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HMRC internal manual

VAT Single Market

Transfers of own goods: Exceptions: Services applied to goods

Article 4(e) and (i) of the VAT (Removal of Goods) Order 1992 (see VATSM4230), applies to movements of goods to which services have been, or are to be, applied. Services include

  • processing
  • repair
  • minor alteration
  • valuation, and
  • testing.

As a result the transport of the goods is disregarded as a movement of own goods, so long as

  • the service to be applied physically takes place in the Member State to which the goods are sent, and
  • they are returned to the Member State from which they were sent.