Value Added Tax Act 1994 section 40

Refunds in relation to new means of transport supplied to other member States

Section 40 provides for VAT refunds to non-VAT-registered persons who sell a new means of transport and remove it to another EU member State.

• A person who is not VAT-registered may claim a VAT refund when they supply a new means of transport and remove it to another member State.
• The refund equals the VAT originally charged on the supply of that means of transport, or the VAT paid on its acquisition from another member State, or the VAT paid on its importation from outside the member States.
• The refund is capped at the amount of VAT that would have been due if the supply had been a standard-rated taxable supply by a VAT-registered person.
• Any claim for a refund must be submitted within the time limits and in the form and manner required by HMRC.