RCB/38/09 VAT—“Dutch barges” and similar vessels designed for and used as permanent residential accommodation by owners
Revenue & Customs Brief, Issue 38. 8 July 2009
Who needs to read this?
Businesses making supplies of:
— vessels to be used for permanent residential living by the owner
— certain goods and services to the owners of vessels used for permanent residential living by the owner
This brief also withdraws Section 4 of Business Brief 35/04 “VAT–clarification of the VAT liability of ships supplied to customers who intend to use them as residential accommodation”.
“Qualifying ships” – are zero-rated for VAT purposes. A “qualifying ship” is defined as a ship which is not less than 15 gross tons and is neither designed nor adapted for use for recreation or pleasure. The law is set out in VATA 1995, Sch 8, Group 8, Item 1 and legal note A1(a).
“Houseboats” – are covered by a separate zero-rate. For VAT purposes, “houseboats” are boats designed as living accommodation that do not have, and cannot be fitted with, a means of propulsion. If a boat can be fitted with a means of propulsion, it is