Commentary

V6.376 Liability of supplies and activities in the transport and freight sector

Part V6 Business by business

V6.376 Liability of supplies and activities in the transport and freight sector

Transport and freight

V6.376 Liability of supplies and activities in the transport and freight sector

Introduction to the transport and freight sector

This paragraph considers the VAT status of various activities which fall under the general heading of 'transport and freight'. It looks primarily at the following areas:

  1.  

    •     supplies of means of transport

  2.  

    •     supplies in the passenger transport sector

  3.  

    •     supplies in the freight transport sector

Liability of supplies of means of transport (and related supplies)

Whilst by default supplies will be standard-rated, VAT relief applies to the supply of certain means of transport. Common areas where relief may apply are described under the headings that follow.

Supplies of ships and aircraft

Zero-rating applies to the supply of 'qualifying ships' and 'qualifying aircraft'. The scope of this relief is outlined at V4.251A.

Goods supplied as ships' stores

A zero-rating is available for supplies made directly for use on a voyage or flight whose eventual destination is outside the UK. This includes goods supplied for retail sale to ship or aircraft passengers. Details of the scope and conditions attached to this zero-rating are described at V4.304.

Parts and equipment for ships and aircraft

Zero-rating is available for certain parts and equipment for 'qualifying' ships or aircraft. For details of the zero-rating, see 'Supplies of parts and equipment fitted in qualifying ships and aircraft—transport (zero-rating)' at V4.251A.

Repairs and maintenance of ships and aircraft

Repairs and maintenance carried out on a qualifying ship or aircraft may be zero-rated. For details of the zero-rating, see 'Supply, repair, maintenance,

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