Are Boats Older Than 25 Years Exempt From VAT

Created by doina. Last modified on 2007-03-19 14:21:22
Topic: VAT

We will be sailing our 32' sailboat to the EU in the near future. We have heard that boats over the age of 25 years are not subject to VAT. Is this correct?

According to the UK Customs and Excise website:

"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.

The following documents are useful to prove the age and location of the vessel:

For Age: Marine survey, Part 1 Registration, Insurance documents, Builders certificate

For Location: Receipt for mooring, Receipt for harbour dues, Dry dock records

If you are unable to provide any of the above, whilst cruising within the EU you should carry a Bill of Sale (between two private individuals in the UK). Whilst this is not conclusive proof that VAT has been paid, it does indicate that tax status is the responsibility of UK Customs. It is also advisable to contact the relevant authorities in the Member State, or their Embassy in the UK, to confirm what documentation will be required in advance of your voyage."

Otherwise, all boats are liable for VAT regardless of age.