Excl. VAT, incl. VAT, 10% or 20% VAT: how to read a boat quote properly

A quote for an event on a boat often mixes several VAT rates: catering is generally subject to the reduced rate of 10%, while the hire itself, service charges and alcoholic drinks usually fall under 20%. Reading a quote therefore means comparing the amounts excluding VAT to compare two offers, then checking the final amount including VAT. If in doubt, ask the boat operator for clarification.

Tax rules can change or depend on your circumstances: this article offers general guidance, not personalised tax advice.

Excl. VAT and incl. VAT: comparing at the right level

The amount excluding VAT is the basis for comparing offers, because it does not depend on the rate applied. The amount including VAT is what you actually pay. A private individual thinks in terms of the VAT-inclusive price, whereas a VAT-registered business thinks in terms of the VAT-exclusive price. Make sure all the quotes you compare are presented in the same way.

The lines at 10%

Catering, meaning meals and certain non-alcoholic drinks, is in principle eligible for the reduced rate. If your quote clearly separates the catering element, you can check that the rate applied is consistent. Our article on catering on a boat helps you spot this item.

The lines at 20%

The hire of the boat, the cruise itself, the DJ, the technical equipment and alcoholic drinks are often subject to the standard rate. An all-inclusive quote may mix the two rates: ask for a breakdown so that you can understand the total.

The business that reclaims VAT

Depending on the case, a business may be able to reclaim VAT on certain expenses, but not always on all of them: the rules differ in particular for hospitality costs. Check with your accounts department or your adviser before committing. For invoicing, see our article on company invoices.

For a full overview of the budget, read our guide to private boat hire and our brief for requesting a quote.