Sailing a pleasure craft within UK waters
Check when you need to pay VAT on a vessel you’re keeping in the UK and how to provide evidence of VAT paid.
UK residents who use a pleasure craft for private use within UK waters may be asked to produce evidence on the age, location and VAT status of their vessel.
This includes owners, operators and those authorised to sail the pleasure craft.
A private vessel is one used for recreation. It can include a company owned vessel used for private recreational purposes.
Check if you need to pay VAT on a vessel to be kept in the UK
If you intend to keep a vessel in the UK and you’re importing it, you’ll have to pay VAT on the vessel’s value at the time of import.
If you’re buying a new pleasure craft in the UK and you intend to keep it in the UK, you’ll have to pay VAT on the purchase price.
Proving UK VAT status on a used vessel
UK residents should only use vessels in the UK if they are duty-paid as UK domestic goods and can be moved without restriction.
This includes pleasure craft with VAT paid or deemed VAT status valid at 31 December 2020 located in Great Britain (England, Scotland and Wales) on 31 December 2020.
Deemed VAT paid includes certain vessels that were in use as private pleasure craft prior to 1 January 1985 and were in the UK or EU on 31 December 1992.
You should carry documentary evidence supporting UK VAT status at all times as you may be asked by customs officials to provide it. You can use these documents:
- original invoice or receipt
- evidence that VAT was paid at importation
- invoices for materials used in the construction of a home-built vessel
A registration document on its own does not prove the UK VAT status of the vessel, as there is no link in the UK between the registry of the vessel and the payment of VAT.
If you have difficulty in providing the information, you should call the Imports and exports: general enquiries helpline.
Proving the vessel’s age and location
Certain documents are useful to prove the age and location of the vessel.
Evidence for age
You may use:
- marine survey
- part 1 registration
- insurance documents
- builders certificate
Evidence of location
You may use:
- receipt for mooring
- receipt for harbour dues
- dry dock records
Ask sellers for evidence of VAT charged or VAT already paid
When buying a used pleasure craft from any VAT-registered business in the UK, you should make sure that the invoice shows separately any VAT that the business has charged to you on the supply of the pleasure craft.
You should get evidence from the seller that VAT has already been accounted for if they say that UK VAT has previously been paid. You should do this if you’re buying a vessel from a:
-
business that does not charge VAT on the transaction
-
private individual in the UK
Spares, accessories and equipment
These may include:
- normal spare parts and equipment carried with the vessel
- articles for use on board the vessel such as lifeboats, life saving devices and furniture including first aid and survival equipment
These do not need to be declared unless they are imported separately from the vessel.