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HMRC internal manual

VAT Transport

HM Revenue & Customs
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Zero-rating of passenger transport: Cruises: Place of supply

A pleasure cruise is treated as a single supply of passenger transport for the purposes of determining the place of the supply. Passenger transport is taxed in the country in which it takes place - see VATPOSTR2200. Therefore, only cruises that take place wholly or partly in the UK fall within the scope of UK VAT.