Vat??

[glen76]

why would a second hand boat hat lives in the uk have VAT charged on it??

cheers glen

 

[Jon Fuller]

It must have been originally sold outside the uk, and not had VAT charged when new, then it's been brought back in to the UK, but hasn't yet have the VAT payed, which of course should have been payed when it came back in to UK waters, if it were on a permanent basis.

beyond that, I dunno.

 

[glen76]

its 10months old and ,lived in dorset all its life!!

 

[Jon Fuller]

sounds strange TD may know, he's well versed with vat.

 

[Captain Chaos]

and probably how best to avoid it!

 

[Tony Davis]

and probably how best to avoid it!

Oi, I resemble that remark!!! Me and customs and excise have an understanding, I don't pay any, and in return I don't ask for any back.

 

[Tony Davis]

its 10months old and ,lived in dorset all its life!!

Maybe it's company owned.

 

[Captain Chaos]

yeh, i tried that arrangement with me trout!

 

[glen76]

ah it could be company owned, the guy is a broker. but with the VAT it comes out about £500 cheaper than a new one!!! does that mean he would have claimed the VAT back or never paid it??

 

[Tony Davis]

The broker could have claimed the vat back when he bought it new, and so has to charge vat when he sells it.

 

[glen76]

ok cheers td that explains it

 

[Ice Kiddie]

Businesses have to register for VAT if their turnover exceeds a threshold - approximately £55k.

This is a big problem for brokers... if they let the purchaser deal directly with the vendor, they're gonna get cut out, yes? So I guess thet they handle the transaction - so a couple of sales per year and they're well over the VAT threshold (no danger for David B then!) which means they have to charge VAT, and their boats become 17½% more expensive - extremely bad news for a private customer.

However, a thread on the toob site a while ago suggested that marine brokers can take advantage of a scheme which applies to used car dealers, where they pay VAT only on the markup, not the total price.