The VAT treatment of passenger transport
This notice cancels and replaces Notice 744A (December 2009).
This notice applies to supplies made on or after 1 January 2021.
It applies to supplies made in both Great Britain and Northern Ireland unless otherwise stated. References to UK should be construed accordingly.
1.1 What this notice is about
This notice explains the place of supply rules for passenger transport and the zero-rating of public passenger transport supplied in the UK.
Main narrative treatment—V4.251.
1.2 Changes made to this notice
This notice has been updated to reflect changes to the VAT treatment of supplies of goods and services following the UK's departure from the European Union.
1.3 Passenger transport services
Passenger transport services are supplied when a vehicle, ship or aircraft is provided together with a driver or crew, for the carriage of passengers. This may also include any incidental services. “Vehicle” includes trains and other land-based transport. If you hire a vehicle, ship or aircraft to a customer without a driver or crew, then you do not supply passenger transport services, but a means of transport.
If you hire a vehicle, ship or aircraft to a customer with a driver or crew but do not transport anyone or anything anywhere then you do not supply a transport service.
Notice 744C “Ships, trains, aircraft and associated services” explains hiring in more detail.
2 VAT treatment of passenger transport services
2.1 The liability of passenger transport services
Passenger transport services supplied in the UK (including its territorial waters) can be either—
• zero-rated (but you must keep