What is the new means of transport scheme?
The new means of transport (NMT) scheme is an European-Union-wide arrangement that is intended to tax new means of transport in the member-state of acquisition or consumption (intended use). The scheme requires new means of transport supplied for removal to be zero-rated in the country of original supply.
Strictly speaking new means of transport applies only to supplies to persons or businesses who are not VAT registered in the member state of destination, as supplies of such means of transport to VAT registered person is treated in exactly the same way as the supply of an other intra-community supply of goods.
Scope of this guidance
The guidance is aimed at HMRC staff and should not be relied upon by private persons or businesses who are not VAT registered in calculating their taxes and/or duties.
This guidance describes the procedures for controlling the new means of transport arrangements. It should be read in conjunction with Notice 728 New means of transport which explains the scheme in detail. This guidance also:
- sets out the roles of the VAT Supply Policy Team, VAT Advisory Team, the Units of Expertise (UoEs) and the Personal Transport Unit (PTU);
- helps assurance officers to verify businesses which supply or acquire new means of transport in the UK; and
- helps officers to respond to general enquiries from traders and members of the public.