. However, there are provisions for this VAT to
be relieved when an EU VAT paid vessel returns to the EU. If an EU VAT paid vessel leaves the EU, and
whilst outside the EU it is sold, the new owner will, unless eligible for one of the reliefs described
in Notice 8 , be liable to pay VAT if the vessel is brought back into the EU.
VAT guidance from ABYA
The evidence of VAT-paid status will generally be an invoice, showing the VAT element and a VAT number, or
similar document, such as a completion statement. Boats sold between companies should show the VAT
element on the invoice. Some EU states (notably Holland) ask for the original invoice, but otherwise a certified
copy kept on board should be adequate. Keep the original and a couple of certified copies safely elsewhere. It
is vital to pass this information on when the boat is sold, as it may be requested by Customs officers in either
the UK or elsewhere in the EU.
In the case of home-builds and fit-outs, copies of all the major invoices should be kept and passed to
subsequent owners to show VAT-paid status. Customs Notice 8 sets out further details.
Please note that HMRC do not have copies of individual VAT invoices from boat builders, dealers or other boat
sales transactions.
Any queries should be referred to HMRCs National Advice Line – 0845 010 9000. If they seem unsure, ask for
the matter to be referred to the HMRC Unit of Expertise on Yachts or email: pleasurecraft@lcsouth.hmrc.gsi.gov.
uk. Request any advice in writing, keep it with the boat's documentation, and pass it on to any subsequent
owners.
RCD summary
Recreational Craft Directive 94/25/EC, European Economic Area
A boat does not need to comply with the RCD if:
It is one of the exclusions - principally craft intended solely for racing plus other minor categories.
It was built in the EEA prior to 16th June 1998.
It was in use in the EEA prior to 16th June 1998.
It is only visiting the EEA for reasons of tourism or in transit.
A boat does need to comply with the RCD if it is not one of the above and if:
It was first placed on the EEA market after 16th June 1998.
It was put into service in the EEA after 16th June 1998.
It is a home built boat placed on the market within five years of completion.
It is an experimental or racing boat being redesigned for compliance with the RCD.
The EEA includes all EU States, their overseas territories and dependencies plus Iceland Norway and
Liechtenstein.
Further VAT and RCD guidance from ABYA can be found here
The RYA have advice on both VAT and The RCD here
YACHTS FOR SALE
SELL YOUR YACHT
GUIDE TO BUYING A BOAT
TESTIMONIALS
CONTACT
| VAT and RCD |
John Rodriguez YACHTS WWW.JRYACHTS.COM Cruising and Bluewater Yachts For Sale |
