Irish Revenue staff carried out 89 inspections in 2006 at ports including Bantry, Cork, Dublin, Limerick, Tralee and Waterford. This was up from 48 checks in 2005. The inspections resulted in the recovery of €998,770 in VAT and penalties. According to the Revenue Commissioners annual report for 2006 the amount is two-thirds more than in 2005. Despite warnings the amount of penalties being imposed on owners has increased. Over the last five years nearly €3m has been recovered by Revenue in unpaid VAT and penalties.

A Revenue spokesman said: “This is an ongoing operation to ensure compliance with EU Community VAT law governing payment of VAT on new yachts and boats acquired by State residents and imported into the State. The operation involves Revenue and the visits by Revenue officials to ports, yacht clubs and marinas to ensure that VAT has been paid on all of the vessels concerned”.

Boat owners have three days to pay the tax on new vessels that have been imported to Ireland VAT-free from abroad. The Revenue liaise with their counterparts in other countries so that sales are notified to the Irish authorities. Some boats have been seized by Revenue in recent years pending the payment of VAT by the owners.

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