V3.606 Movement of own goods

Movement of own goods from Northern Ireland to an EU member state (and vice versa)

VATA 1994, Sch 9ZB, para 30 stipulates that a person carrying on a business makes a supply of goods where the following conditions are met:

  1.  

    •     the goods in question are assets of the business

  2.  

    •     they are removed under the directions of that person, and

  3.  

    •     the removal is in the course or furtherance of that business for the purposes of being taken to a place in:

  4.  
    1.  

      –     in the case of goods removed from Northern Ireland, a member state, or

    2.  

      –     in the case of goods removed from a member state, to another member state or to Northern Ireland

This provision applies to the removal of goods whether or not the removal is, or is connected with, a transaction for consideration. In other words, even though there is no transaction (ie a transaction between contracting parties), this provision deems that the movement of the goods is to be treated as if there was a supply for consideration1.

Accordingly, a transfer of own goods from Northern Ireland to an EU member state (and vice versa) is a deemed supply of those goods and is liable to VAT in the same way as if the goods had been supplied to a third party in another member state. However, the supply may be zero-rated provided that the conditions set out at V3.602 are met. This may mean that the business will need

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