VATNINMT1000 - Introduction

What is the new means of transport scheme?

The new means of transport (NMT) scheme is an EU-wide arrangement that is intended to tax new means of transport in the member-state of acquisition or consumption (intended use). Under the Northern Ireland Protocol the scheme includes sales of NMT between Northern Ireland and the EU. Prior to 1 January 2021 the scheme applied in the whole of the UK. The scheme requires new means of transport supplied for removal to be zero-rated in the country of original supply.

Strictly speaking new means of transport applies only to supplies to persons or businesses who are not VAT registered in the destination country, as supplies of such means of transport to VAT registered person is treated in exactly the same way as the supply of any other intra-community supply of goods.

Scope of this guidance

The guidance is aimed at HMRC staff and should not be relied upon by private persons or businesses who are not VAT registered in calculating their taxes and/or duties.

This guidance describes the procedures for controlling the new means of transport arrangements. It should be read in conjunction with Notice 728 New means of transport which explains the scheme in detail. This guidance also:

• sets out the roles of the VAT Principles Policy Team, VAT Advisory Team, the Units of Expertise (UoEs) and the Personal Transport Unit (PTU);
• helps assurance officers to verify businesses which supply or acquire new means of transport in Northern Ireland; and
• helps officers to respond to general enquiries from businesses and members of the public.