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HMRC internal manual

VAT New Means of Transport

Purchasing a new means of transport in another member-state and bringing it to the UK: law

This is given in section 10(1)(c) of the VAT Act 1994:

VAT shall be charged on any acquisition from another Member State of any goods where—

(c) the person who makes the acquisition is a taxable person or the goods are subject to a duty of excise or consist in a new means of transport.

This reflects Article 2(1)(b) of Directive 112/2006 (the Principal VAT Directive).