Payment—VAT on acquisitions
V5.125 Accounting for VAT on acquisitions
Acquisitions made by taxable persons
For the accounting of VAT on acquisitions made by taxable persons, see V3.396.
Acquisitions made by non-taxable persons—VAT
In general, acquisitions by non-taxable persons are subject to VAT in the member state from which they are despatched, and consequently there is no further tax liability when the goods enter the UK. There are, however, two exceptions to this rule, namely acquisitions of goods subject to excise duty, and acquisitions of new means of transport. The means by which VAT is paid in relation to such acquisitions is set out below.
Acquisitions made by non-taxable persons—goods subject to excise duty ('exciseable goods')
Regulations1 made under VATA 1994, Sch 11, para 2(4) and (5) make provisions for:
• the notification of exciseable goods2 acquired from another EC member state3 by a person who is not a taxable person4 at the time of acquisition5, and
• payment of tax in respect of the acquisition
Acquisitions of exciseable goods made by non-taxable persons—notification
The person acquiring the goods6 is required to notify HMRC of the acquisition by the later of7:
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