The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note mainly deals with the specific VAT requirements associated with private individuals or businesses who are not VAT registered who purchase new motor vehicles in other EU member states and transport the motor vehicle to the UK.
Normally if a purchaser is not VAT registered in another EU member state, the supplier will be required to charge VAT in the country where the goods originate from at the appropriate rate. However, if the purchaser is buying an NMT from a vendor in another EU member state, responsibility to account for any VAT due on the sale is transferred to the purchaser who must pay the VAT due to its local tax office. Purchasers that fail to correctly pay VAT on the purchase of an NMT acquired from another EU member state will be liable to a civil penalty. Please see the Overview of the three penalties introduced from 1 April 2010 guidance note for more information.
If a UK VAT registered business acquires an NMT from another EU member state, the normal VAT rules apply to the purchase of goods from another EU member state. Please see the Buying goods from other EU vendors guidance note for more information.
Please note that the rules charged with effect from 15 April 2013 and this note has been updated to reflect those changes. Please note this note needs to be read in conjunction with the Bringing vehicles into the UK from 15 April 2013 guidance note.
The following are deemed to be an NMT for VAT purposes:
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