Commentary

703/2/12 Sailaway boats supplied for export outside the EC

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

703/2/12 Sailaway boats supplied for export outside the EC

Part V8 HMRC Notices | Commentary

703/2/12
Sailaway boats supplied for export outside the EC

January 2012

This notice cancels and replaces Notices 703/2 (January 2011).

1 Sailaway boats supplied for export outside the EU

1.1 What is this notice about?

This notice explains the procedures for zero-rating the supply of a “sailaway” boat. It includes information that was previously contained in Notice 703/3 “Sailaway boat scheme” which is cancelled. The notice has been changed because UK residents can no longer purchase a boat using the scheme.

Main narrative treatment—V4.335.

1.2 What is the scheme?

It is a way for an entitled person to buy a boat for export from the European Union (EU) without paying VAT. Paragraphs 1.3 and 1.4 explain which boat purchases are eligible and who is an entitled person respectively.

1.3 What is the definition of a “sailaway boat”?

A “sailaway boat” is defined as a boat, which is to be—

  1.  

    —     delivered to the buyer or their authorised skipper within the EU; and

  2.  

    —     exported under its own power to a destination outside the VAT territory of the EU.

1.4 Who can use this scheme?

The scheme can only be used for the private purchase of a boat for private purposes by—

  1.  

    —     An overseas visitor who intends to export the boat under its own power to a destination outside the EU within six months of the date of delivery. This is normally the date the boat leaves the manufacturer or supplier.

This scheme must not be used to purchase boats used for commercial purchases.

Before 1 January 2012 UK residents who intended to export

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