VATNMT5500 - Purchasing a new means of transport in another member-state and bringing it to the UK: return of faulty vehicles

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.

Where a manufacturer has agreed to replace a faulty new means of transport acquired from another member-state, acquisition tax will only be due either where the new means of transport supplied, as a replacement, is of a higher specification due to lack of availability of the original model; or the customer has asked for a higher specification model. A change in list price will not normally generate an additional charge. Acquisition tax will be due on the difference between the original value and the replacement value provided that the:

• vehicle is returned to the member-state of supply;
• acquirer notifies the PTU in writing of the return of the faulty vehicle advising the UK registration mark and vehicle identification number; and

a replacement invoice for the new vehicle with a copy of the original vehicle invoice is sent to the PTU with a VAT 415 (or a VAT NOVA1 if a land vehicle) for the new vehicle to enable assessment of any additional tax due.