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Old 20 July 2008, 19:47   #11
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Originally Posted by Observer View Post
I'd need to check VAT manual for the details but this is very probably because RNLI's activities are funded by charitable donations. Therefore, by a special dispensation, suppliers to RNLI are allowed to zero rate the supply of (some, maybe not all) goods and services. However, when RNLI sells a boat it has purchased with the benefit of this exemption, it has to account for VAT on the selling price. So the net VAT loss to HMRC is VAT on the depreciation.

It's not unique to boats. The dispensation applies to a range of other goods. I've come across it before on medical equipment.
Correct, there is some form filling to be done but yes suppliers can supply certain goods to charities a a zero vat rate, it applies to most items but not to others for example shoes! I know because we cant get zero vat shoes for the rescue boat!
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Old 21 July 2008, 06:30   #12
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thanks for the imformation on this one. I must say, it seems far from simple.
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Old 21 July 2008, 07:15   #13
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Originally Posted by MIRO Stewart View Post
I know because we cant get zero vat shoes for the rescue boat!
Is workwear not VAT free?

Not that I am suggesting you wear steel toe cap boots on a boat.
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Old 21 July 2008, 08:29   #14
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Is workwear not VAT free?

Not that I am suggesting you wear steel toe cap boots on a boat.
Had this situation a few years back with another independent station who couldn't get their local VAT office to exempt drysuit purchases.

It's because in law the VAT exemption applies to rescue equipment - i.e. the boat, radios, MOB devices, etc...but not things like PPE. It's far from straightforward.

It's also why there is a very low threshold for items for resale (fundraising branded items, etc) and why for example the RNLI don't sell souvenirs - RNLI Trading Ltd do that (with profits covenented back to the RNLI).
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