This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

VAT Place of Supply (Transport)

Passenger transport: Law: before 1 January 2010

UK LAW before 1 January 2010

Articles 6 to 8 VAT (Place of Supply of Services) Order 1992

  1. Subject to articles 7 and 10 below, services consisting of the transportation of passengers or goods shall be treated as supplied in the country in which the transportation takes place, and only to the extent that it takes place in that country.

  2. For the purposes of article 6 above, there shall be treated as taking place wholly in a country any transportation which takes place partly outside the territorial jurisdiction of that country where -

(a) it takes place in the course of a journey between two points in that country, whether or not as part of a longer journey involving travel to or from another country; and

(b) the means of transport used does not put in or land in another country in the course of the journey between those two points.

  1. Any -

(a) goods or services provided as part of a pleasure cruise; or

(b) services consisting of the transportation of any luggage or motor vehicle accompanying (in either case) a passenger,

shall be treated as supplied in the same place as the transportation of the passenger is treated as supplied (whether or not they would otherwise be treated as supplied separately); and, for the purpose of this article, a pleasure cruise shall be treated as the transportation of passengers.


EC LAW before 1 January

Article 46 Principal VAT Directive

The place of supply of transport other than the intra-Community transport of goods shall be the place where the transport takes place, proportionately in terms of distance covered.