Aircraft and ships ― modification, repair and conversion, etc

Produced by Tolley
Aircraft and ships ― modification, repair and conversion, etc

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Aircraft and ships ― modification, repair and conversion, etc
  • Maintenance, modification and conversion
  • VAT treatment
  • Repair and maintenance of parts and equipment
  • Aircraft
  • Ships
  • Subcontractor
  • Parts and equipment used in qualifying aircraft and ships
  • Supplies to government departments and the Scottish Administration
  • Zero-rated parts and equipment
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked theend of theBrexit transition / implementation period entered into following theUK’s withdrawal from theEU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across theUK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see theBrexit — overview guidance note.

This guidance note provides an overview of thezero-rating provisions that apply to theconversion, maintenance, modification and repair of aircraft, ships and their parts. This note should be read in conjunction with theAircraft and ships ― supplies of aircraft and ships guidance note.

Maintenance, modification and conversion

Maintenance includes thefollowing types of services:

  1. cleaning

  2. fumigation

  3. ships laundry that is not of a personal nature for thecrew or passengers

  4. tests of components and parts

Modification and conversion includes thefollowing types of services:

  1. lengthening thevessel

  2. rebuilding work

  3. structural alterations to thevessel

VAT treatment

The following provides an overview of theVAT treatment of themain types of modification, maintenance and conversion works that could be undertaken in connection with a vessel.

Zero-rated workStandard rated work
repair and maintenance of a qualifying ship providing all of therelevant conditions are metrepair and maintenance of a non-qualifying ship or a qualifying ship where therelevant zero-rating conditions laid down in theAircraft and ships ― supplies of aircraft and ships guidance note have not been satisfied
modification or conversion of a qualifying ship providing that theship remains a qualifying ship after thework has been completedconversion or modification of a qualifying ship that ceases to be qualifying once thework has been completed
modification or conversion of a qualifying aircraft providing that theaircraft remains a qualifying aircraft after thework has been completedconversion of modification of a non-qualifying ship. Please note that thework will

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