Advice For Buyers
We know how exciting it is when purchasing your boat, and using JD Yachts will allow the transaction to progress without fuss, but with diligence and consideration.
Let us not forget that purchasing your new boat is often a large investment and should be treated accordingly.
At JD Yachts we recommend that all boat buyers instruct a professional surveyor. Instructing a surveyor could save you money and will give you peace of mind.
The surveyor will provide you with a written report that details the condition of the boat. The report can be as comprehensive as you require (it is advisable to discuss the type of report you require prior to the instruction), with the use of specialist equipment such as moisture meters for GRP hulls and multi-meters for steels hulls.
The report is crucial information, especially if defects are found. The findings can often result in a reduction on the price, or at the very least reparation before purchase.
At JD Yachts we are very proud of our impartiality and un-biased advice and therefore we don't recommend surveyors. However, we can recommend who to contact for advice in the selection of a surveyor, such as the professional associations YBDSA (Yacht Brokers, Designers and Surveyors Association website) and IIMS (International Institute of Marine Surveyors website) – both operating in the UK. All the surveyors recommended by the Associations will have the appropriate insurance.
PROOF OF OWNERSHIP
With each boat offered for sale we require proof of ownership as part of the registration process. We will establish who has title, whether there are any charges against the boat and whether or not VAT has been paid. We will guide you through all the necessary processes and assist wherever possible.
English law applies to all transactions. JD Yachts uses a sale contract (for sale or purchase) recognised by the British Marine Federation, of which we are a member.
The Recreational Craft Directive 94/25/EC – European Economic Directive, states:
A boat does not need to comply with the RCD if:
- It is one of the exclusions - principally craft intended solely for racing plus other minor categories
- It was built in the EEA prior to 16th June 1998
- It was in use in the EEA prior to 16th June 1998
- It is only visiting the EEA for reasons of tourism or in transit
A boat does need to comply with the RCD if it is not one of the above and if:
- It was first placed on the EEA market after 16th June 1998
- It was put into service in the EEA after 16th June 1998
- It is a home built boat placed on the market within five years of completion
- It is an experimental or racing boat being redesigned for compliance with the RCD
The EEA includes all EU States, their overseas territories and dependencies and Iceland and Norway.
JD Yachts will assist with your VAT queries, however it is ultimately your responsibility to confirm any VAT liability.
If you are a resident of the EU you should only use a vessel in the Community if it is VAT paid. You need to keep documentary evidence at all times in case you are asked by customs officials to prove the VAT status of your boat. Documentary evidence includes:
- Original invoice or receipt
- Evidence of VAT payment at importation
- Invoices for the construction of a 'home built' boat
It is worthy of note that a registration document does not prove the VAT status.
There are certain boats that are 'deemed VAT paid'. These are 'private pleasure craft' that were in use prior to 1st January 1985 and were in the EU on 31st December 1992. Documents that may be of use to prove the age and location of the boat:
Marine survey Part 1 Registration Insurance certificate
Receipt of mooring Receipt for harbour dues Dry dock records
We advise you always contact the relevant authorities before travelling to confirm what documentation will be required.
If you buy a used boat from a commercial organisation in the EU, you should ensure that VAT is shown separately on the invoice. The VAT needs to be paid by the organisation to the relevant collection authority, and if the invoice does not show VAT separately you may have difficulty in substantiating a claim that no further VAT is due. If you are buying from a business or an individual in the EU with no VAT liability , ensure you obtain evidence that VAT has been accounted for.
If VAT has been reclaimed on a company owned boat that is sold, VAT must be charged on the full sale value.
UK customs have a useful National Yachtline that will assist with any queries: +44 (0) 845 723 1110.