Evidence sought on problems concerning VAT paid status of used boats

Created by doina. Last modified on 2006-01-13 11:05:52
Topic: VAT
Countries: United Kingdom

Following extensive discussions with HMRC (formerly Customs and Excise) over 3 years, the Cabinets Deregulation Unit and the DTI, on the question of proving that VAT has been paid on 2nd Hand Boats has reached the European Commissions VAT Administrative Committee. This committee met on the 9th December 2005, where other European Countries promised to advise UK Customs on the rules they apply locally and the range of solutions that other European Countries have adopted.

Following this, HMRC has asked the British MF to help them to prepare for the next meeting of this European Commission Committee. They have asked us to gather evidence in respect of individual owners who have encountered problems in proving VAT has been paid on 2nd Hand Boats, and obtain evidence about the impact on the UK 2nd Hand market of not having a protocol in place of what should occur in the absence of a VAT certificate.

If you have any documented examples of: Individuals being placed in a difficult situation because of an inability to prove that VAT has been paid on their boat and/or the impact, that the lack of a protocol (in the absence of a VAT invoice) on whether a boat should be regarded as VAT paid, has on the 2nd Hand Boat market.

We would like to thank those of you who have already supplied evidence of problems - but more evidence is needed. The BMF continue to pursue HMRC for an interim UK solution to this problem, as a Europe wide solution could take time to develop and be agreed.

Any evidence that you have in respect to both these problems should be sent to njohn@britishmarine.co.uk or aprice@britishmarine.co.uk