VBNB47220 - Specific issues: movement of own goods: conditions for reclassification of the original supply

The goods leaving GB may receive the same VAT treatment as a zero-rated export, despite being an internal UK movement, if all the following conditions are met:

• the goods were supplied to, or were imported by, the business that removed them from GB to NI
• that business is a taxable person for VAT purposes and has incurred irrecoverable VAT on the purchase/import of the goods in GB, because the goods relate either wholly to the person’s non-business activities or to both business and non-business activities.
• the goods must either not have been used before removal to NI, or, if the goods have been used in GB before their removal, their use in NI must be for the same purpose as in GB (i.e. they must remain for non-business use if used for non-business purpose in GB)
• the goods are moved to NI within 12 months of the irrecoverable VAT being incurred
• the removal of the goods must not be as part of a supply of those goods to another business
• VAT incurred on the removal of goods from GB to NI is non-deductible as input tax