VEXP60500 - Stores for use in ships, aircraft or hovercraft: Marine fuel extra-statutory concession
The Marine Fuel ESC allows vessels engaged on commercial voyages within UK territorial waters (or within the limits of a port), to receive certain types of marine fuel VAT free. It is published in Notice 48 Extra-statutory concessions item number 9.2
Commercial vessels engaged on voyages within UK territorial waters (or within the limits of a port), may receive certain types of marine fuel VAT free providing the conditions set out in Notice 703 VAT: Exports and removals of goods from the United Kingdom are met.
This relief extends only to those supplies of fuel which were zero rated prior to 1 July 1990 under VATA 1983 Schedule 5 Group 7 item 4. It does not apply to diesel taxed at the full rate of duty, for example white Ultra Low Sulphur Diesel (ULSD) or to petrol, DERV or lubricating oils.
See section 8 of VAT on goods exported from the UK (VAT Notice 703), for the conditions that apply to zero rating these marine fuels.