Purchasing a new means of transport in the UK for removal to another member-state: supplies to taxable and non-taxable persons
Supplies to persons who are registered for VAT in another EU member-state
The supply and removal of a new means of transport to a registered person in another member-state is subject to the same accounting requirements as other intra-Community supplies. The zero-rating of these transactions should be supported by normal commercial documentation, including the purchaser’s VAT number and evidence of removal from the UK.
Strictly this is not a supply of NMT, rather an intra-community supply of goods that happen to be means of transport that happen to be ‘new’.
For land vehicles the supplier will normally hold a form VAT 411A enabling a vehicle to be registered with the DVLA on ‘export plates’ (see VATNMT3500).
Supplies to non-taxable persons in another member-state
The term ‘non-taxable person’ typically means a private individual but can refer to non VAT registered businesses. This section is not just directed at persons located in another member-state, but also to UK persons who intend to remove a new means of transport to another member-state. Remember the nationality of the purchaser is not important; it is the destination and intended place of use of the new means of transport that determines the treatment.
The EC and UK legislation treat non-taxable persons as if they were taxable persons for the purposes of the supply of new means of transport. A supplier zero-rating the supply of a new means of transport must hold as part of their business records a fully completed copy of Form VAT 411 (see VATNMT4150), available from the National Advice Service (NAS). A supplier does not need to hold evidence of removal from the UK after a genuine new means of transport supply is made as removal is the responsibility of the purchaser.
This is also covered in Notice 728 New means of transport.
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)