HM Revenue & Customs

When will VAT be due?

VAT will be due on the vehicle if a private individual or a non-VAT registered business purchases a vehicle from another EU Member State that is classed as a 'new means of transport'. Please see Public Notice 728 for a definition of new means of transport. This notice is available online.

The VAT will be calculated for you by the online system and confirmed to you in an electronic message sent to your customer communications area. You will be required to make a payment as part of the notification process. Payment should be made electronically using the Faster Payments Service, Bacs (Bankers Automated Clearing Services) or CHAPS (Clearing House Automated Payment System) quoting your VAT Registration Number. Once payment has been received a further message will be sent to confirm your eligibility to register and license the vehicle.

If a VAT registered business purchases a vehicle from another EU Member State and that vehicle is classed as a new means of transport or a qualifying vehicle, you will be required to account for the VAT due as acquisition tax on you next VAT return. Please see Public Notice 728 for a definition of a qualifying vehicle. This notice is available online. The VAT due will be calculated for you by the online system and confirmed to you in an electronic message. This message will also confirm your eligibility to register and license the vehicle.

If you are bringing a vehicle into the UK from outside the EU you will have accounted for VAT at the time of the vehicle's arrival into the UK and no further payment will be due.