EU ― selling a new means of transport (NMT) (until 31 December 2020)

Produced by Tolley
EU ― selling a new means of transport (NMT) (until 31 December 2020)

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • EU ― selling a new means of transport (NMT) (until 31 December 2020)
  • What is an NMT?
  • What is ‘new’?
  • What does ‘first entered service’ mean?
  • What is the procedure for buying an NMT in the UK for removal to another EU member state?
  • Form 411
  • Registration, licensing insurance
  • What happens if the NMT is not removed from the UK?
  • Should the vehicle be insured?
  • Sale by VAT registered UK supplier
  • More...

This note applies to transactions whilst the Great Britain was a member of the EU and during the transition period that ended on 31 December 2020. For information on Northern Ireland see the Northern Ireland topic. This guidance note deals with the VAT issues associated with a purchaser buying an NMT in the UK that will be removed to another EU member state. The following is HMRC’s view on the rules regarding the sale of an NMT. However, remember that other EU member states may impose different requirements. Therefore, if a purchaser is buying an NMT that will be removed to another EU member state it may be prudent for the purchaser to confirm the rules in the EU member state where the car will used to confirm the precise requirements for that country.

What is an NMT?

The following are deemed to be an NMT for VAT purposes:

  1. a boat more than 7.5 metres long (about 24.6 feet)

  2. an aircraft with a takeoff weight of more than 1550 kg (about 4417 lb)

  3. a motorised land vehicle which has a displacement or cylinder capacity of more than 48 cubic centimetres or is constructed or adapted to be electrically propelled using more than 7.2 kilowatts (about 9.65 horsepower)

It should be noted that the following will not be viewed as new means of transport:

  1. vehicles which are not suitable for use on public roads (eg off road motorcycles, combine harvesters, motorised lawnmowers and hot air balloons)

However, a tractor that can be used on public roads can usually be treated as an NMT.

What is ‘new’?

An NMT will be deemed to be new in the following circumstances:

Type of vehicleWhen an NMT is deemed to be ‘new’
Vessel or aircraftIf less than three months have elapsed since the vessel / aircraft was first entered into service and the vehicle has travelled under ‘its own’ power for less than 100 hours for a ship or

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