Commentary

V5.154 VAT refunds in respect of new means of transport removed to another EU member state

Part V5 Compliance, enforcement and appeals

V5.154 VAT refunds in respect of new means of transport removed to another EU member state

V5.154 VAT refunds in respect of new means of transport removed to another EU member state

A person who is not a taxable person1 may make a supply of goods which involves the removal of the goods to another EU member state2. He may claim a refund of the following if the supply consists in a new means of transport3:

  1.  

    •     the amount of any tax on the supply of that new means of transport to him

  2.  

    •     the amount of any tax paid by him on the acquisition of that new means of transport from another EU member state, or

  3.  

    •     the amount of any tax paid by him on the importation of that means of transport from a place outside the EU

For the definition of new means of transport, see V1.294.

HMRC is required to make a refund if a claim is made. However, the amount of tax refunded may not exceed the amount paid when the new means of transport was obtained4.

Example

X buys a new motor car in the UK for £9,000 plus VAT of £1,575. He sells the car, which remains a new means of transport, to Y for £10,105 and ships the car to France. Y is not a taxable person.

Y may

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