Value Added Tax Act 1994 Schedule 13 para 3

Provisions related to the introduction of VAT

Schedule 13 paragraph 3 deals with the VAT treatment of vehicles originally relieved from purchase tax that are subsequently brought back into the United Kingdom.

• Vehicles that had purchase tax waived under the Purchase Tax Act 1963 because they were intended for use outside the United Kingdom are covered by this provision.
• If such a vehicle is later brought back into the United Kingdom, it is not treated as an import for VAT purposes.
• This means no VAT on importation is chargeable when the vehicle re-enters the country.
• The provision is a transitional measure ensuring that vehicles already relieved from the old purchase tax regime are not caught by the replacement VAT importation charge.