If you sell new vehicles in a European Union (EU) country, transport goods, or move vehicles across international borders, you must comply with specific VAT rules in each case. The rules are complex and it's a good idea to check with HM Revenue & Customs (HMRC) which regulations apply to your particular circumstances. You can call the HMRC VAT Helpline on Tel 0845 010 9000.
VAT for freight-transport businesses
The rules covering VAT for freight transport are complex. Freight-transport services must carefully consider the VAT that should be charged to customers on a case-by-case basis. This will depend on:
the type of transport service you're providing
the country or EU member state in which any part of the service is being provided
VAT treatment of new vehicles
If you buy or sell:
a ship more than 7.5 metres in length
any aircraft with a take-off weight of more than 1,550 kilograms
any motorised vehicle with a cylinder capacity (cc) of more than 48cc or that is electrically propelled using more than 78.2 kilowatts
You'll have to account for VAT and complete form VAT 411. In simple terms, VAT is zero-rated, but you must account for the VAT whether the purchaser is VAT-registered or not.
If you're importing a vehicle temporarily into the UK, you may be able to claim relief on import duties and VAT. Read Notice 308 on the temporary admission to the UK of non-European Community (EC) means of transport on the HMRC website.