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HMRC internal manual

VAT Sailaway Boat Scheme

Operation of the scheme: Accounting arrangements

Suppliers are advised to take a deposit of the VAT due when the vessel is supplied. Ifevidence of export is not received by the time the trader is required to submit their VATreturn, the deposit should be brought to account as VAT.

If a deposit of the VAT has not been taken and the evidence of export has not beenreceived the VAT records must be amended and VAT brought to account. VAT should be broughtto account on the taxable proportion of the invoiced amount e.g. at the rate of 17.5% thiswould be 7/47ths of the invoice total.

If the evidence of export is obtained at a later date, the VAT account may be adjusted inthe period in which the evidence was obtained.

The supply must not be zero-rated until the supplier holds the evidenceof export described in VSWB3030.