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HMRC internal manual

VAT Single Market

HM Revenue & Customs
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Transfers of own goods: background

Normally transfers of goods within the same legal entity (for example between branches of the same company), or within a VAT group, do not represent a supply for VAT purposes. However, if it also involves removal of the goods from one Member State to another it is deemed to be a supply. This is often referred to as a movement, or transfer, of own goods

The place of the supply follows the normal rules. So, if the goods are removed from the UK to another Member State, the deemed supply is in the UK (with an acquisition in the Member State to which the goods are sent). It follows therefore that where goods are removed to the UK from another Member State there is an acquisition in the UK.

This only applies where the goods move between Member States. Goods transferred to or from a place outside the EC are subject to import and export procedures in the normal way.