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Where Taxpayers and Advisers Meet

*VAT on purchasing new boat in UK, launched in Spain*

lees99
Posts:2
Joined:Wed Aug 06, 2008 3:06 pm

Postby lees99 » Wed Feb 04, 2004 2:11 am

We've received various and often conflicting advice on this. Can anyone on the forum offer advice.

We've purchased a new boat from a UK manufacturer through a UK VAT registered company. The boat was taken over land and will be launched in Majorca, Spain. What is the VAT position on this - specifically :-
1) If a UK vat invoice is issued, we claim 17.5%, if a Spanish invoice is issued we claim 16% back
2) Does the country in which it is launched have any affect on where the vat is claimed back from ?
3) If we rent the boat out through a UK reg. company what is the position on rental income acquired in Spain ? Do we register with the Spanish authorities or pay output tax in the UK return ?
4) Does anyone know of any publiciation on vat on boats ? I've tryed C&E themselves but I'm more confused than ever.

Thanks for your help in advance

Stuart

paultaylor@vatease.c
Posts:397
Joined:Wed Aug 06, 2008 3:02 pm

Postby paultaylor@vatease.c » Wed Feb 04, 2004 3:09 am

Stuart,

Unfortunately the question you ask is far too complex for a free advice forum such as this. I recently assisted a client in a similar situation and clocked up over 50 hours work.

Briefly:

If you transport the boat from the manufacturers to Spain then they may be able to invoice you without VAT if you have a non-UK VAT registration.

If you are chartering the boat in Spain there is a good chance that you will have to register for tax there. If so you run the risk of having to pay "Matriculation Tax" of 12% of the value of the yacht, which is not recoverable.

I am not aware of any clear published guidance on the taxation of boats. Any publications by HM Customs & Excise would only deal with UK VAT. It is the interaction of UK VAT and Spanish VAT that is important.

It is imperative that you get good advice from a VAT specialist.

Regards

Paul Taylor
http://www.vatease.co.uk/
0121 778 4299


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