ICS of a new means of transport
Supplies of a new means of transport to any person in another Member State are considered intra-Community supplies (ICS). A new means of transport is a motor vehicle, boat or aircraft. The customer acquiring the new means of transport must pay Value-Added Tax (VAT) in the Member State of destination.
This includes sales of new means of transport to a private individual in another Member State. In such circumstances, 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 Member State, the dealer should refund the VAT charged to the customer. The dealer can then adjust the VAT liability accordingly in their VAT return for the period.
The dealer should retain all documentary proof, such as:
- a copy of the receipt showing payment of VAT in respect of the new means of transport concerned
- proof of the registration of the means of transport in the other Member State.
The following table sets out what is regarded as being a new means of transport for VAT purposes:
|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|
Supplies of excisable goods to other Member States
Any supplier who makes sales of excisable goods to another Member State must register for Value-Added Tax (VAT) in that Member State. Sales of excisable goods will always be subject to VAT in the Member State of arrival.
What are excisable goods?
Excisable goods are as follows:
- Alcohol and alcoholic beverages, for instance:
- Tobacco products, for instance:
- roll-your-own and pipe tobacco.
- Mineral oils (motor and heating fuels).
Further guidance contains more detailed information on the VAT treatment of excisable goods.