Commentary

V4.304 Zero-rating goods exported as stores, merchandise for sale on ships/aircraft and freight containers

Part V4 Exemption, zero-rating and reduced rates

V4.304 Zero-rating goods exported as stores, merchandise for sale on ships/aircraft and freight containers

V4.304 Zero-rating goods exported as stores, merchandise for sale on ships/aircraft and freight containers

Zero-rating goods exported as stores

Meaning of stores

Stores are goods for use in a ship, aircraft or hovercraft and include1:

  1.  

    •     fuel

  2.  

    •     goods for running repairs or maintenance (eg lubricants, spare and replacement parts)

  3.  

    •     goods for general use on board by the crew

  4.  

    •     goods for sale by retail to passengers who are carried on voyages or flights and who intend to use the goods on board only

Conditions for zero-rating supplies of stores

The conditions that must be satisfied for a supply of goods classed as stores to be zero-rated are as follows2:

  1.  

    •     HMRC is satisfied that the goods are shipped from the UK within three months of supply3

  2.  

    •     HMRC is satisfied that the person supplying the goods has shipped them for use as stores on a voyage or flight to an eventual destination outside the UK (or, in the case of HM Ships, a voyage outside UK territorial waters4 of more than 15 days' duration5)

  3.  

    •     such conditions (if any) as may be specified in regulations are fulfilled

  4.  

    •     such conditions (if any) as HMRC may impose are fulfilled

  5.  

    •     the voyage or flight is not made for a private purpose by the person to whom the goods were supplied6

No regulations have been made to date.

Stores supplied to VAT registered shipping lines and airline operators

A VAT-registered shipping line or airline operator can choose one of the following options for supplies of stores

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