Value Added Tax Act 1994 section 61

Goods not transferred and no relevant event occurs within 12 months of arrival

Section 61 sets out the VAT consequences when goods that have arrived in a destination territory are not fully transferred to the customer and no relevant event takes place within 12 months.

• If the supplier does not transfer full ownership of the goods to the customer within 12 months of their arrival in the destination territory, and no relevant event occurs during that period, deemed supply rules are triggered.
• The supplier is treated as having made a supply of the goods in the relevant territory (as defined in paragraph 59(3)), even though no actual transfer of ownership has taken place.
• The deemed supply is treated as involving the removal of the goods from the origin territory at the start of the day immediately after the 12-month period expires, and the supplier is also treated as having made an acquisition of those goods in the destination territory.
• These rules are subject to the exceptions in paragraph 62, and the meaning of a "relevant event" is defined separately in paragraph 63.