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HMRC internal manual

VAT Sailaway Boat Scheme

HM Revenue & Customs
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Assurance procedures: taking action where other conditions are breached

Apart from the assessment action detailed at VSWB4040, there may be occasions where other conditions have been breached but assessment action against the supplier is not appropriate. The action required is detailed below.

### Condition breached… ### Action to take…
Boat discovered to have been used for commercial purposes. Suppliers may be completely unaware that the boat is being used for commercial purposes. In the absence of any evidence of collusion it would be unreasonable to assess the supplier who has acted in good faith. Where the purchaser is a UK resident and has falsely declared that the boat is a private purchase, the VAT originally relieved on purchase becomes due under section 30(10) of the VAT Act 1994.

There is further guidance on the use of section 30(10) of the VAT Act 1994 in VEXP90900.