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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: return of faulty vehicles

Where a manufacturer has agreed to replace a faulty new means of transport acquired from another member-state, acquisition tax will only be due either where the new means of transport supplied, as a replacement, is of a higher specification due to lack of availability of the original model; or the customer has asked for a higher specification model. A change in list price will not normally generate an additional charge. Acquisition tax will be due on the difference between the original value and the replacement value provided that the:

  • vehicle is returned to the member-state of supply;
  • acquirer notifies the PTU in writing of the return of the faulty vehicle advising the UK registration mark and vehicle identification number; and

a replacement invoice for the new vehicle with a copy of the original vehicle invoice is sent to the PTU with a VAT 415 (or a VAT NOVA1 if a land vehicle) for the new vehicle to enable assessment of any additional tax due.