HMRC internal manual

VAT Export and Removal of Goods from the UK

VEXP60100 - Stores for use in ships, aircraft or hovercraft: The law on ships and aircraft stores

The legislation which enables UK businesses to zero rate supplies for use as stores in ships, aircraft and hovercraft on international journeys are sections 30(6) and 30(7) of the VAT Act 1994.

30(6) A supply of goods is zero-rated by virtue of this subsection if the Commissioners are satisfied that the person supplying the goods—

(a) has exported them

(b) has shipped them for use as stores on a voyage or flight to an eventual destination outside the United Kingdom, or as merchandise for sale by retail to persons carried on such a voyage or flight in a ship or aircraft,

and in either case if such other conditions, if any, as may be specified in regulations or the Commissioners may impose are fulfilled.

(7) Subsection (6)(b) above shall not apply in the case of goods shipped for use as stores on a voyage or flight to be made by the person to whom the goods were supplied and to be made for a purpose which is private.