The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This note discusses the VAT treatment of freight transport and related services. If you are dealing with the VAT treatment of passenger transport services, please see the Supplies of passenger transport services guidance note.
Freight transportation occurs when a vehicle, ship or aircraft is provided together with a driver / crew for the carriage of goods. If a business hires a ship or aircraft without a driver / crew then a means of transport is being supplied not freight transport services and the VAT treatment could be different, see the Hiring goods, e-services, telecommunication services and radio and broadcasting services guidance note for more information. Also if a business hires a vehicle, ship or aircraft and it is not used to transport goods then freight transportation services are not being provided.
Freight includes the following types of goods:
A business needs to know the following in order to determine the correct VAT treatment of freight transport services:
De Voil V3.183 (subscription sensitive)
Different VAT rules will apply to the freight transport services depending on the answers to the two questions above.
This section covers freight transport
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