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HMRC internal manual

VAT Single Market

Transfers of own goods: Exceptions: Background

Certain categories of transfer are excluded from the normal treatment of transfers of own goods, in the sense that they are not treated as a supply. These exclusions are set out in paragraph 6(2) of Schedule 4 to the VAT Act 1994 (see VATSM4220) and, in secondary legislation, in the VAT (Removal of Goods) Order 1992 and the VAT (Removal of Gas and Electricity) Order 2004 (see VATSM4230). The categories are

  • temporary removals to another Member State in the course of delivery or transport of goods (see VATSM4620)
  • goods transported by the supplier to a place of installation or assembly in another Member State (see VATSM4630)
  • supplies of goods subject to the distance selling rules (see VATSM4640)
  • on-board supplies of goods treated as supplied in the Member State of departure of a ship, aircraft or train (see VATSM4650)
  • goods moved by the supplier or customer during the course of a normal intra-EC supply (see VATSM4660)
  • goods sent for, or returned following, processing, alteration, repair or valuation in another Member State (see VATSM4670)
  • goods that are to be used, or have been used, to make a supply of services in another Member State (see VATSM4680)
  • situations in which goods are transferred to (and their subsequent return from) another Member State which would be eligible for Customs temporary importation relief had they arrived from somewhere outside the EC (see VATSM4680), and
  • natural gas and electricity (along with heat and cooling) (see VATSM4690).