EU ― selling a new means of transport (NMT)

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • EU ― selling a new means of transport (NMT)
  • What is an NMT?
  • What is the procedure for buying an NMT in the UK for removal to another EU member state?
  • Registration, licensing insurance
  • Sale by VAT registered UK supplier
  • What happens if a non-VAT registered UK individual sells a car that is removed to another EU member state?

This guidance note deals with the VAT issues associated with a purchaser buying an NMT in the UK that will be removed to another EU member state. The following is HMRC’s view on the rules regarding the sale of an NMT. However, remember that other EU member states may impose different requirements. Therefore, if a purchaser is buying an NMT that will be removed to another EU member state it may be prudent for the purchaser to confirm the rules in the EU member state where the car will used to confirm the precise requirements for that country.

VATNMT4000; SI 1995/2518, Reg 155; 2006/112/EC , Article 138(1)(a); HMRC Notice 728 ; De Voil Indirect Tax Service V5.154 (subscription sensitive)

Please see the Buying a new means of transport (NMT) from another EU member state guidance note if a UK purchaser is acquiring an NMT from another EU member state, as this guidance note only deals with supplies of NMTs.

What is an NMT?

The following are deemed to be an NMT for VAT purposes:

  • a boat more than 7.5 metres long (about 24.6 feet)
  • an aircraft with a takeoff weight of more than 1550 kg (about 4417 lb)
  • a motorised land vehicle which has a displacement or cylinder capacity of more than 48 cubic centimetres or is constructed or adapted to be electrically propelled using more than 7.2 kilowatts (about 9.65 horsepower)

It should be noted that the following will not be viewed as new means of transport:

  • vehicles which are not suitable for use on public roads (eg off road motorcycles, combine harvesters, motorised lawnmowers and hot air balloons)

However,

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