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HMRC internal manual

VAT Transport

Chartering: Place of Supply

The place of supply of a ship or aircraft under charter is as follows.

  • A ship or aircraft without crew, whether under a written charter or not, or
  • a ship or aircraft with crew under a written charter

is treated under the place of supply rules for hire of means of transport (see VATPOSS).

But where the supply:

  • is of a ship or aircraft with crew but without a written charter, or
  • is to be treated as a supply of transportation

the place of supply is determined under the normal place of supply rules according to the services supplied - in most cases these are likely to be transportation (freight or passenger) (see VATPOSTR)