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HMRC internal manual

VAT Sailaway Boat Scheme

From
HM Revenue & Customs
Updated
, see all updates

Operation of the scheme: The conditions of the scheme

Certain conditions must be met by private individuals purchasing vessels under thescheme and by traders supplying vessels.

Purchasers

The scheme can only be used by an eligible person - see VSWB2020- who intends to export the boat to a final destination outside the EC within thespecified time limits also described in VSWB2020.

The purchaser must:

  • Complete a Form VAT 436.
  • Complete a Form C1331 Pleasure Craft on Non EU Voyages – Leaving the UK.
  • Produce the completed VAT 436 and C1331 to UK customs if the UK is the final departure point from the EC.

If exiting the EC via a Member State other than the UK, the purchaser must:

  • Complete a Single Adminstrative Document (SAD) form C88 for production to customs in the UK and to the customs authorities in the Member State of departure. In these circumstances, there is no requirement to present form C1331.
  • Return the certified VAT 436 (and, if applicable, C88) to the supplier.

The purchaser must not dispose or attempt to dispose of the vessel in the EC by hire,pledge as security, sale, gift or any other means.

The finance arrangements for the purchase of the vessel may involve using the boat’sdocuments as security. Whilst this is acceptable, the vessel must not be pledged assecurity for a separate purchase.

Suppliers

The supplier must:

  • Ensure that the customer is entitled to use the scheme.
  • Keep a stock of VAT Notice 703/3 Sailaway Boat Scheme and VAT 436 forms.
  • Fully complete the VAT 436 along with the customer. Copy (2) must be sent to the Personal Transport (PTU) in Dover - see VSWB1060 - at least 2 weeks before the delivery date of the boat. All notifications should have a serial number in the top right hand corner. Copies (1) and (3) are given to the customer (1) for certification at export and (3) for the customer’s records. Copy (4) is retained by the supplier for his own records.
  • Keep a separate record of all vessels supplied under the scheme showing the details of the boat and the consecutive number. The details required will appear on the supplier’s copy (4) of the VAT 436.