VAT, the single market and EC sales lists
HMRC have updated Notice 725 relating to VAT entitled ‘The single market’. The notice cancels and replaces the previous version published in December 2009. The notice has been updated to reflect changes to EC sales lists (ESL) which became effective back on 1 January 2010.
This notice explains the way VAT is charged and accounted for on movements of goods within the EC Single Market and how businesses should account for VAT on goods they buy from other EC Member States. The notice is relevant to any businesses involved in the movement of goods from the UK to other EC member states and vice versa, known as arrivals and dispatches.
The notice also covers a number of special rules that apply in certain circumstances including:
- Transfers of own goods.
- Temporary movements of goods.
- Installed or assembled goods.
- Intra-EC processing, repair, etc.
- Supplies to diplomatic missions, consulates, international organisations and NATO visiting forces.
- Other intra-EC movements of goods.