Proving and verifying VAT status: which documents count, and checking before you offer

Documents that count

Customs and tax authorities accept several kinds of proof. Any one that is complete and matches the boat will do:

• The original sales invoice from the first sale in the EU, showing VAT charged. This is usually builder to dealer, then dealer to first owner.
• The customs import document, if the boat came from outside the EU and VAT was paid on entry.
• A T2L or T2LF, the document that proves Union status. See EU customs status vs VAT status (incl. the T2L).
• Transport records, bills of sale and other proof that link the boat to an EU VAT payment and its origin.

Documents that do not prove it

• A registration certificate. It proves the boat is on a register, nothing about VAT.
• A CE plate or a declaration of conformity. Both relate to design standards. See CE marking and the Recreational Craft Directive: design categories A to D.
• The seller's email or the listing text.

Check the paper against the boat

1. The hull identification number on the invoice matches the HIN on the transom. See Verifying the HIN / CIN.
2. The model, year and builder match.
3. The invoice is an original or a certified copy, with a seller name and VAT number.
4. Each bill of sale links one owner to the next, with no gap.
5. For a company seller or dealer, enter the VAT number in VIES, the European Commission's online VAT number checker, to confirm it is valid.

When the status can be lost

Sources describe two ways to lose it: the boat leaves the EU for three years or longer, or it is sold while outside the EU. If the boat has spent time in Turkey, Montenegro, the UK or North Africa, ask where it was and for how long, and ask for evidence.

Some boats show VAT paid through leasing structures that tax authorities have challenged. If the paperwork involves a lease company in another country, have a tax adviser read it before you offer.

When there is no proof

Treat the boat as VAT not paid and price it that way. See Buying a VAT-not-paid yacht. A seller who cannot find the papers can sometimes get copies from the builder, the dealer or the customs office.

Do it before the offer

Ask for these documents in your first message about a boat, and again before you sign the agreement. See Making an offer and the memorandum of agreement and Due diligence before you pay a deposit.

Related guides

• Yacht VAT explained: VAT paid vs VAT not paid
• What does VAT paid mean on a yacht?
• Checking ownership