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 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 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.
  • Also check 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).
  • Check with the Personal Transport Unit (PTU) to ensure it has been notified and have a copy of the VAT 436.
  • Ensure that vessels have only been supplied to qualifying non-resident individuals. In theory, residents of Northern Ireland can, 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 guidance at VSWB4050.