VATNINMT5100 - Purchasing a new means of transport in an EU member state and bringing it to Northern Ireland: acquisition

An acquisition results from a supply of a new means of transport in an EU member-state and the subsequent removal of the new means of transport to Northern Ireland. Acquisition procedures depend on the VAT status of the acquirer.

The terms acquisition should not be confused with the physical movement of the NMT.

The time of Acquisition is either

  • the 15th day of the month following the one in which the goods were dispatched, or
  • the date the supplier issues an invoice (including an invoice issued before the goods are sent).

Further information on this is given in the Northern Ireland and EU Guidance VATNIEU3000 and VATNIEU3400.

Acquisitions by VAT-registered persons

VAT-registered persons acquiring new means of transport into Northern Ireland for use or resale should declare acquisition VAT on the VAT return covering the period in which the acquisition occurred. Strictly this is not an acquisition of a new means of transport but the acquisition of goods that happen to be a means of transport and that happen to be new.

For further information on the accounting requirements, see Notice 725.

VAT registered persons acquiring land vehicles into the UK have to notify HMRC about the vehicle’s arrival using the Notification of Vehicle Arrival (NOVA) system via HMRC’s online services https://www.gov.uk/nova-log-in.

VAT treatment of non-NMTs acquired by VAT-registered persons

Acquisition of a means of transport by VAT-registered persons, which are not new means of transport at the time of supply, are only liable to VAT in the UK if the means of transport is sold exclusive of VAT in the EU member-state of supply.

Acquisition of a means of transport which was supplied as a new means of transport but by the time it arrived in Northern Ireland had ceased to be a new means of transport (strictly defined) should still be taxed in on arrival. This follows the principle set out in the Swedish yacht case, see VATNINMT3600 and also VATNINMT8200.

Sales of means of transport using the second-hand margin scheme are always liable to VAT in the member-state of supply. Further information on this is given in Notice 718/1. The Notice 718/1 Margin Scheme on second-hand cars and other vehicles. See also VATNINMT8300.

VATNINMT5300 sets out the process for declaring the acquisition of a NMT to HMRC.

Persons acquiring land vehicles into the UK have to notify HMRC about the vehicle’s arrival using the Notification of Vehicle Arrival (NOVA) system via HMRC’s online services - https://www.gov.uk/nova-log-in.