VATNMT5400 - Purchasing a new means of transport in another member-state and bringing it to the UK: law

Note: The content of this manual applied up until 31 December 2020. Any content still applying to Northern Ireland after this date can be found in the VAT New Means of Transport Northern Ireland (VATNINMT) manual.

Legal requirements to account for VAT on acquisitions of new means of transport

This is given in section 10(1)(c) of the VAT Act 1994:

VAT shall be charged on any acquisition from another Member State of any goods where—

(c) the person who makes the acquisition is a taxable person or the goods are subject to a duty of excise or consist in a new means of transport.

This reflects Article 2(1)(b) of Directive 112/2006 (the Principal VAT Directive).