Mon May 09, 2005 3:27 pm
Mon May 09, 2005 4:29 pm
Mon May 09, 2005 7:07 pm
VAT and secondhand boats
Assuming that value-added tax was paid on the boat you are buying when it was first sold, or that it was built before 1985, it is not liable to further payment.
However, if you ever take it to any other European Union country you will need to prove that it is exempt, or you could be presented with a bill for their equivalent of the VAT. And, pending payment, the boat is likely to be impounded.
For a vessel built before 1985, you will need to be able to provide evidence of the build date. For one built in or after that year, you should procure a VAT invoice for it, and carry this on board.
Note that if the boat was owned by a company which paid no VAT, or reclaimed it, then the tax is payable when the vessel changes hands. In this case the seller should charge VAT when selling it; this explains why you occasionally see secondhand boats advertised as being VAT-payable. To avoid being caught out by this, insist that on the invoice, bill of sale or receipt the seller states that he is selling the boat as a private EU national, and includes an address.
Such a declaration should also be an acceptable alternative to a VAT invoice, if it is irretrievably lost.
Besides the importance of having a boat surveyed before you commit yourself to buying it, the other essential is to make absolutely sure that it really does belong to the person who is selling it.
What you need to find is evidence of 'clear title', which means ownership by right, with no other person or institution having a claim on the vessel.
Every year a number of vessels are sold by people who, sometimes unknowingly, don't legally own them. And occasionally these vessels turn out to be the security for an undeclared mortgage; when they are reclaimed by the finance company, the buyers can lose most or all of the money they paid for them.