VSWB2000 - General principles

Definition of a sailaway boat

A “sailaway boat” is defined as a vessel which is:

  • to be delivered to the purchaser or their authorised skipper within Great Britain, or
  • to be delivered to the purchaser or their authorised skipper within Northern Ireland, and
  • in the case of Great Britain, to be exported under its own power to a destination outside the VAT territory of the UK
  • in the case of Northern Ireland, to be exported under its own power to a destination outside the VAT territory of the UK and the EU.

Although the scheme can be used for vessels that are removed from Great Britain to Northern Ireland special rules apply to ensure that UK VAT is accounted for.  See the guidance in VATGBNI for further details.

Both new and second-hand boats may be sold under the scheme.

Who can use the scheme

The scheme can only be used for the private purchase of a boat by overseas visitors. An overseas visitor is a person normally resident outside the UK (and EU in the case of Northern Ireland). The sale of vessels for commercial purposes is not permitted under this scheme.

Time limits for removal

The vessel must be exported within 6 months of the date of delivery - this is normally the date the vessel leaves the supplier’s premises.

Exports/Removals affected by the COVID19 emergency

If an exporter has problems exporting goods within prescribed time-limits, please see the temporary guidance in VEXP30310.

Direct exports

If a supplier arranges delivery of a boat, either on a trailer or by using a skipper employed by him the Sailaway Boat Scheme must not be used. The supply of a boat in these circumstances is a direct export and should be treated as set out in VAT Export and Removal of Goods from the UK.

In a direct export, the complete transaction from supply to exportation is under the control of the UK supplier.

Parts and accessories

“Parts and accessories” means items that are normally carried on board boats for repair and maintenance purposes. Notice 744C paragraphs 7.4 and 7.5 can be used as a guide to what can be include/excluded.

Spare parts and accessories supplied at the same time as the boat may be treated as part of the supply of the boat even if separately itemised.

In Northern Ireland parts or accessories may also be supplied to the customer under the Retail Export Scheme. Guidance can be found in

  • VAT Notice 704 - Retail Exports Scheme (Northern Ireland), and
  • VAT Retail Export Scheme in Northern Ireland (VATRESNI) - Personal exports - retail exports.