New means of transport
This notice cancels and replaces Notice 728 (April 2013).
Main narrative treatment—V1.294, V3.388B, V3.396A, V4.312, V5.115, V5.125.
1.1 What this notice is about
This notice explains how VAT applies to new means of transport (NMT).
In the EU most goods are charged with VAT in the country in which they are purchased. However for a new vehicle, boat or aircraft, VAT will be due in the member state of destination if:
• it falls within the definition of NMT
• it's sold to a customer who intends to take it to another member state
The definition of a 'means of transport' within this notice and when it's 'new' is common to all EU member states and is only for the purpose of determining when VAT is due. Other agencies, for example, the Driver and Vehicle Licensing Agency (DVLA), may have different definitions.
References to the DVLA should be read as including The Driver and Vehicle Agency (DVA) in Northern Ireland.
References to 'ship' includes 'boat' or 'vessel'.
This notice also provides information on how to notify HMRC about the arrival of any NMT into the UK.
1.2 Audience for this notice
This notice should be read by anyone considering obtaining a land vehicle, ship or aircraft in another member state with the intention of bringing it into the UK and vice versa.
2 How to identify and deal with a NMT
Main narrative treatment—V1.294.
2.1 The definition of 'means of transport'
When it's intended for the transport of passengers or goods a 'means of transport' is any of