The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This note provides an overview of the VAT treatment of passenger transport services. The following topics are covered within the scope of this guidance note:
domestic and international passenger transport
ancillary transport services
restaurant and catering services on board ships, aircraft or trains during passenger transport
If the business is involved with providing advice on freight transport services, see the Supplies of freight transport services (rules until 31 December 2020) guidance note.
From a VAT perspective, the provision of passenger transport services is the provision of a vehicle, ship or aircraft together with the staff and crew used for transporting passengers. Please note that if a ferry, train or other vehicle is used to transport the vehicle and its passengers, this will still be treated as the supply of passenger transportation services. For example, if a coach taking passengers from the UK to France uses a ferry to get across the channel, this is the provision of passenger transport services. Alternatively, if the coach is transported across the Channel and it has no passengers (except the driver), then this will be regarded as the transportation of freight.
Incidental services connected with the provision of passenger transport services can also be included (see below).
The hire of a vehicle, ship or aircraft without crew is not passenger transportation services and is usually treated as the hire of a means of transport. Please see the Hiring goods, e-services, telecommunication services and radio and broadcasting services (rules until 31 December 2020) guidance note for further information.
According to HMRC, the list below are examples of what services can be viewed as passenger transport (this list is not exhaustive):
pleasure cruises (see below)
excursions by coach or train (including steam railways)
horse drawn buses
mystery coach or boat trips
the transport element of park and ride schemes designed to reduce traffic congestion in city centres, and
the transport of
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