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ABYA Customs Warehousing Scheme

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Friday, 26 November 2010 10:20

Up until last year there was no facility to sell your boat on the open market in the UK unless VAT had been paid. Now there is an alternative. A simple scheme has been set up by and which allows a vendor to sell his boat even if VAT has not been paid, providing he works with an authorised yacht broker through the ABYA Customs Warehouse Scheme.

A vendor can now sell a boat even if VAT has not been paid, by working with an authorised broker.

How it works
In order to comply with this scheme the boat must have a minimum marketing value of £80,000. The first step is to contact your selected broker or ask ABYA for a list of brokers who have registered within the plan. A number of brokers are authorised to offer this facility which is available to members and non-members of ABYA.

The vessel is then brought into the UK using a shipping agent who will process the customs forms electronically. The appointed broker then sends ABYA details and documentation of the boat, its HIN/CIN, where it came from, and where the boat is. The boat is then identified as a “boat for sale” registered under this scheme and the broker will “tag” it with a sign. ABYA must be informed as to where the boat is moored, and if it is moved, either to a boat show for marketing purposes, or taken out on a sea trial. Under no circumstances can it be used privately or for leisure reasons. It is the same as being in a bonded warehouse – if it was whisky you wouldn’t be able to drink it until it was delivered to its new owner! The boat can have basic repairs and remedial work, such as osmosis treatment, but not a major re-fit.

The sale proceeds in the usual way and once ready to complete the broker sends ABYA the details. Once the funds are transferred, including the VAT payment if it is due, the shipping agent is advised to take the boat out of the Warehouse Scheme electronically. Once the boat is released by HMRC it can go off to its new owner. If the boat is going out of the EU, no VAT is due. There is an admin fee to ABYA which is collected through the Broker.

Posted: 2010-10-29 07:58:00