Value Added Tax

Liability ― freight transport and related services

Produced by Tolley
  • 16 May 2022 05:16

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

  • Liability ― freight transport and related services
  • Freight transport and related services - the basics
  • Scope of zero-rating for freight transport services
  • Scope of zero-rating for services related to freight transport
  • Services provided in connection with ship, train and aircraft cargo
  • Services in connection with imports and exports
  • Scope of zero-rating for intermediary services connected with freight transport
  • Application of rules to freight forwarders
  • Practical points ― freight transport and related services

Liability ― freight transport and related services

This guidance note looks at the scope of VAT relief for UK supplies of freight transport and related services. It also looks at VAT relief for intermediary services connected with these kinds of supplies.

For the place of supply of freight transport and related services, see the Place of supply of services ― freight transport and related services guidance note.

For an overview of liability generally, see the Liability - overview guidance note.

For in-depth commentary on the legislation and case law on the liability of freight transports and related services, see De Voil Indirect Tax Service V4.251.

Freight transport and related services - the basics

To the extent that freight transport takes place entirely within the UK VAT relief is not normally available and the liability of supplies will be standard-rated.

However, freight transport services can be zero-rated where goods are transported from the UK to another country or vice versa.

As well as applying to the transport itself, the zero-rate of VAT can apply to some ‘related’ services and to various intermediary services connected with freight transport.

Due to the international nature of many freight transport services, place of supply considerations will also frequently be important to those operating in the sector. Obligations in other countries will need to be borne in mind as a resut. Such rules will not necessarily mirror UK provisions.

Scope of zero-rating for freight transport services

The transport of goods from within the UK to a place outside the UK is zero-rated to

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