VSWB4020 - Assurance procedures: assurance objectives

The main objectives when assuring the scheme are set out below.

Ensure that

All documents refer to the same vessel.

Achieved by

Comparing the certified Form VAT 436 to the other commercial documents relating to the supply, which the trader should hold.

Ensure that

The supply has correctly been zero-rated.

Achieved by 

Scrutinising the business' copy of the VAT 436 and ensuring that the evidence of export on the original copy (1) of the VAT 436 has been stamped by customs authorities within the time limits for export. Where vessels are exported from Northern Ireland via an EU Member State, the business should also retain the Single Administrative Document (SAD) (C88) duly stamped by customs. Photocopies should not be accepted.

Checking that the date of export is within the 6 month time limit from the date the vessel was delivered (also shown on the VAT 436).

Ensure that

The Personal Transport Unit (PTU) has been notified.

Achieved by 

Checking with the PTU to confirm they have received a copy of the VAT 436.

Ensure that

Vessels have only been supplied to qualifying non-resident individuals.

Achieved by 

Residents of Northern Ireland can, in theory, purchase sailaway boats in Great Britain and vice versa. However, special rules apply such that UK VAT is accounted for. This is covered in VATGBNI.

Where possible, carrying out random checks on buyers particularly those shown as UK residents.

Check that the buyer is not a business. If it is, see action to take in the table at VSWB4050.