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HMRC internal manual

VAT Civil Penalties

New Means of Transport: Definitions: Definition of New Means of Transport

Please note: the Section 67 VATA 1994 penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 Finance Act 2008. The Failure to Notify penalty applies to obligations to notify the acquisition of a new means of transport on or after 01/04/2010. The penalty under Section 67 VATA 1994 continues to apply where the obligation to notify the acquisition of a new means of transport occurs before 01/04/2010.

Please see the Compliance Handbook CH70000 for more information about the Failure to Notify penalty.

The meaning of “new means of transport” (NMT) is given in the VAT Act 1994 section 95.

In this Act “means of transport” in the expression “new means of transport” means, subject to subsection (2) below, any of the following

Subsection (1)

  • Any ship exceeding 7.5 metres in length.
  • Any aircraft, the take-off weight of which exceeds 1550 kilograms.
  • Any motorised land vehicle which

    • Has an engine with a displacement or cylinder capacity exceeding 48 cubic centimetres, or
    • Is constructed or adapted to be electrically propelled using more than 7.2 kilowatts.

Subsection (2): A ship, aircraft or motorised land vehicle does not fall within subsection (1) above unless it is intended for the transport of persons or goods.

Subsection (3): For the purposes of this Act, a means of transport shall be treated as new, in relation to any supply or any acquisition from another Member State, at any time unless at that time

  • The period that has elapsed since its first entry into service is

    • In the case of a ship or aircraft, a period of more than 3 months.
    • In the case of a land vehicle, a period of more than 6 months


  • It has, since its first entry into service, travelled under its own power

    • In the case of a ship, more than 100 hours.
    • In the case of an aircraft, for more than 40 hours.
    • In the case of a land vehicle, for more than 6000 kilometres.

For example: A vehicle ceases to be a new means of transport 6 months and one day after first entry into service, providing it has also travelled more than 6000 kilometres.

Both criteria (period since first entry into service and hours / kilometres travelled) must be met for a ship, aircraft or vehicle to be no longer classed as a new means of transport.