Value Added Tax Act 1994 section 13

Place of acquisition

Section 13 determines where an acquisition of goods from outside the United Kingdom is treated as taking place for VAT purposes, which in turn determines whether UK VAT applies to that acquisition.

• An acquisition of goods from outside the UK is treated as taking place in the UK if the goods end up in the UK, meaning they are removed to or already located in the United Kingdom at the point the acquisition occurs.
• If the person acquiring the goods is registered for VAT in the UK (or required to be), the acquisition is treated as taking place in the UK, even if the goods are physically located elsewhere.
• However, if the acquirer can demonstrate that VAT has already been accounted for on the acquisition in another country, the acquisition is not treated as taking place in the UK, avoiding double taxation.
• These rules were updated by the Taxation (Cross-border Trade) Act 2018 to reflect the UK's position following its departure from the European Union.