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Finance Act 2012

Section 202: Power to Require Notification of Arrival of Means of Transport in Uk


1.Section 202 provides for the introduction on 15 April 2013 of a new notification system for arrivals of means of transport in the United Kingdom, and payment of VAT due.

Details of the Section

2.New paragraph 2(5A) provides that provision may be made by regulations for requiring a relevant person to notify, and make payment of any VAT due in respect of, the arrival in the UK of a means of transport from another member State, or from outside of the member States, to the Commissioners at such time and in such form and manner as they may specify.

3.New paragraph 2(5B) provides that provision may be made by  regulations made under new paragraph 2(5A):

  • to specify the particulars to be notified to the Commissioners in relation to the arrival of a means of transport in the UK (including details of any VAT chargeable);

  • for a person specified or of a description specified in the regulations who is not the relevant person to make the notification on behalf of a relevant person;

  • for the notification to contain a declaration given in such form and by such person as may be specified in the regulations in relation to the information contained in the notification, and;

  • to make supplementary, incidental and consequential changes to other parts of the legislation and introduce transitional provisions if need be.

4.New paragraph 2(5C) provides that section 97(3) Value Added Tax Act 1994 (“VATA”) (i.e. the affirmative resolution procedure) applies to regulations made under new paragraph 2 (5A) which amend an enactment.

5.New paragraph 2 (5D) introduces definitions for the terms “means of transport” and “relevant person”.

Background Note

6.At Budget 2011, the Government announced a joint initiative between HM Revenue & Customs (HMRC) and the Driver and Vehicle Licensing Agency (DVLA) to combat VAT fraud on road vehicles brought into the UK.

7.From 2013, a person bringing a new or used road vehicle into the UK for permanent use on UK roads will have to notify HMRC within 14 days of the arrival of the road vehicle in the UK. In the case of an acquisition of a new road vehicle from within the EU, private individuals and non-VAT registered businesses will be required to pay any VAT due at the time of notification.  VAT registered customers will continue to make payment via their VAT returns. In the case of a road vehicle imported from outside the EU, VAT will continue to be collected under existing arrangements.

8.Until HMRC is notified and any VAT due has been paid or, in the case of VAT registered businesses, is assessed as "secure", it will not be possible to licence and register a road vehicle with the DVLA. Online notification is expected to be the preferred method of communication, although a paper channel will also be available.

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