Value Added Tax Act 1994 section 10

Scope of VAT on acquisitions from member States

Section 10 sets out when VAT is chargeable on goods acquired from another EU member State, defining the conditions that make an acquisition taxable and subject to UK VAT.

• VAT applies to acquisitions of goods from other member States where the acquisition is taxable, takes place in the UK, is not part of a taxable supply, and is made by a taxable person (or involves excise goods or new means of transport)
• An acquisition is taxable if it is made in the course of business (or non-business activities of a body corporate or unincorporated body), or if it involves a new means of transport, provided it is not exempt
• The supplier must be registered for tax in another member State and must be acting in the course of their own business for the acquisition to fall within the charge
• Acquisitions of new means of transport are always potentially taxable, regardless of whether the acquirer is in business or the supplier is taxable in another member State