The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the VAT zero-rating rules that can be used in respect of a boat that will be exported to a destination outside of the EU.
A sailaway boat is:
delivered to an authorised skipper located in the EU
transported, under its own power, to a country outside of the EU (exported)
The boat must be used for private purposes by an overseas visitor who intends to export the boat, under its own power, to a country outside of the EU. The boat must be exported within 6 months of the delivery date. The delivery date is normally the date that it leaves the supplier / manufacturer's premises. The boat must not be used for commercial purposes under this scheme.
It should be noted that before 1 January 2012, the VSWB scheme could only be used by UK residents who purchased a boat that they intended to export to a non-EU destination. From January 2012, VAT must be charged on the sale of a boat to UK resident customers, unless it is possible for the sale to be zero-rated as the export of goods to a non-EU country. Please see the Exporting goods to non-EU countries (until 31 December 2020) guidance note for more information.
If the seller arranges for the boat to be exported, either using a trailer or its own skipper, these provisions cannot be used and the sale of the boat can only be zero-rated if it meets the normal export zero-rating provisions. See the Exporting goods to non-EU countries (until 31 December 2020) guidance note for more information.
The following cannot be zero-rated under these provisions:
boats that are exported via a trailer (see above)
parts and accessories (this may be zero-rated as a retail exported if the relevant conditions have been satisfied)
commercial supplies (these may still be zero-rated for VAT purposes as an export)
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