- Overview
- Zero rate of VAT on ICS of goods
- What is triangulation?
- Evidence required for ICS of goods
- Proving goods have been transported without engagement of presumption of transport
- Issues for suppliers to be aware of
- Supplies of excisable goods to other Member States
- ICS of a new means of transport
The supply of a new means of transport to any person in another Member State is considered an intra-Community supply (ICS). The term 'new means of transport' applies to motor vehicles, boats or aircrafts. The customer acquiring the new means of transport must pay Value-Added Tax (VAT) in the Member State of destination.
This includes the sale of a new means of transport to a private individual in another Member State. In such circ*mstances, VAT is ultimately payable in the Member State of arrival.
However, if the customer collects the new means of transport in that State, VAT should be charged by the dealer. When the customer satisfies the dealer that VAT has been paid in their own Member State, the dealer should refund the VAT charged to the customer.The dealer can thenadjust the VAT liability accordingly in their VAT return for that period.
The dealer should retain all documentary proof such as:
- a copy of the receipt showing payment of VAT in the other Member State in respect of the new means of transport concerned
- and
- proof of the registration of the new means of transport in the other Member State.
The following table sets out what is considered a new means of transport for VAT purposes:
| Transport | Specification | 'New' |
|---|---|---|
| Motor vehicle | Over 48cc or over 7.2kw power | 6 months old or less, or travelled 6,000km or less |
| Marine vessel | Over 7.5metres in length | 3 months old or less, or sailed for 100 hours or less |
| Aircraft | Over 1,550kg take-off weight | 3 months old or less, or flown for 40 hours or less |
Published: 20 October 2023 Please rate how useful this page was to you Print this page
