VATNMT1000 - Introduction
What is the new means of transport scheme?
The new means of transport (NMT) scheme is an European-Union-wide arrangement that is intended to tax new means of transport in the member-state of acquisition or consumption. The scheme requires new means of transport supplied for removal to be zero-rated in the country of original supply.
Strictly speaking the term “new means of transport” refers only to supplies to persons who are not VAT registered on the member state of destination, as supplies of such means of transport to VAT registered person is treated in exactly the same way as the supply of an other intra-community supply of goods.
Scope of this guidance
The guidance is aimed at HMRC staff and should not be relied upon by businesses in calculating their taxes and/or duties.
This guidance describes the procedures for controlling the new means of transport arrangements. It should be read in conjunction with Notice 728 New means of transport which explains the scheme in detail. This guidance also:
- sets out the roles of the Place and Time of Supply Team, the Motor Trade Unit of Expertise(UoE) and the Personal Transport Unit (PTU);
- helps assurance officers to verify businesses which supply or acquire NEW MEANS OF TRANSPORTs in the UK; and
- helps officers to respond to general enquiries from traders and members of the public.
