VATNIEU4670 | Transfers of own goods: Exceptions: Services applied to goods

Article 4(e) of the VAT (Removal of Goods) Order 1992, applies to movements of goods to which services have been, or are to be, applied. Services include

• processing

• repair

• minor alteration

• valuation, and

• testing.

As a result, the transport of the goods is disregarded as a movement of own goods, so long as:

• the service to be applied physically takes place in the member state to which the goods are sent, and

• they are returned to the member state from which they were sent.

4 Subject to article 5 below, paragraph 30(1) and (2) of Schedule 9ZB to the Act shall not apply to the following removals of goods from a member State to a place in any other member State

(e)where:

(i) the goods have been removed to a place in the destination country for the purpose of delivering them to a person (other than the owner) who is to value or carry out any work on them in that place; and

(ii) the owner intends that the goods will be returned to him by their removal to the departure country upon completion of the valuation or work;