Zero-rating of international freight transport: Law
The law applying the zero-rate to international freight transport is in the VAT Act 1994, Schedule 8, Group 8, item 5:
- The transport of goods from a place within to a place outside the member States or vice versa, to the extent that those services are supplied within the United Kingdom.
Item 5 is based on the Principal VAT Directive (Directive 2006/112) Article 146 (1)(e).
146(1) Member States shall exempt the following transactions:
(e) the supply of services, including transport and ancillary transactions, but excluding the supply of services exempted in accordance with Articles 132 and 135, where these are directly connected with the exportation or importation of goods covered by Article 61 and Article 157(1)(a).