VATNINMT4050 - Purchasing a new means of transport in Northern Ireland for removal to an EU member state: the law

This is given in Regulation 155 of the VAT Regulations 1995 (SI 1995/2518):

The Commissioners may, on application by a person who is not taxable in a member state and who intends:

  • to purchase a new means of transport in Northern Ireland; and
  • to remove that new means of transport from Northern Ireland to a member state;

permit that person to purchase a new means of transport without payment of VAT, for subsequent removal to a member state within 2 months of the date of supply, and its supply, subject to such conditions as they may impose, shall be zero-rated.

This reflects Articles 138(1)(a) and 131 of Directive 112/2006 (the Principal VAT Directive).

This is given in section 30(8), VAT Act 1994, reflecting Article 138(2)(a) of Directive 112/2006 (the Principal VAT Directive)

(8) Regulations may provide for the zero-rating of supplies of goods, or of such goods as may be specified in the regulations, in cases where—

(a) the Commissioners are satisfied that the goods have been or are to be exported to such places as may be specified in the regulations, and

(b) such other conditions, if any, as may be specified in the regulations or the Commissioners may impose are fulfilled.

The other conditions … as … the Commissioners may impose referred to in Regulation 8(b) include one section of tertiary legislation Notice 728, Section 6.1 which says –

If you buy a means of transport in Northern Ireland to take to an EU member state, you will be liable for the VAT on the value of the means of transport when you arrive there. To make sure that the purchase of the means of transport is free of UK VAT, you must comply with certain conditions. These are:

  • the means of transport must be ‘new’
  • you or your authorised chauffeur, pilot or skipper must personally take delivery of the new means of transport in Northern Ireland
  • you must:
  • remove it from Northern Ireland to the member state of destination within 2 months of the
  • complete and sign a declaration on a form VAT 411, stating your intention to remove the new means of transport from Northern Ireland and pay any VAT due in the member state of destination, your supplier must complete their part of the form

Further information on the use of chauffeurs etc can be found in VATNINMT4350.