.png)
.png)
Residential ships
Customs have clarified their policy on the application of the zero rates for ships and houseboats.
'Qualifying ships' are zero rated for VAT purposes. A qualifying ship is defined as a ship which is over 15 gross tons and is neither designed nor adapted for use for recreation or pleasure. Such ships usually have clear features of a commercial design such as a hold specifically designed for carrying cargo commercial fishing equipment or the ability to carry or entertain large numbers of paying passengers. Recreational activities could include pleasure sailing or cruising on inland waterways. A ship that is either designed or adapted with the ability to be used for private recreation or pleasure cannot be a qualifying ship regardless of how the purchaser intends to use it.
'Houseboats' are covered by a separate zero rate. For VAT purposes houseboats are designed...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
